Krishanveer Forge Limited

Industrials — Metal Fabrication · BSE

₹145.00+₹4.50 (+3.20%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

The 60-second version of Krishanveer Forge Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Krishanveer Forge Limited manufactures and sells open die forging products in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees63

Annual revenue₹77 Cr

How does it make money?

Turns over ₹77 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 63 employees supports ₹1.22 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.22 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 26.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved +514% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+13%

Margin effect+514%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.24 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.0x

3Y Median

28.9x

40 monthly readings · mean 33.7x · range 13.4x–75.5x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 51% below its 3y median of 28.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 15% above the peer median of 12.2x.

vs. its own history

Cheap

28.9x median over 40 months · -51%

vs. sector peers

Fair

12.2x median of 4 peers · +15%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

12.5x

PEG

0.16

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 6.5% to 16.3% over 3 years.
Debt is being paid down
Total debt is down 17% over 3 years.
Return on equity is rising
ROE has improved from 4.7% to 22.1%.
Return on capital is rising
ROCE has improved from 7.5% to 26.9%.
High return on capital employed
ROCE of 26.9% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of -3.52x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 34% against revenue up 13% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.5% to 16.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 51% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 34% against revenue up 13%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 14%✓ 16.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 4.1% CAGR
Latest reported year was -7.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ -0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹159 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

3.08x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.33

Profitable

Profitable on a per-share basis

ROE

22.1%

Strong

Strong capital efficiency

ROCE

26.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

-3.52x

Low

Conservative leverage

Revenue Growth (YoY)

-7.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-3.6%

Falling

Profits are shrinking

Dividend Yield

2.07%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.6%

Average

Average margins

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

3.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

136.6 / 137.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹68 Cr	₹71 Cr	₹69 Cr	₹77 Cr	+4.1%
EBITDA	₹4 Cr	₹7 Cr	₹9 Cr	₹13 Cr	+41.6%
EBITDA Margin	6.5%	10.6%	12.6%	16.3%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹6 Cr	₹11 Cr	+90.5%
EPS	₹1.5	₹3.65	₹5.15	₹10.4	+90.7%
ROE	4.7%	10.2%	13.1%	22.1%	—
ROCE	7.5%	14.4%	16.9%	26.9%	—
Total Debt	-₹2 Cr	-₹1 Cr	-₹3 Cr	-₹2 Cr	—
Free Cash Flow	₹7 Cr	-₹0 Cr	₹4 Cr	-₹3 Cr	—

🟢 Revenue has grown at 4.1% a year over 3 years.

🟢 EBITDA has grown at 41.6% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 16.3% over 3 years (+9.8 pts).

🟢 PAT (Net Profit) has grown at 90.5% a year over 3 years.

🟢 EPS has grown at 90.7% a year over 3 years.

🟢 ROE has risen from 4.7% to 22.1% over 3 years (+17.4 pts).

🟢 ROCE has risen from 7.5% to 26.9% over 3 years (+19.5 pts).

🔴 Free Cash Flow has turned negative, from ₹7 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.1%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 positive1 mixed3 general

Krishanveer Forge Share Price Rise: Valuation and Peers

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Krishanveer Forge Limited News — BSE:KVFORGE

TradingView, 13 Oct

Krishanveer Forge FY26 net profit rises 102% to ₹113.77 crore

scanx.trade, 27 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Krishanveer Forge Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 29 Sept

Krishanveer Forge declares ₹3 dividend; sets September 18 AGM

scanx.trade, 18 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Krishanveer Forge Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 24 Sept

Watch Items

Revenue growth is negative (-7.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑