K. V. Toys India Limited

Consumer Cyclical — Leisure · BSE

₹257.00−₹1.35 (−0.52%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

K. V. Toys India Limited engages in the business of contract manufacturing and sale of plastic-molded and metal-based toys for children in India.

IndustryLeisure

SectorConsumer Cyclical

Employees62

Annual revenue₹175 Cr

How does it make money?

Turns over ₹175 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 62 employees supports ₹2.82 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.3%

Net margin5.0%

Revenue / employee₹2.82 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Some evidence

ROCE of 19.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.2%

ROE27.4%

Peer median ROE25.9%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

62/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.0x

1.0Y Median

36.9x

12 monthly readings · mean 36.4x · range 25.5x–43.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 59% below its 1.0y median of 36.9x. 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 78% below the peer median of 69.2x.

vs. its own history

Cheap

36.9x median over 12 months · -59%

vs. sector peers

Cheap

69.2x median of 4 peers · -78%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.0x

P/B

2.95x

EV/EBITDA

12.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from -3.7% to 19.2%.
Valuation below its historical average
At 15.0x the stock trades 59% below its own median of 36.9x.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Debt is rising
Total debt is up 37% over 2 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Debt is increasingFinancial
Total debt is up 37% over 2 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.2% 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.
Priced below its own history
The stock trades 59% 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.
Cheaper than its peers
It trades 78% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 16%✓ 19.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 36.9x✓ 15.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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 · 4 neutral · 1 weak

Market Cap

₹161 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.95x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.11

Profitable

Profitable on a per-share basis

ROE

27.4%

Strong

Strong capital efficiency

ROCE

19.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

104.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

90.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹257

ROA

11.7%

Good

Assets are working hard

Operating Margin

7.0%

Average

Average margins

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

5.29

Comfortable

Healthy short-term liquidity

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

267.9 / 272.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.0

Neutral momentum

Financial Trend (3-Year)

Metric	FY24	FY25	FY26	2Y CAGR
Revenue	—	₹86 Cr	₹175 Cr	—
EBITDA	-₹0 Cr	₹6 Cr	₹13 Cr	—
EBITDA Margin	—	7.4%	7.3%	—
PAT (Net Profit)	-₹0 Cr	₹5 Cr	₹9 Cr	—
EPS	₹-0.17	₹7.31	—	—
ROE	—	50.5%	16.0%	—
ROCE	-3.7%	31.3%	19.2%	—
Total Debt	₹9 Cr	₹24 Cr	₹13 Cr	+17.2%
Free Cash Flow	-₹0 Cr	-₹19 Cr	-₹15 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹13 Cr.

🟡 EBITDA Margin has held roughly flat at 7.3% over 2 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹9 Cr.

🔴 ROE has fallen from 50.5% to 16.0% over 2 years (-34.6 pts).

🟢 ROCE has risen from -3.7% to 19.2% over 2 years (+22.8 pts).

🔴 Total Debt has grown at 17.2% a year over 2 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹83 Cr

Total Liabilities

₹28 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.2%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

K.V. Toys India Ltd. IPO Allotment Status: Check Overall Subscription & Steps to Verify Status

Groww, 10 Dec

K.V. Toys India IPO listing: Shares off to a solid start, debut at 34% premium on BSE SME

Livemint, 15 Dec

KV Toys India shares list at 34% premium over IPO price on BSE SME

The Economic Times, 15 Dec

Strong market debut: KV Toys India shares list at 34% premium to SME IPO price

Moneycontrol.com, 15 Dec

K. V. Toys India AGM resolutions pass with unanimous shareholder support

scanx.trade, 17 Aug

KV Toys India IPO allotment: How to check status online on BSE, Purva Sharegistry; listing date, time revealed

Upstox, 10 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong13/20

🟡GrowthModest10/20

🟢ProfitabilityStrong11.5/15

🟢ValuationAttractive10.7/15

🔴RiskHigh2.5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 5%7.3%
✗Free cash flow remains positive-₹15 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 16%19.2%
✓Valuation vs its own median of 36.9x15.0x today