Khandelwal Extractions Limited

Real Estate — Real Estate Services · BSE

₹187.00₹0.00 (0.00%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Khandelwal Extractions Limited engages in the factory leasing business in India. The company was incorporated in 1981 and is based in Kanpur, India.

IndustryReal Estate Services

SectorReal Estate

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹35 reaches shareholders as profit, with ₹51 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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?Little sign of one

Returns on capital of 9.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

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 +24% 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+24%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 64.0x is demanding — it needs sustained high growth to justify
✗ P/E is 133% above its own historical median of 27.5x — expensive by its own standards
✗ P/B of 5.10x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

23/ 100

Expensive

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

64.0x

3Y Median

27.5x

40 monthly readings · mean 34.1x · range 18.0x–77.7x

Sector Median

30.2x

median of 3 sector peers

⚠️Current valuation is approximately 133% above its 3y median of 27.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 112% above the peer median of 30.2x.

vs. its own history

Expensive

27.5x median over 40 months · +133%

vs. sector peers

Expensive

30.2x median of 3 peers · +112%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

51.8x

PEG

25.25

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 16.2% to 9.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.1 points, from 58.5% to 51.4%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 58.5% to 51.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 133% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 49%✓ 51.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✓ 9.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 27.5x✗ 64.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

4 good · 4 neutral · 3 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

64.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.10x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.92

Profitable

Profitable on a per-share basis

ROE

6.7%

Weak

Weak capital efficiency

ROCE

9.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

38.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

83.3%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

33.6%

Good

Healthy core-business profitability

Net Margin

38.1%

Good

Strong bottom-line conversion

Current Ratio

3.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.92

Defensive

Steadier than the market

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

185.0 / 172.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-4.5%
EBITDA	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-8.5%
EBITDA Margin	58.5%	70.3%	59.5%	51.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+2.5%
EPS	₹2.29	₹4	₹3.48	₹2.47	+2.6%
ROE	8.5%	13.0%	10.1%	6.7%	—
ROCE	16.2%	19.8%	14.0%	9.0%	—
Total Debt	₹1 Cr	₹0 Cr	—	—	—
Free Cash Flow	-₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 4.5% a year over 3 years.

🔴 EBITDA has shrunk at 8.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 58.5% to 51.4% over 3 years (-7.1 pts).

🟢 PAT (Net Profit) has grown at 2.5% a year over 3 years.

🟢 EPS has grown at 2.6% a year over 3 years.

🔴 ROE has fallen from 8.5% to 6.7% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 16.2% to 9.0% over 3 years (-7.2 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

3.9%

Insider Holding

39.5%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive1 negative4 general

Khandelwal Extractions Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Khandelwal Extractions closes trading window from Oct 1, 2026

scanx.trade, 01 Oct

KHANDELWAL EXTRACTION LTD. Share Price - Live ZKHANDEN Stock Price & Chart

Upstox, 04 Apr

Signet Industries standalone net profit rises 1066.67% in the June 2026 quarter

Business Standard, 13 AugResults

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

Khandelwal Extractions AGM on Sep 26; FY26 profit falls 29%

scanx.trade, 26 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Khandelwal Extractions passes FY26 financials, re-appoints director at AGM

scanx.trade, 28 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth · Valuation

Points for each in the Score ↑

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.

1 of 4 tripwires tripped — Valuation vs its own median of 27.5x · see Key things to watch ↑