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Check Before You Invest : KBS India Ltd

BSE: 530357 NSE: ISIN: INE883D01023
  |   Sector:  BFSI   |   Industry:  Finance - Stock Broking

Snapshot

Q.1 Which industry/sub-sector does KBS India Ltd belong to?
KBS India Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.
Q.2 Is KBS India Ltd a good quality company?
KBS India Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is KBS India Ltd undervalued or overvalued?
KBS India Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 56.29 38.86
Price to Book 0.41 2.02
Price to Sales 4.96 28.14
EV to EBITDA 16.85 18.98
Q.4 Is KBS India Ltd a good buy now?
KBS India Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of KBS India Ltd?
KBS India Ltd revenue growth is 36.2% for FY-2025, which is above its 5-year CAGR of 22.76%, indicating faster growth.

Q.2 Gross Profit margin of KBS India Ltd?
KBS India Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.1% for FY-2025, which is above its 5-year median of 20%, indicating increasing margins.

Q.3 Operating Profit Margin of KBS India Ltd?
KBS India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -22.53% for FY-2025, which is below its 5-year median of -14.99% indicating decreasing margins.

Q.4 Net Profit Margin of KBS India Ltd?
KBS India Ltd Net Profit Margin is 7.46% for FY-2025, is in line with its 5-year median of 7.46%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 25.1 20
Operating Profit Margin (%) -22.53 -14.99
Net Profit Margin (%) 7.46 7.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of KBS India Ltd?
KBS India Ltd Return on Asset is 0.5%, which is in line with its 5-year historical median of 0.5%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of KBS India Ltd?
KBS India Ltd Return on capital employed is 1.4% for FY-2025, which is above its 5-year historical median of 0.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of KBS India Ltd?
KBS India Ltd Return on equity is 0.6% for FY-2025, which is in line with its 5-year historical median of 0.6%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of KBS India Ltd?
KBS India Ltd Cash conversion cycle is -126 days, in line with its 5-year historical median of -126 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.07 0.05
ROE (%) 0.6 0.6
ROCE (%) 1.4 0.8
Cash Conversion Cycle -126 days -126 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of KBS India Ltd?
KBS India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of KBS India Ltd?
KBS India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of KBS India Ltd?

Q.1 Promoter shareholding and pledge status of KBS India Ltd?
Promoters hold 28.77% of the KBS India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does KBS India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of KBS India Ltd vs industry peers?
KBS India Ltd revenue CAGR is 22.76%, compared to the industry median CAGR of 16.32%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 36.2 16.3
Gross Profit Growth (%) 68.6 24.7
Operating Profit Growth (%) 0 36
Net Profit Growth (%) 157.1 24.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.07 0.26
ROE (%) 0.6 7.6
ROCE (%) 1.4 10.2
Cash Conversion Cycle (days) -126.1 -82

Valuation & price assessment

Q.1 Stock return of KBS India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
21.8% 27.7% -50.3% -78.3%
Q.2 Valuation ratios of KBS India Ltd vs historical?
The current P/E ratio of 56.29 is higher than its historical median of 38.86, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 56.29 38.86 19.96
Price to Book 0.41 2.02 1.64
Price to Sales 4.96 28.14 5.31
EV to EBITDA 16.85 18.98 6.93

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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