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Check Before You Invest : Khaitan (India) Ltd

BSE: 590068 NSE: KHAITANLTD ISIN: INE731C01018
  |   Sector:  Consumer Durables   |   Industry:  Consumer Durables - Electronics

Snapshot

Q.1 Which industry/sub-sector does Khaitan (India) Ltd belong to?
Khaitan (India) Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.
Q.2 Is Khaitan (India) Ltd a good quality company?
Khaitan (India) Ltd is a quality company, based on a 10-year financial track record.
Q.3 Is Khaitan (India) Ltd undervalued or overvalued?
Khaitan (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Khaitan (India) Ltd a good buy now?
Khaitan (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

Q.1 Revenue growth of Khaitan (India) Ltd?
Khaitan (India) Ltd revenue growth is 33% for FY-2025, which is above its 5-year CAGR of 6.5%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of Khaitan (India) Ltd?
Khaitan (India) Ltd Return on capital employed is 27.75% for FY-2025, which is above its 5-year historical median of 11.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of Khaitan (India) Ltd?
Khaitan (India) Ltd Return on Asset is 9.93%, which is above its 5-year historical median of 0.92%, indicating improved asset utilization efficiency.
Q.4 Return on Equity (ROE) of Khaitan (India) Ltd?
Khaitan (India) Ltd Return on equity is 29.31% for FY-2025, which is above its 5-year historical median of 3.76%, indicating the business is making better use of its shareholders capital.
Q.5 Cash conversion cycle of Khaitan (India) Ltd?
Khaitan (India) Ltd Cash conversion cycle is -55 days, in line with its 5-year historical median of -54 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 1.1 0.8
ROE 29.31 3.76
ROCE 27.75 11.99
Cash Conversion Cycle -55 days -54 days
Q.6 Gross Profit margin of Khaitan (India) Ltd?
Khaitan (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.7% for FY-2025, which is above its 5-year median of 3.1%, indicating increasing margins.
Q.7 Operating Profit Margin of Khaitan (India) Ltd?
Khaitan (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.4% for FY-2025, which is above its 5-year median of 4.12% indicating increasing margins.
Q.8 Net Profit Margin of Khaitan (India) Ltd?
Khaitan (India) Ltd Net Profit Margin is 8.99% for FY-2025, is above with its 5-year median of 1.14%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 9.7 3.1
Operating Profit Margin 9.4 4.12
Net Profit Margin 8.99 1.14
Q.9 Debt to Equity ratio of Khaitan (India) Ltd?
Khaitan (India) Ltd Debt-to-Equity ratio is 0.39, which is above with the industry average of 0.36, indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Khaitan (India) Ltd?
Khaitan (India) Ltd Debt to cash flow from operations is 2.17, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Khaitan (India) Ltd?
Promoters hold 60.24% of the Khaitan (India) Ltd, with 32.85% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Khaitan (India) Ltd vs industry peers?
Khaitan (India) Ltd revenue CAGR is 6.50%, compared to the industry median CAGR of 6.50%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 33 6.5
Gross Profit Growth 309.8 NAN
Operating Profit Growth 80 16.2
Net Profit Growth 420.9 NAN
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 1.1 1.13
ROE 29.31 5.4
ROCE 27.75 10
Cash Conversion Cycle (days) -54.91 59

Valuation & price assessment

Q.1 Stock return of Khaitan (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 28.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
28.8% 44% 47.4% 39.3%
Q.3 Valuation ratios of Khaitan (India) Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 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 8.99 14.21 45.77
Price to Book 1.94 1.50 3.45
Price to Sales 0.58 0.48 1.16
EV to EBITDA 7.93 8.91 19.84

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