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Check Before You Invest : KPT Industries Ltd

BSE: 505299 NSE: ISIN: INE731D01024
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does KPT Industries Ltd belong to?
KPT Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is KPT Industries Ltd a good quality company?
KPT Industries Ltd is a good quality company, based on a consistently good 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 KPT Industries Ltd undervalued or overvalued?
KPT Industries Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 15.03 14.89
Price to Book 2.4 2.73
Price to Sales 1.13 0.92
EV to EBITDA 8.23 8.09
Q.4 Is KPT Industries Ltd a good buy now?
KPT Industries 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 KPT Industries Ltd?
KPT Industries Ltd revenue growth is 9.5% for FY-2025, which is in line with its 5-year CAGR of 9.4%, indicating stable growth.

Q.2 Gross Profit margin of KPT Industries Ltd?
KPT Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025, which is above its 5-year median of 10%, indicating increasing margins.

Q.3 Operating Profit Margin of KPT Industries Ltd?
KPT Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.97% for FY-2025, which is above its 5-year median of 12.51% indicating increasing margins.

Q.4 Net Profit Margin of KPT Industries Ltd?
KPT Industries Ltd Net Profit Margin is 8.39% for FY-2025, is above its 5-year median of 5.62%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13 10
Operating Profit Margin (%) 15.97 12.51
Net Profit Margin (%) 8.39 5.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of KPT Industries Ltd?
KPT Industries Ltd Return on Asset is 11.89%, which is above its 5-year historical median of 9.19%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of KPT Industries Ltd?
KPT Industries Ltd Return on capital employed is 25.88% for FY-2025, which is above its 5-year historical median of 23.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of KPT Industries Ltd?
KPT Industries Ltd Return on equity is 22.51% for FY-2025, which is above its 5-year historical median of 21.14%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of KPT Industries Ltd?
KPT Industries Ltd Cash conversion cycle is 144 days, in line with its 5-year historical median of 141 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) 1.48 1.48
ROE (%) 22.51 21.14
ROCE (%) 25.88 23.23
Cash Conversion Cycle 144 days 141 days

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

Q.9 Debt to Equity ratio of KPT Industries Ltd?
KPT Industries Ltd Debt-to-Equity ratio is 0.33, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of KPT Industries Ltd?
KPT Industries Ltd Debt to cash flow from operations is 1.05, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of KPT Industries Ltd?

Q.1 Promoter shareholding and pledge status of KPT Industries Ltd?
Promoters hold 44.48% of the KPT Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does KPT Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of KPT Industries Ltd vs industry peers?
KPT Industries Ltd revenue CAGR is 9.40%, compared to the industry median CAGR of 3.61%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 9.5 3.6
Gross Profit Growth (%) 10 23
Operating Profit Growth (%) 8.3 21.7
Net Profit Growth (%) 16.7 26.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.48 0.89
ROE (%) 22.51 11.8
ROCE (%) 25.88 14.41
Cash Conversion Cycle (days) 143.62 99

Valuation & price assessment

Q.1 Stock return of KPT Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
31.5% 37.8% 13.3% -28.7%
Q.2 Valuation ratios of KPT Industries Ltd vs historical?
The current P/E ratio of 15.03 is in line with than its historical median of 14.89, indicating that the stock is trading near 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 15.03 14.89 29.36
Price to Book 2.4 2.73 2.91
Price to Sales 1.13 0.92 2.93
EV to EBITDA 8.23 8.09 15.77

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