Check Before You Invest : Krishna Defence and Allied Industries Ltd

Q: Which industry/sub-sector does Krishna Defence and Allied Industries Ltd belong to?

Krishna Defence and Allied Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.

Q: Is Krishna Defence and Allied Industries Ltd a good quality company?

Krishna Defence and Allied Industries Ltd is a weak quality company, based on a inconsistent 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: Is Krishna Defence and Allied Industries Ltd undervalued or overvalued?

Krishna Defence and Allied Industries Ltd appears 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. Price to Earnings, Current: 45.4, Historic Median: 65.61. Price to Book, Current: 12.81, Historic Median: 9.11. Price to Sales, Current: 7.07, Historic Median: 6.16. EV to EBITDA, Current: 30.78, Historic Median: 35.79

Q: Is Krishna Defence and Allied Industries Ltd a good buy now?

Krishna Defence and Allied Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd revenue growth is 83.1% for FY-2025, which is above its 5-year CAGR of 50.8%, indicating faster growth.

Q: Gross Profit margin of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is above its 5-year median of 13.7%, indicating increasing margins.

Q: Operating Profit Margin of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.9% for FY-2025, which is above its 5-year median of 14.16% indicating increasing margins.

Q: Net Profit Margin of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Net Profit Margin is 11.25% for FY-2025, is above its 5-year median of 8.32%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.6, Historic Median: 13.7. Operating Profit Margin (%), Current: 15.9, Historic Median: 14.16. Net Profit Margin (%), Current: 11.25, Historic Median: 8.32

Q: Return on Asset of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Return on Asset is 14.8%, which is above its 5-year historical median of 6.95%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Return on capital employed is 24.32% for FY-2025, which is above its 5-year historical median of 15.01%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Krishna Defence and Allied Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Krishna Defence and Allied Industries Ltd belong to?

Krishna Defence and Allied Industries Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.

Q.2 Is Krishna Defence and Allied Industries Ltd a good quality company?

Krishna Defence and Allied Industries Ltd is a weak quality company, based on a inconsistent 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 Krishna Defence and Allied Industries Ltd undervalued or overvalued?

Krishna Defence and Allied Industries Ltd appears 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	45.4	65.61
Price to Book	12.81	9.11
Price to Sales	7.07	6.16
EV to EBITDA	30.78	35.79

Q.4 Is Krishna Defence and Allied Industries Ltd a good buy now?

Krishna Defence and Allied Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd revenue growth is 83.1% for FY-2025, which is above its 5-year CAGR of 50.8%, indicating faster growth.

Q.2 Gross Profit margin of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is above its 5-year median of 13.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.9% for FY-2025, which is above its 5-year median of 14.16% indicating increasing margins.

Q.4 Net Profit Margin of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Net Profit Margin is 11.25% for FY-2025, is above its 5-year median of 8.32%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	16.6	13.7
Operating Profit Margin (%)	15.9	14.16
Net Profit Margin (%)	11.25	8.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Return on Asset is 14.8%, which is above its 5-year historical median of 6.95%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Return on capital employed is 24.32% for FY-2025, which is above its 5-year historical median of 15.01%. 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 Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Return on equity is 19.69% for FY-2025, which is above its 5-year historical median of 14.47%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Cash conversion cycle is 116 days, below its 5-year historical median of 142 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.32	0.83
ROE (%)	19.69	14.47
ROCE (%)	24.32	15.01
Cash Conversion Cycle	116 days	142 days

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

Q.9 Debt to Equity ratio of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Debt-to-Equity ratio is 0.08, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Krishna Defence and Allied Industries Ltd?

Krishna Defence and Allied Industries Ltd Debt to cash flow from operations is -0.83, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Krishna Defence and Allied Industries Ltd?

Q.1 Promoter shareholding and pledge status of Krishna Defence and Allied Industries Ltd?

Promoters hold 59.96% of the Krishna Defence and Allied Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Krishna Defence and Allied Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Krishna Defence and Allied Industries Ltd vs industry peers?

Krishna Defence and Allied Industries Ltd revenue CAGR is 50.80%, compared to the industry median CAGR of 17.94%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	83.1	17.9
Gross Profit Growth (%)	113.3	30.8
Operating Profit Growth (%)	93.8	31.2
Net Profit Growth (%)	120	33.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.32	0.56
ROE (%)	19.69	11.9
ROCE (%)	24.32	14.13
Cash Conversion Cycle (days)	116.5	150

Valuation & price assessment

Q.1 Stock return of Krishna Defence and Allied Industries Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 84.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	84.5%	40.3%

Q.2 Valuation ratios of Krishna Defence and Allied Industries Ltd vs historical?

The current P/E ratio of 45.4 is lower than its historical median of 65.61, indicating that the stock is trading below 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	45.4	65.61	64.82
Price to Book	12.81	9.11	7.10
Price to Sales	7.07	6.16	8.19
EV to EBITDA	30.78	35.79	33.96

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Check Before You Invest : Krishna Defence and Allied Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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