Check Before You Invest : KSE Ltd

Snapshot

Q.1 Which industry/sub-sector does KSE Ltd belong to?

KSE Ltd belongs to the FMCG sector, operating specifically within the Animal Feed segment.

Q.2 Is KSE Ltd a good quality company?

KSE Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is KSE Ltd undervalued or overvalued?

KSE Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is KSE Ltd a good buy now?

KSE 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 KSE Ltd?

KSE Ltd revenue growth is -2% for FY-2025, which is below its 5-year CAGR of 2.92%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of KSE Ltd?

KSE Ltd Return on capital employed is 44.19% for FY-2025, which is above its 5-year historical median of 11.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of KSE Ltd?

KSE Ltd Return on Asset is 28.82%, which is above its 5-year historical median of 6.46%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of KSE Ltd?

KSE Ltd Return on equity is 35.01% for FY-2025, which is above its 5-year historical median of 8.02%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of KSE Ltd?

KSE Ltd Cash conversion cycle is 28 days, in line with its 5-year historical median of 28 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	5.21	5.87
ROE	35.01	8.02
ROCE	44.19	11.34
Cash Conversion Cycle	28 days	28 days

Q.6 Gross Profit margin of KSE Ltd?

KSE Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.6% for FY-2025, which is above its 5-year median of 2%, indicating increasing margins.

Q.7 Operating Profit Margin of KSE Ltd?

KSE Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.29% for FY-2025, which is above its 5-year median of 1.9% indicating increasing margins.

Q.8 Net Profit Margin of KSE Ltd?

KSE Ltd Net Profit Margin is 5.54% for FY-2025, is above with its 5-year median of 1.05%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.6	2
Operating Profit Margin	7.29	1.9
Net Profit Margin	5.54	1.05

Q.9 Debt to Equity ratio of KSE Ltd?

KSE Ltd Debt-to-Equity ratio is 0.08, which is lower with the industry average of 0.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of KSE Ltd?

KSE Ltd Debt to cash flow from operations is 0.17, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KSE Ltd?

Promoters hold 22.94% of the KSE Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KSE Ltd vs industry peers?

KSE Ltd revenue CAGR is 2.92%, compared to the industry median CAGR of 6.14%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2	6.1
Gross Profit Growth	281.8	8.8
Operating Profit Growth	275	10.7
Net Profit Growth	405.6	7.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	5.21	1.76
ROE	35.01	12.91
ROCE	44.19	11.94
Cash Conversion Cycle (days)	27.84	31

Valuation & price assessment

Q.1 Stock return of KSE Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	14.1%	-0.2%	7%	11.3%

Q.3 Valuation ratios of KSE 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	5.34	11.93	20.37
Price to Book	1.78	2.73	2.73
Price to Sales	0.39	0.40	1.07
EV to EBITDA	3.78	12.50	14.06

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