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Check Before You Invest : B.L. Kashyap and Sons Ltd

BSE: 532719 NSE: BLKASHYAP ISIN: INE350H01032
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does B.L. Kashyap and Sons Ltd belong to?
B.L. Kashyap and Sons Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is B.L. Kashyap and Sons Ltd a good quality company?
B.L. Kashyap and Sons Ltd is a average quality company, based on a somewhat consistent 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 B.L. Kashyap and Sons Ltd undervalued or overvalued?
B.L. Kashyap and Sons 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 44.26 29.87
Price to Book 1.83 1.52
Price to Sales 1.06 0.90
EV to EBITDA 18.64 13.30
Q.4 Is B.L. Kashyap and Sons Ltd a good buy now?
B.L. Kashyap and Sons 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 B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd revenue growth is -5.9% for FY-2025, which is below its 5-year CAGR of 7.58%, indicating slower growth.

Q.2 Gross Profit margin of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.8% for FY-2025, which is below its 5-year median of 5%, indicating decreasing margins.

Q.3 Operating Profit Margin of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.88% for FY-2025, which is below its 5-year median of 8.24% indicating decreasing margins.

Q.4 Net Profit Margin of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Net Profit Margin is 3.14% for FY-2025, is in line with its 5-year median of 3.14%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.8 5
Operating Profit Margin (%) 5.88 8.24
Net Profit Margin (%) 3.14 3.14

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Return on Asset is 2.25%, which is in line with its 5-year historical median of 2.33%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Return on capital employed is 9.67% for FY-2025, which is in line with its 5-year historical median of 10.1%. 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 B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Return on equity is 5.15% for FY-2025, which is in line with its 5-year historical median of 5.27%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Cash conversion cycle is 85 days, below its 5-year historical median of 160 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) 0.71 0.76
ROE (%) 5.15 5.27
ROCE (%) 9.67 10.1
Cash Conversion Cycle 85 days 160 days

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

Q.9 Debt to Equity ratio of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Debt-to-Equity ratio is 0.41, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of B.L. Kashyap and Sons Ltd?
B.L. Kashyap and Sons Ltd Debt to cash flow from operations is 3.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of B.L. Kashyap and Sons Ltd?

Q.1 Promoter shareholding and pledge status of B.L. Kashyap and Sons Ltd?
Promoters hold 61.72% of the B.L. Kashyap and Sons Ltd, with 99.34% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does B.L. Kashyap and Sons Ltd performance compare with that of its Peers?

Q.1 Revenue growth of B.L. Kashyap and Sons Ltd vs industry peers?
B.L. Kashyap and Sons Ltd revenue CAGR is 7.58%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -5.9 0
Gross Profit Growth (%) -27.1 14.9
Operating Profit Growth (%) -30.9 10.4
Net Profit Growth (%) 2.9 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.71 0.1
ROE (%) 5.15 1.36
ROCE (%) 9.67 3.88
Cash Conversion Cycle (days) 85.04 439

Valuation & price assessment

Q.1 Stock return of B.L. Kashyap and Sons Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
11.7% 27.3% 14.5% -6.8%
Q.2 Valuation ratios of B.L. Kashyap and Sons Ltd vs historical?
The current P/E ratio of 44.26 is higher than its historical median of 29.87, 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 44.26 29.87 33.43
Price to Book 1.83 1.52 1.53
Price to Sales 1.06 0.90 5.23
EV to EBITDA 18.64 13.30 14.43

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