Check Before You Invest : Kanishk Steel Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Kanishk Steel Industries Ltd belong to?

Kanishk Steel Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Kanishk Steel Industries Ltd a good quality company?

Kanishk Steel Industries Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Kanishk Steel Industries Ltd undervalued or overvalued?

Kanishk Steel Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Kanishk Steel Industries Ltd a good buy now?

Kanishk Steel 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

Q.1 Revenue growth of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd revenue growth is -7.2% for FY-2025, which is below its 5-year CAGR of 6.96%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Return on capital employed is 13% for FY-2025, which is in line with its 5-year historical median of 12.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Return on Asset is 4.45%, which is below its 5-year historical median of 5.14%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Return on equity is 8.42% for FY-2025, which is below its 5-year historical median of 11.01%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Cash conversion cycle is 45 days, below its 5-year historical median of 50 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	1.92	2.22
ROE	8.42	11.01
ROCE	13	12.87
Cash Conversion Cycle	45 days	50 days

Q.6 Gross Profit margin of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.4% for FY-2025, which is above its 5-year median of 3.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.24% for FY-2025, which is above its 5-year median of 2.39% indicating increasing margins.

Q.8 Net Profit Margin of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Net Profit Margin is 2.31% for FY-2025, is in line with with its 5-year median of 2.32%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.4	3.8
Operating Profit Margin	4.24	2.39
Net Profit Margin	2.31	2.32

Q.9 Debt to Equity ratio of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Debt-to-Equity ratio is 0.24, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Kanishk Steel Industries Ltd?

Kanishk Steel Industries Ltd Debt to cash flow from operations is 18.49, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kanishk Steel Industries Ltd?

Promoters hold 66.82% of the Kanishk Steel Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kanishk Steel Industries Ltd vs industry peers?

Kanishk Steel Industries Ltd revenue CAGR is 6.96%, compared to the industry median CAGR of 11.40%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-7.2	11.4
Gross Profit Growth	77.8	19.8
Operating Profit Growth	14.3	13.9
Net Profit Growth	166.7	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.92	1.33
ROE	8.42	9.64
ROCE	13	12.04
Cash Conversion Cycle (days)	45.49	80

Valuation & price assessment

Q.1 Stock return of Kanishk Steel Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 25.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	25.5%	37.5%	35.3%	80.2%

Q.3 Valuation ratios of Kanishk Steel Industries Ltd vs historical?

The current P/E is higher 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	45.58	7.70	17.26
Price to Book	1.61	1.01	1.63
Price to Sales	0.45	0.25	0.74
EV to EBITDA	16.96	6.18	10.03

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