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Check Before You Invest : KCL Infra Projects Ltd

BSE: 531784 NSE: ISIN: INE469F01026
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does KCL Infra Projects Ltd belong to?
KCL Infra Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is KCL Infra Projects Ltd a good quality company?
KCL Infra Projects Ltd is a quality company, based on a 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 KCL Infra Projects Ltd undervalued or overvalued?
KCL Infra Projects Ltd appears Fair, as its key valuation ratios are in line with 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 15.29 48.35
Price to Book 0.39 0.48
Price to Sales 0.94 2.37
EV to EBITDA 9.92 22.50
Q.4 Is KCL Infra Projects Ltd a good buy now?
KCL Infra Projects 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 KCL Infra Projects Ltd?
KCL Infra Projects Ltd revenue growth is 42.2% for FY-2025, which is above its 5-year CAGR of -2.86%, indicating faster growth.

Q.2 Gross Profit margin of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.6% for FY-2025, which is above its 5-year median of 5.8%, indicating increasing margins.

Q.3 Operating Profit Margin of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -14.66% for FY-2025, which is below its 5-year median of -5% indicating decreasing margins.

Q.4 Net Profit Margin of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Net Profit Margin is 4.28% for FY-2025, is above its 5-year median of 4.02%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.6 5.8
Operating Profit Margin (%) -14.66 -5
Net Profit Margin (%) 4.28 4.02

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Return on Asset is 0.77%, which is below its 5-year historical median of 1.23%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Return on capital employed is 2.23% for FY-2025, which is below its 5-year historical median of 3.53%. 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 KCL Infra Projects Ltd?
KCL Infra Projects Ltd Return on equity is 0.95% for FY-2025, which is below its 5-year historical median of 1.84%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Cash conversion cycle is 139 days, below its 5-year historical median of 197 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) 0.18 0.18
ROE (%) 0.95 1.84
ROCE (%) 2.23 3.53
Cash Conversion Cycle 139 days 197 days

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

Q.9 Debt to Equity ratio of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Debt-to-Equity ratio is 0.07, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of KCL Infra Projects Ltd?
KCL Infra Projects Ltd Debt to cash flow from operations is 0.38, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of KCL Infra Projects Ltd?

Q.1 Promoter shareholding and pledge status of KCL Infra Projects Ltd?
Promoters hold 22.88% of the KCL Infra Projects Ltd, with 0.16% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does KCL Infra Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of KCL Infra Projects Ltd vs industry peers?
KCL Infra Projects Ltd revenue CAGR is -2.86%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 42.2 0
Gross Profit Growth (%) -37 14.9
Operating Profit Growth (%) 0 10.4
Net Profit Growth (%) -40.2 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.18 0.1
ROE (%) 0.95 1.36
ROCE (%) 2.23 3.88
Cash Conversion Cycle (days) 139.03 439

Valuation & price assessment

Q.1 Stock return of KCL Infra Projects Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
8% 21.9% -10.3% -2.9%
Q.2 Valuation ratios of KCL Infra Projects Ltd vs historical?
The current P/E ratio of 15.29 is lower than its historical median of 48.35, 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 15.29 48.35 33.43
Price to Book 0.39 0.48 1.53
Price to Sales 0.94 2.37 5.23
EV to EBITDA 9.92 22.50 14.43

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