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Check Before You Invest : Kriti Industries (India) Ltd

BSE: 526423 NSE: KRITI ISIN: INE479D01038
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Kriti Industries (India) Ltd belong to?
Kriti Industries (India) Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Kriti Industries (India) Ltd a good quality company?
Kriti Industries (India) Ltd is a good quality company, based on a consistently good 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 Kriti Industries (India) Ltd undervalued or overvalued?
Kriti Industries (India) 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 430.02 15.64
Price to Book 2.08 3.76
Price to Sales 0.78 0.78
EV to EBITDA 13.98 12.61
Q.4 Is Kriti Industries (India) Ltd a good buy now?
Kriti Industries (India) 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 Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd revenue growth is -16.7% for FY-2025, which is below its 5-year CAGR of 6.21%, indicating slower growth.

Q.2 Gross Profit margin of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.1% for FY-2025, which is below its 5-year median of 4.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.93% for FY-2025, which is below its 5-year median of 6.86% indicating decreasing margins.

Q.4 Net Profit Margin of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Net Profit Margin is -0.62% for FY-2025, is below its 5-year median of 2.47%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.1 4.8
Operating Profit Margin (%) 3.93 6.86
Net Profit Margin (%) -0.62 2.47

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Return on Asset is -0.96%, which is below its 5-year historical median of 3.63%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Return on capital employed is 5.91% for FY-2025, which is below its 5-year historical median of 13.99%. 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 Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Return on equity is -2.82% for FY-2025, which is below its 5-year historical median of 9.51%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Cash conversion cycle is 42 days, in line with its 5-year historical median of 42 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 (x) 1.54 1.66
ROE (%) -2.82 9.51
ROCE (%) 5.91 13.99
Cash Conversion Cycle 42 days 42 days

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

Q.9 Debt to Equity ratio of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Debt-to-Equity ratio is 0.64, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kriti Industries (India) Ltd?
Kriti Industries (India) Ltd Debt to cash flow from operations is 3.2, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kriti Industries (India) Ltd?

Q.1 Promoter shareholding and pledge status of Kriti Industries (India) Ltd?
Promoters hold 69.07% of the Kriti Industries (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kriti Industries (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kriti Industries (India) Ltd vs industry peers?
Kriti Industries (India) Ltd revenue CAGR is 6.21%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -16.7 4.7
Gross Profit Growth (%) -81 14.3
Operating Profit Growth (%) -52.5 10.1
Net Profit Growth (%) -119.1 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.54 1.06
ROE (%) -2.82 5.91
ROCE (%) 5.91 8.75
Cash Conversion Cycle (days) 41.51 77

Valuation & price assessment

Q.1 Stock return of Kriti Industries (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
9.7% 3.9% -6.2% -24.1%
Q.2 Valuation ratios of Kriti Industries (India) Ltd vs historical?
The current P/E ratio of 430.02 is higher than its historical median of 15.64, 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 430.02 15.64 22.05
Price to Book 2.08 3.76 1.89
Price to Sales 0.78 0.78 1.33
EV to EBITDA 13.98 12.61 10.86

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