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Check Before You Invest : K&R Rail Engineering Ltd

BSE: 514360 NSE: ISIN: INE078T01026
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does K&R Rail Engineering Ltd belong to?
K&R Rail Engineering Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is K&R Rail Engineering Ltd a good quality company?
K&R Rail Engineering Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is K&R Rail Engineering Ltd undervalued or overvalued?
K&R Rail Engineering Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is K&R Rail Engineering Ltd a good buy now?
K&R Rail Engineering 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 K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd revenue growth is 4.5% for FY-2025 , which is below its 5 year CAGR of 37.7% , indicating slower growth.
Q.2 Gross Profit margin of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.6% for FY-2025 , which is below its 5 year median of 3.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.66% for FY-2025 , which is below its 5 year median of 3.83% indicating decreasing margins.
Q.4 Net Profit Margin of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Net Profit Margin is 0.85% for FY-2025 , is below with its 5 year median of 1.7%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 1.6 3.4
Operating Profit Margin 1.66 3.83
Net Profit Margin 0.85 1.7
Q.5 Return on Asset of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Return on Asset is 2.35%, which is below its 5 year historical median of 3.85%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Return on equity is 9.73% for FY-2025 , which is below its historical median of 13.23%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Return on capital employed is 9.6% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Cash conversion cycle is 17 days, below its historical median of 52 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.75 2.27
ROE 9.73 13.23
ROCE 9.6 12.18
Cash Conversion Cycle 17 days 52 days
Q.9 Debt to Equity ratio of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.38 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of K&R Rail Engineering Ltd?
K&R Rail Engineering Ltd Debt to cash flow from operations is -0.01 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of K&R Rail Engineering Ltd?
Promoters hold 49.50% of the K&R Rail Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of K&R Rail Engineering Ltd vs industry peers?
K&R Rail Engineering Ltd revenue CAGR is 37.71% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 640 103.6
Gross Profit 10.2 5.2
Operating Profit 11 6
Net Profit 5 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.75 0.63
ROE 9.73 6.64
ROCE 9.6 11.13
Cash Conversion Cycle (days) 16.98 51

Valuation & price assessment

Q.1 Stock return of K&R Rail Engineering 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 14.1% 18.9% -55.3% -76.9%
Q.3 Valuation ratios of K&R Rail Engineering Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 23.43 27.03
Price to Book 1.44 3.46 1.70
Price to Sales 0.39 0.73 1.45
EV to EBITDA -13.51 12.54 11.36

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