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KCP Ltd. Stock Analysis

Small Cap
Evaluated by 557 users | BSE: 590066 | NSE: KCP |
Cement & Construction Materials
KCP is a diversified $50 million  business group with interests in heavy engineering, sugar, cement, hydel power, information technology and biotechnology. KCP's cement division has a state-of-the-art cement manufacturing plant at Macherla in Andhra Pradesh. It was India’s 1st...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.68%12.74%8.4%4.32%6.43%9.53%8.43%12.72%6.5%3.85%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3166007006376077508181,0151,142938
Y-o-Y Gr. Rt.-89.9%16.5%-8.9%-4.7%23.5%9.1%24.1%12.5%-17.9%
Adjusted EPS (Rs.) 3.214.742.630.111.343.382.656.763.07-0.51
Y-o-Y Gr. Rt.-47.7%-44.5%-95.8%1118.2%152.2%-21.6%155.1%-54.6%-116.6%
Book Value per Share (Rs.) 23.9126.7327.7327.5727.8330.0531.8736.1638.0636.26
Adjusted Net Profit 41.461.133.91.417.343.634.187.239.5-6.5
Net Op. Cash Flow (Rs. Cr.) 55.582.185.322.513016796.216377.7144
Debt to Cash Flow from Ops 6.314.134.3820.193.462.354.292.937.183.53
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
KCP Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.8%9.1%4.7%-17.9%
Adjusted EPS -181.5%-182.4%-157.7%-116.6%
Book Value per Share 4.75.44.4-4.7
Share Price 10.8% -8% -19.2% -3.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.0717.659.20.394.811.688.5419.888.27-1.36
Operating Profit Margin (%) 21.718.95.919.7616.1119.6617.5815.5710.618.4
Net Profit Margin (%) 13.0810.184.840.222.865.814.178.583.46-0.7
Debt to Equity 1.070.9311.251.251.021.011.031.141.09
Working Capital Days 236142134153161123112102101121
Cash Conversion Cycle 93796248504440333641
Entity Percentage Holding
Promoters 43.76%
Institutions 3.41%
Non-Institutions 52.83%
Pledged *5.435.660.020.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of KCP Ltd.'s performance infers:

KCP Ltd. earnings have declined by -182.4%, whereas share price has depreciated -8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of KCP Ltd. share prices over the last 10 years. Here is what we found out:

KCP Ltd. share price has depreciated 7.2% annually over the past ten years.

KCP is a diversified $50 million  business group with interests in heavy engineering, sugar, cement, hydel power, information technology and biotechnology. KCP's cement division has a state-of-the-art cement manufacturing plant at Macherla in Andhra Pradesh. It was India’s 1st dry process kiln installed in 1958 by HUMBOLDT, Germany even while it was still a prototype in Europe. Strong emphasis on new technology characterizes all operations at KCP’s Macherla

KCP is a diversified $50 million  business group with interests in heavy engineering, sugar, cement, hydel power, information technology and biotechnology. KCP's cement division has a state-of-the-art cement manufacturing plant at Macherla in Andhra Pradesh. It was India’s 1st dry process kiln installed in 1958 by HUMBOLDT, Germany even while it was still a prototype in Europe. Strong emphasis on new technology characterizes all operations at KCP’s Macherla plant.

In 1962 KCP installed a second wet process kiln in collaboration with FIVES LILLIE CAIL, France. KCP’s 100% modernized cement plant with a World Bank funded outlay of Rs 367 million incorporates the latest technology such as the energy-efficient dry process, with a two support kiln and a five stage pre-heater with flash calciner. KCP also incorporates a sophisticated centralized process control system with hardware and software from SIEMENS, Germany.

KCP has successfully designed and built a mobile launch pedestal (MLP) for Indian Space Research Organization's (ISRO) Satish Dhavan Space Centre at Sreeharikotta. It is on such platforms that the launch vehicles will carry the remote sensing satellites and communication satellites. The launch vehicle together with the MLP would weigh around 900 tonne and is a result of the joint initiative by the scientists of the ISRO and KCP Engineers.

The heavy engineering division of The KCP Limited, established in 1955,  is a sprawling, hi-tech complex that can roll out the entire range of heavy mechanical equipment for the core sector industries. This complex is one of the largest, well integrated workshops of its kind and has facilities for casting, fabricating and machining heavy equipment.KCP has a marked presence in the supply of key mechanical machinery to the core sector industries.

When the government of Andhra Pradesh gave private enterprises the opportunity to generate their own power, KCP rose to the challenge by establishing mini-hydel projects on the Guntur Canal. Using innovative technology, KCP developed the most cost effective way to generate power from five different canal drops. The capacity of  four of these power projects is 1.5 megawatts and the fifth is 2.25 megawatts . Construction work for three of these projects are already complete ; the other two projects are nearing completion. The company is engaged in the manufacturing of - KCP Grade 53 Portland,Cement

  • 2002  KCP Biotech Limited setup at Biotech Park, Shameerpet, Hyderabad to manufacture biotech related products.
  • 2001 KCP Heavy Engineering Plant II setup at Arakonam near Chennai, to execute medium to large sized fabrication projects.
  • 1999 KCP Hydel Power Division setup at Nekkarikallu, Andhra Pradesh on the Guntur Canal of Krishna river to generate 8 MW of power.
  • 1999 KCP Vietnam Industries Limited, a fully owned subsidiary of the KCP Limited setup to manufacture sugar at Thua Thien Hue Province at Central Vietnam. This 2500 TCD plant was shifted to Son Hoa District, Phuyen Province in 2001.
  • 1999 KCP Technologies Limited setup to provide high quality IT Solutions & Engineering Technical Services.
  • 1995 FCB-KCP Limited, (now Fives Cail-KCP) setup as a joint venture with Fives Cail Group of France for the design and manufacture of Sugar Plants.
  • 1995 KCP Sugar Manufacturing Division demerger into a separate company, KCP Sugar & Industries Limited.
  • 1984 Arakonam Castings & Forgings Limited, started as a joint venture between The KCP Limited and the Tamilnadu Industrial Development Corporation (TIDCO).
  • 1984 Fuller KCP Limited, a joint venture with Fuller International Inc, USA was launched, for the design and manufacture of large-sized cement plants and other mineral processing equipment. KCP divested its stake to FL Smidth, Denmark in 1996.
  • 1967 EIMCO-KCP Limited, started as a joint venture between The KCP Limited and EIMCO Corporatation, USA. Currently a 100% subsidiary of KCP Sugar & Industries Limited.
  • 1958 KCP Cement Division, setup at Macherla, Andhra Pradesh with a state-of-the-art cement manufacturing plant. India's first dry process kiln was installed at Macherla by HUMBOLDT AG, Germany in 1958 (while still a prototype in Europe).
  • 1955 KCP Heavy Engineering Division Plant I, setup at Tiruvottiyur, Chennai consisting of an integrated manufacturing facility, which caters to a wide range of heavy mechanical equipment and sub-systems for core sector industries.
  • 1941 An 800 TCD Sugar Plant was setup at Vuyyuru, Andhra Pradesh, India by Sri. V. Ramakrishna, Founder Chairman of KCP

Awards /Achievements

The KCP Cement Division received the National Award for the Second Best Improvement in Energy Performance during the year 1996-97.

KCP Limited won both the Excellence Award as well as the Udyog Rattan Award bestowed yearly by The Institute of Economic Studies (IES) , New Delhi to organizations and individuals for their significant contribution to the Indian economy.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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