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KSE Ltd Stock Analysis

Small Cap
Evaluated by 625 users | BSE: 519421 | NSE: KSE |
Consumer Food
Kerala Solvent Extractions Ltd. now known as KSE Ltd.  entered the solvent extraction industry in 1963 by setting up the very first solvent extraction plant in Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant was set up to manufacture ready mixed cattle...

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 11.16%20.15%10.36%25.87%49.23%9.29%16.74%44.14%4.92%11.87%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4545426978069009251,0471,3041,2091,429
Y-o-Y Gr. Rt.-19.5%28.6%15.7%11.6%2.8%13.2%24.5%-7.3%18.1%
Adjusted EPS (Rs.) 13.9231.7414.0548.37113.8720.6649.72213.3224.7157.38
Y-o-Y Gr. Rt.-128%-55.7%244.3%135.4%-81.9%140.7%329%-88.4%132.2%
Book Value per Share (Rs.) 104.23124.1127.17151.82224.41224.03270.63449.35405.54443.86
Adjusted Net Profit 4.510.24.515.536.46.615.968.37.918.4
Net Op. Cash Flow (Rs. Cr.) 4.510919.436-5.323.864.5-12.634.7
Debt to Cash Flow from Ops 5.652.633.320.860.48-2.171.660.68-3.40.43
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.
KSE Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.6%9.7%10.9%18.1%
Adjusted EPS 17%-12.8%4.9%132.2%
Book Value per Share 17.514.617.99.5
Share Price 29.2% 30.9% -8.2% 83.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.5127.811.1834.6860.539.2120.159.265.7813.51
Operating Profit Margin (%) 3.044.191.933.666.741.762.818.321.111.85
Net Profit Margin (%) 0.981.870.641.924.050.711.525.230.651.29
Debt to Equity 0.760.660.740.340.240.160.450.310.330.1
Working Capital Days 24272524263028253025
Cash Conversion Cycle 18232018182323202320
Entity Percentage Holding
Promoters 25.70%
Institutions 0.11%
Non-Institutions 74.20%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

KSE Ltd earnings have declined by -12.8%, whereas share price has appreciated 30.9% 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 KSE Ltd share prices over the last 10 years. Here is what we found out:

KSE Ltd share price has appreciated 29.1% annually over the past ten years.

Kerala Solvent Extractions Ltd. now known as KSE Ltd.  entered the solvent extraction industry in 1963 by setting up the very first solvent extraction plant in Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant was set up to manufacture ready mixed cattle feed.

The last three decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattlefeed in the country. Today KSE commands the resources, expertise and infrastructure to

Kerala Solvent Extractions Ltd. now known as KSE Ltd.  entered the solvent extraction industry in 1963 by setting up the very first solvent extraction plant in Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant was set up to manufacture ready mixed cattle feed.

The last three decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattlefeed in the country. Today KSE commands the resources, expertise and infrastructure to manufacture a range of livestock feed in high volumes, coconut oil from coconut oil cake and refined edible oil.

Driven by a commitment to high standards of quality, KSE has not only won customer confidence but also national recognition through several awards and accolades. With modern manufacturing facilities spread over three states, KSE caters to the vast belt stretching across southern India and enjoys a significant presence in exports too.

KSE, a company having an annual turnover of Rs 187 crore, is the largest manufacturer of cattle feed. It provides employment to around 1500 numbers directly and another 5000 indirectly. Its shares are being listed in three stock exchanges in Cochin, Chennai and Mumbai. The Company commenced its production in the year 1972.

It is marketing annually about 1.80 lakh tones of superior quality cattle feed. KSE had successfully launched its Vesta Brand ice cream which has been well accepted in the market for its matching international quality standards. KSE plans to add more ice cream production units across Kerala in the coming years to serve all pockets.

KSE is in the oil extraction Industry for the past 31 years. It is having two solvent plants with processing capacity of 100 tonnes per day. The Company has also a chemical oil refining plant of 20 tonnes per day.

The company has secured the National Productivity Award for the year 2001-2002 for being first in terms of production efficiency in the animal feed sector. This is the sixth time in a row that the company is being selected for this most coveted award.The Company is having six Units at different locations. The relation with the labour Unions of all these Units is very warm and cordial.

KSE, with a capital base of Rs 36 crore embarks on an expansion to double its solvent extraction capacity and add a most modern ecofriendly vegetable refining plant. The company has already identified 6 acres of land in the KINFRA Small Industries Park, Koratty for this expansion.

In the first phase, the company plans to install one 200 MT per day solvent plant for processing oil cakes and also a 100 MT per day physical refining plant. Both these plants will be of international standard using most modern technologies, where the process loss is kept to the minimum. The project will generate direct employment to 125 and indirect employment to another 500 numbers. In the second phase, a 100 MT per day oil fractionation unit will also be added.

Product range of the company includes:

  • KS Vesta ice cream
  • KS milk
  • KS cattle feed

Milestones :

  • 1972 Solvent plant commences operation.
  • 1976 Mixed cattle feed production begins.
  • 1987Cattle feed production reaches 180 tonnes. Introduction of computers in the factory and office.
  • 1988 A new mixed cattle feed plant starts operation at Swaminathapuram, in Tamil Nadu with a daily production capacity of 180 tonnes.
  • 1989 A solvent unit with a capacity of 120 tonnes per day commences operation at the Tamil Nadu plant.
  • 1990 Introduction of KS Supreme Pellets , a bypass protein cattle feed in the market.
  • 1991Opens its Palghat branch.
  • 1992 Cattle feed manufacturing begins in third party units.
  • 1993- Enters export market.
  • 1994 - Introduction of feed supplement KS Forte. Public issue and listing of  shares.
  • 1995- Vegetable oil refining plant commissioned . KS Supreme - Sunflower Refined Oil launched .Calicut branch opens.
  • 1996- 240 TPD cattle feed commences at Vedagiri, Kottayam Dist., Kerala.
  • 1997 - Company renamed as KSE Ltd.
  • 1998- Fourth feed production unit at Palghat. Launches dairy project .
  • 1999- A modern childrens' park and information centre has been completeed at Irinjalakuda for the benefit of the public. Comapny introduces KS Delux Plus the new pelleted feed in HDPE bags for Kerala market.
  • 2000- Company starts production and distribution of milk and milk products from Konikkara and Thalaysthu Dairy Units.

Achievements/ recognition:

  • Kerala's first solvent extraction plant
  • No:1 in processing coconut oil cake through solvent extraction in India
  • Winner of S.E.A. National Awards and State Productivity and Safety Awards for many years
  • Front-ranker in mixed cattle feed production in India
  • Recognition from Animal Nutrition Society for contributions in cattle feed manufacturing
  • Kerala's first export mixed cattle feed
  • First in South India to manufacture and distribute bypass protein cattle feed
  • The name trusted by millions of people
  • SEA AWARD -2005-06 - received for 16 years consecutively.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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