🟨 At a Glance

KSE Ltd is that boring rural cousin of FMCG stocks — quiet, unsexy, but secretly making 43% ROCE while your favorite D2C brand loses money selling vegan ghee. With ₹1,650 Cr in revenue, zero debt, 34% ROE, and trading at just 7.7x earnings, this Kerala-based cattle feed and dairy veteran is more multibagger than most unicorns. So why is nobody interested?

1. 🐄 Introduction: Moo-nlight Multibagger?

KSE has:

• 60+ years of history
• ₹694 Cr market cap
• ₹91 Cr FY25 PAT
• And a P/E of 7.7x

That’s illegal in some valuation circles. In an age of 80x PE kitchen appliance startups, KSE looks criminally overlooked.

But maybe that’s because it sells cattle feed, not clickbait.

2. 🧃 WTF Do They Even Do?

🛒 KSE operates in 3 segments:

1. Cattle Feed (Core Revenue Generator)
   • Compound cattle feed for dairy farmers
   • National Productivity Council certified
   • Distributed via 700+ dealer network
2. Solvent Extraction
   • Extracts oil from oil cakes (input for feed or edible oil)
   • Low-margin, input cost-sensitive
3. Milk & Milk Products
   • Regional milk procurement & processing in Kerala
   • Sells pasteurized milk, curd, ghee, etc.

So yes, it’s Godrej Agrovet meets Amul — except no one’s hyping it on CNBC.

3. 📊 Financials – Show Me the Moo-lah

✅ FY25 Margin Comeback: OPM jumped from 2% → 7%
✅ EPS FY25: ₹285.34
✅ Stock P/E: 7.76x
📉 Sales CAGR (5Y): ~3% 💤

4. 💸 Valuation – Is It Cheap, Meh, or Crack?

Let’s compare:

KSE is trading at:

• Half the P/E of Avanti
• 1/5th the P/E of Godrej Agrovet
• Yet beating them both in ROCE & ROE

🧠 EduFair™ Value Range:

• EPS FY25 = ₹285
• Base Case (12x) = ₹3,420
• Aggressive (15x) = ₹4,275
• Ultra Rural Rerating (18x) = ₹5,130

🎯 EduFair™ Range: ₹3,420 – ₹5,130

CMP ₹2,169 is ridiculously low. The only thing cheaper is loose fodder.

5. 🔍 What’s Cooking – Triggers & Tension

🔥 FY25 Q4 Net Profit = ₹35 Cr (₹108 EPS in 1 Qtr)
📦 Inventory Days = 30 (well managed ops)
🥛 ₹50 Final Dividend Announced + 1:10 Stock Split
🚨 Promoter Holding = 23.2% (super low, public owns 77%)

🎯 Stock Split + strong FY25 = potential rerating moment
📉 But if margins fall again… we’re back in value trap zone

6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?

• 💸 Debt: Barely ₹24 Cr (vs ₹294 Cr reserves)
• 🧱 Fixed Assets: ₹58 Cr
• 💼 Investments: ₹113 Cr (not fake ones)
• 🏗️ Working Capital Days: 45 (reasonable)
• 🧃 FY25 CFO = ₹143 Cr 💥

This is a rare SME where the cash flow statement looks better than the P&L.

7. 💵 Cash Flow – The Silent Alpha

Despite volatile sales, KSE generates healthy operating cash when margins rise.

FY25 is the perfect example — ₹91 Cr PAT, ₹143 Cr cash flow.

8. 📐 Ratios – Sexy or Stressy?

📌 Super efficient. No red flags. Just… ignored.

9. 📈 P&L Snapshot – Moo to Millions

The company swung from loss to 7% OPM in just 24 months. Not bad for a cattle feed firm.

10. 🧍 Shareholding – Who Owns the Moo?

🔎 This is not promoter-controlled — but it is public-trust controlled. Which is rare. Risk of hostile buyout? Low. But rerating needs an anchor investor.

🧠 EduInvesting Verdict™

KSE Ltd is your granddad’s multibagger — old school, rural, grounded. No SaaS, no D2C, no fantasy valuations.

And yet:

• ROE = 34%
• Debt = negligible
• P/E = 7.7x
• FY25 profits = all-time high
• Dividend + stock split = incoming triggers

The only reason it’s not ₹3,000+ already? Zero narrative. No influencer. No investor deck with yoga slides.

But if you’re okay buying an actual business instead of a dream — this one delivers compound returns like a pro.

✍️ Written by Prashant | 📅 27 June 2025
Tags: KSE Ltd, Cattle Feed Stocks, Low PE, Dividend Stocks, Dairy Business, Kerala Companies, EduInvesting