🛠️ “Kriti Industries: From Plumbing Dreams to PIPE-Nightmares?”

🛠️ “Kriti Industries: From Plumbing Dreams to PIPE-Nightmares?”

At a Glance

Kriti Industries manufactures PVC and HDPE pipes, fittings, and telecom ducts. It once had decent margins and growth, but FY24–25 was a total washout: flat sales, net losses, and negative ROE. Throw in a questionable auto division merger and warrants galore, and you’ve got a turnaround story… or a slow leak.


1. Introduction with Hook 🧯

The great Indian pipe dream isn’t just Bollywood. It’s irrigation, it’s smart cities, it’s Jal Jeevan. It’s plastic pipes with 20% margin.

Well… unless you’re Kriti Industries, where operating margin is 4% and net profit is -₹4 Cr.

Is this a smallcap value play post-pain? Or a classic case of “Dekho sir, price-to-book is misleading”?

Let’s dig into this pipe maker’s cracked financial plumbing.


2. WTF Do They Even Do? 🧩

Core Business:

  • Manufactures PVC & HDPE pipes, fittings, telecom ducts, casing pipes
  • Focused on irrigation, construction, gas utilities, and agri
  • 33 extrusion lines for PVC
  • 14 for HDPE and drip irrigation
  • 27 injection moulding machines

👀 In 2024, they announced a merger with Kriti Auto & Engineering Plastics — cross-selling or cross-burdening?


3. Financials Overview – Profit, Margins, ROE 💸

MetricFY21FY23FY25
Revenue (₹ Cr)589732722
Net Profit (₹ Cr)36-23-4
OPM (%)11%-1%4%
ROE (%)7.3%-4.6%-2.4%

📉 FY23 was a bloodbath with negative margins
📉 FY25 net loss = back in the red
📉 ROE and ROCE both below 7%

This pipe’s leaking — and not just water.


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

  • CMP: ₹171
  • EPS (TTM): -₹0.84
  • Book Value: ₹39.5
  • P/E: NA
  • P/BV: 4.33x 🤯

🎯 Fair Value Range: ₹80–₹100

Based on 20–25x normalized EPS of ₹3–₹4 (if and when recovery happens)

The market’s pricing in a turnaround story, but the results say “not yet, bro.”


5. What’s Cooking – News, Triggers, Drama 🍿

🧱 Merger with Kriti Auto approved (May 2024)
📦 Warrants issued — 94.6 lakh in July 2024
🤝 Allotment of 15 lakh shares to Kriti Nutrients
📉 3 of last 5 quarters had negative EPS
🧃 Telecom duct and infra demand stagnant

Pipe growth is not flowing smoothly.


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

MetricFY21FY23FY25
Net Worth₹134 Cr₹130 Cr₹202 Cr
Borrowings₹81 Cr₹120 Cr₹100 Cr
Total Assets₹365 Cr₹411 Cr₹472 Cr
  • Debt reduced in FY25, but equity diluted
  • Net worth growth mostly from warrants, not profits
  • Fixed assets rising, but no RoCE payoff yet

7. Cash Flow – Sab Number Game Hai 💵

FYCFO (₹ Cr)Capex (₹ Cr)Net Cash
FY23₹27 Cr₹31 Cr~0
FY24₹58 Cr₹46 Cr~0
FY25₹34 Cr₹37 Cr~0

Stable operational cash flow. But zero free cash flow.

Basically, every rupee earned is drilled into a new pipe machine.


8. Ratios – Sexy or Stressy? 📉

RatioFY23FY24FY25
ROCE-6%19%6%
ROE-4.6%4.4%-2.4%
OPM-1%7%4%
CCC (Days)444044

⚠️ ROE and OPM trending wrong direction
✅ Working capital cycle under control
❌ ROCE dip post-merger incoming?


9. P&L Breakdown – Show Me the Money 💰

FYRevenue (₹ Cr)EBITDA (₹ Cr)PAT (₹ Cr)
FY22545₹39 Cr₹20 Cr
FY23732₹-8 Cr₹-23 Cr
FY25722₹28 Cr₹-4 Cr

Peak profit was in FY21–22, then a brutal FY23 wiped it out.

FY25 was an improvement — but not convincing.


10. Peer Comparison – Who Else in the Game? 🚿

CompanyP/EROE (%)OPM (%)M.Cap (₹ Cr)
Astral77x15.3%16.2%₹40,000+
Finolex Inds28x7.9%11.5%₹12,600
Time Techno26x14.2%14.4%₹10,100
Kriti IndsNA-2.4%4.0%₹883

📉 Kriti is a microcap among giants
📉 Trading at 4.3x book with negative ROE is absurd


11. Miscellaneous – Shareholding, Warrants, Corporate Drama 🚩

HolderMar ’24Jun ’25
Promoters66.35%68.72%
FIIs0.08%0.11%
Public32.18%31.17%
  • ✅ Promoter stake inching up
  • ⚠️ Massive warrant issuance dilutes future EPS
  • 📍 Shareholders: ~12,000 = not operator-driven, but not very institutional either

12. EduInvesting Verdict™ ⚖️

✅ Decent brand in pipes, strong legacy
✅ Merger may add synergy, if managed well
✅ Promoters increasing stake = confidence?

❌ Multiple loss-making quarters
❌ High P/BV for a business in decline
❌ ROE/ROCE = unimpressive, warrant dilution risk high

📉 Fair Value Range: ₹80–₹100
📍 CMP: ₹171 = double the story, half the performance

Verdict: Kriti is like a leaky tap — there’s potential, but right now it’s wasting value, not creating it.


✍️ Written by Prashant | 📅 July 9, 2025
Tags: Kriti Industries, PVC Pipes, Smallcap Pipes, Merger Watch, Preferential Warrants, Irrigation Stocks, EduInvesting Plastics Series

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