Kross Ltd: 86% Profit CAGR in 5 Years – But Still No Dividend, Sir!

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1. At a Glance

Kross Ltd, fresh off its IPO glory days, is already acting like a seasoned auto components veteran — good profits, growing revenue, and a P/E low enough to not cause heart attacks (20.3). Market cap? ₹1,035 Cr. ROCE? A juicy 21.7%. ROE? A healthy 16.5%. But if you’re expecting a dividend, sorry — they treat profits like vintage car parts: store carefully, never share.

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2. Introduction

Founded in 1991, Kross has spent three decades becoming that behind-the-scenes hero of the transport world — the maker of high-performance trailer axles, suspension assemblies, and safety-critical parts for commercial vehicles and tractors.

Think of them as the spinal cord of the trucking industry — you never see it, but if it breaks, nothing moves. Yet despite an 86% CAGR in profits over 5 years, the share price recently hit a pothole, down 5.6% in a day, sliding from its high of ₹271 to ₹160.

Maybe the market suddenly realised: “Wait, this stock doesn’t pay dividends and debtor days jumped from 70 to 107?” Or maybe investors just wanted to try Lemon Tree Hotels instead.

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3. Business Model (WTF Do They Even Do?)

Kross manufactures:

• Trailer axles & suspension assemblies (for M&HCVs and trailers).
• Safety-critical components for the farm equipment segment (tractors).
• Serves commercial vehicle OEMs and farm equipment manufacturers.

Revenue is cyclical — tied to capex cycles