1. At a Glance – Smallcap, Old-School, Confused Identity
Khaitan (India) Ltd is that 1936-born uncle who has seen British India, License Raj, LPG reforms, and still hasn’t decided what business he really wants to run. Market cap sits at roughly ₹44 Cr, stock price around ₹91, and the valuation screams “cheap” with a P/E of ~5.9×, but cheap things are often cheap for emotional reasons. Latest quarter (Q3 FY26) delivered sales of ₹26.8 Cr and PAT of ₹1.22 Cr, clocking ~58% YoY profit growth. Sounds spicy? Wait till you realise 80%+ of revenue is basically trading electrical goods and collecting royalty, while the sugar mill has been shut for over three years but still shows up in the accounts like a ghost who refuses to leave the haveli. Promoter holding is healthy at ~60%, but 32.8% of that is pledged – so yes, the promoter believes in the business, but the banker believes in the promoter more.
2. Introduction – A Company with Multiple Personalities
Khaitan (India) Ltd is not a pure-play anything. It’s part sugar, part agriculture, part electrical trading, and part brand-licensing machine. The company cultivates sugarcane, owns a sugar mill that is “temporarily suspended” (for years), and markets electrical goods under the Khaitan brand through a pan-India distribution network. This is the same Khaitan name that most Indian households associate with fans and appliances, except here the company largely earns royalty rather than manufacturing most products itself. Over time, the business has quietly morphed from manufacturing-heavy to asset-light trading and brand monetisation. The question investors keep asking: is this evolution or slow surrender?
3. Business Model – WTF Do They Even Do?
Think of Khaitan (India) as three roommates sharing one balance sheet:
- Electrical Goods Division: The real breadwinner. Trading fans, pumps, coolers, lights, motors, geysers, and more. Products are
- sold via a distributor-dealer network across India, with exports to Bangladesh, Sri Lanka, Nepal, UAE, Bahrain, Ghana, Nigeria, etc. This division contributes almost the entire revenue.
- Agriculture Division: Small, volatile, seasonal. Crop sales pop up occasionally and vanish just as fast.
- Sugar Division: Emotionally important, financially painful. The sugar mill has been non-operational for over three years due to lack of working capital, labour issues, and accumulated losses. Management insists it’s not discontinued. Auditors politely disagree.
If you explain this to a lazy investor: Khaitan today is basically a trading-and-royalty company pretending to still be an integrated agri-sugar play.
4. Financials Overview – Q3 FY26 Scorecard
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 26.83 | 17.89 | 19.58 | ~50% | ~37% |
| EBITDA | 1.70 | 1.54 | 0.77 | ~10% | ~121% |
| PAT | 1.22 | 0.77 | 0.34 | ~58% | ~259% |
| EPS (₹) | 2.57 | 1.62 | 0.72 | ~59% | ~257% |
Annualised EPS (Q1–Q3 Avg × 4): ~₹6.6
At ₹91 CMP, implied forward P/E is still in single digits.
Witty takeaway: Profits are growing faster than confidence, and margins behave better when sugar stays asleep.
5. Valuation Discussion – Fair Value Range (Educational Only)
Method 1: P/E Multiple
- Annualised EPS: ~₹6.6
- Conservative multiple: 7×–10× (discount for governance + sugar drama)
- Fair value range: ₹46 – ₹66
Method 2: EV/EBITDA
- EV: ~₹58.7 Cr
- Annualised
