1. At a Glance
Kaycee Industries Ltd is what happens when a 1942-born switch maker suddenly discovers that the market has expectations in 2026. With a market cap of ₹231 Cr, a current price of ₹729, and a stock that has fallen ~34% in the last three months, Kaycee looks like that overachieving student who topped exams for years and then shocked everyone with a “thoda off ho gaya” semester.
The latest Q3 FY26 numbers show revenue of ₹14.45 Cr and PAT of ₹1.23 Cr, up 21.7% YoY in sales and 26.8% YoY in profits. Operationally, this is a solid industrial story: ROCE at 30.6%, ROE at 22.2%, debt-to-equity just 0.11, and improving margins over the years.
But valuation? 38.6× P/E for a ₹58–60 Cr revenue company. That’s where the market scratches its head, sips chai slowly, and says, “Results toh ache hain, par bhaav thoda zyada hai.”
So the question is simple: is Kaycee a high-quality compounder temporarily punished by sentiment, or a good business priced like a tech unicorn during bull market hangover?
2. Introduction – The 80-Year-Old Switch That Refuses to Retire
Kaycee Industries was incorporated in 1942, when India didn’t even have independence, let alone EV chargers and rooftop solar disclosures. It is famously known as India’s first manufacturer of rotary switches, which in Indian industrial circles is like saying, “Humne pehle switch on kiya tha.”
Fast forward to today, Kaycee is a subsidiary of Salzer Electronics, quietly manufacturing electrical switches, counters, and components while the market chases solar stocks and EV buzzwords. Over the last decade, the company has gone from sub-₹25 Cr annual revenues to ~₹59 Cr TTM, while steadily improving margins and return ratios.
Yet, despite solid execution, Kaycee’s stock has been volatile. After touching highs near ₹1,700, the stock corrected sharply to the ₹700 zone. That’s not because the business collapsed—it’s because expectations were partying harder than fundamentals could keep up.
So what exactly does Kaycee do, and why does this small-cap industrial keep ending up
on investor watchlists?
3. Business Model – WTF Do They Even Do?
Let’s simplify this without making it boring.
Kaycee does two things:
1) Manufacturing Segment – The Real Business (72% of Q2 FY25 revenue)
This is where the real engineering happens. Kaycee manufactures industrial electrical products such as:
- Rotary switches
- Cam switches
- Toggle & limit switches
- Mechanical & universal counters
- Monitoring devices and timers
- Auxiliary and control switches
These are not fancy Instagrammable products. These are the things that sit inside panels, machines, railways, factories, and power installations—quietly doing their job without asking for attention.
This segment grew 56% between FY22 and FY24, driven by:
- Industrial capex recovery
- Renewables and power infra demand
- Strong parent linkage with Salzer Electronics
Margins here are healthy because this is not commodity junk—it’s application-specific, engineered stuff.
2) Trading Segment – The “Parent Company Kirana” (28% of revenue)
Kaycee also trades electrical installation products like switches, wires, and cables, sourced largely from Salzer Electronics.
This segment grew faster—94% growth between FY22 and FY24—but it’s lower margin. Think of it as volume-driven, relationship-based revenue. It helps scale topline, but no one should confuse it with high-moat manufacturing.
So overall, Kaycee is a manufacturing-led industrial company with a trading tail, not the other way around.
4. Financials Overview – The Numbers That Matter
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 14.45 | 11.87 | 14.91 | 21.7% | -3.1% |
| EBITDA | 2.07 | 1.65 | 2.22 | 25.5% | -6.8% |
| PAT | 1.23 | 0.97 | 1.50 | 26.8% | -18.0% |
| EPS (₹) | 3.88 | 3.06 | 4.73 | 26.8% | -18.0% |
