🧠 At a Glance
KPT Industries is that rare microcap that makes electric power tools, industrial blowers, and Pushpak E-carts for garbage collection. Not exactly sexy… but the margins are. Small company, solid profits, and an ROE that would make HUL jealous.
1. 🔧 WTF Do They Even Do?
- Founded in 1976, this Nagpur-based company makes:
- Electric power tools (drilling, grinding, cutting, etc.)
- Industrial blowers used in power plants & effluent treatment
- Pushpak branded electric garbage E-carts (yes, really)
- Engineering spare parts like control motors and air blowers
- Has a network of 456 dealers spread across India
- ~66% raw material sourced domestically, rest imported
🛠️ Basically, it’s like Bosch and Ashok Leyland had a baby and left it in Vidarbha.
2. 📈 Financials Snapshot (FY25)
| Metric | Value |
|---|---|
| Revenue | ₹166 Cr |
| Net Profit | ₹14 Cr |
| OPM | 16% |
| ROE / ROCE | 22.5% / 25.5% |
| EPS | ₹40.97 |
| Market Cap | ₹296 Cr |
| P/E | 21.2x |
| Book Value | ₹201 |
| CMP/BV | 4.3x |
⚡Small base, high margins, solid returns. Classic microcap multibagger formula.
3. 📦 Growth – Slower Than Your Mixer Grinder
| Period | Sales CAGR | PAT CAGR |
|---|---|---|
| 10 Years | 7% | 47% |
| 5 Years | 10% | 23% |
| 3 Years | 13% | 34% |
| TTM | 10% | 16% |
💡Sales are crawling. But profits are growing faster thanks to OPM expansion and cost control.
4. 🔢 Quarterly Numbers – Stable AF
| Quarter | Sales (₹ Cr) | OPM % | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| Q4 FY25 | 39.69 | 14.2% | ₹3.01 | ₹8.85 |
| Q3 FY25 | 40.39 | 15.1% | ₹2.86 | ₹8.41 |
| Q2 FY25 | 40.17 | 17.5% | ₹3.96 | ₹11.65 |
| Q1 FY25 | 45.79 | 16.1% | ₹4.10 | ₹12.06 |
Margins range from 14–17%. Volumes are seasonal (Govt E-cart tenders maybe?), but profitability is sticky.
5. 💰 Valuation – Reasonable or Reason to Buy?
- P/E: 21.2x
- CMP: ₹870
- EPS (TTM): ₹40.97
- P/B: 4.3x
- EV/EBITDA: ~11x (estimated)
🔍 Compared to other small industrials trading at 40–100x, this looks reasonable. Also, the company is debt-light and margin-heavy.
6. 🧾 P&L Breakdown (FY25)
| Metric | FY25 |
|---|---|
| Revenue | ₹166 Cr |
| OPM | 16% |
| Operating Profit | ₹26 Cr |
| Net Profit | ₹14 Cr |
| EPS | ₹40.97 |
| Dividend | ₹2/share |
| Dividend Yield | 0.29% (meh) |
💡This is the highest-ever net profit in KPT’s history.
7. 🧮 Cash Flow – Not Bad, Not Great
| Year | CFO (₹ Cr) | FCF Est. | Capex |
|---|---|---|---|
| FY23 | ₹14 Cr | ~₹8 Cr | ~₹6 Cr |
| FY24 | ₹5 Cr | Lower | Capex ₹6 Cr |
| FY25 | ₹21 Cr | Higher | Capex ₹3 Cr |
💰 Generated good free cash in FY25. Likely used to reduce debt (now down to ₹23 Cr).
8. 💸 Balance Sheet – Chhota Packet, Clean Dhamaka
| Metric | FY25 |
|---|---|
| Equity Capital | ₹2 Cr |
| Reserves | ₹67 Cr |
| Borrowings | ₹23 Cr |
| Net Worth | ₹69 Cr |
| Total Assets | ₹114 Cr |
⚖️ D/E under control. No goodwill. No contingent nonsense. Simple and real.
9. 📦 Inventory & Working Capital Woes
| Metric | FY25 |
|---|---|
| Debtor Days | 75 |
| Inventory Days | 159 |
| Payables Days | 25 😖 |
| CCC | 208 Days |
🧯 Working capital is a big red flag. Too much inventory and poor payment terms.
10. 👯 Peer Comparison
| Company | P/E | ROE % | OPM % | Sales (Cr) | Market Cap (Cr) |
|---|---|---|---|---|---|
| KPT Industries | 21x | 22.5% | 16% | ₹166 | ₹296 |
| Kaynes Tech | 142x | 11% | 15% | ₹2,722 | ₹41,741 |
| Jyoti CNC Auto | 73x | 21% | 27% | ₹1,818 | ₹23,568 |
| Syrma SGS | 62x | 10% | 9% | ₹3,787 | ₹10,659 |
| Lloyds Engineering | 102x | — | 16% | ₹846 | ₹10,511 |
📌 KPT is a microcap outlier with industrial returns but a far lower valuation.
11. 🤹 Miscellaneous Masala
- Promoter Holding: 48.06% – no pledging
- DII/FII: Basically zero
- Retail Shareholders: Increased from 3,600 to 8,200 in 2 years
- No corporate drama, no dilution, and still relatively unknown
🧼 Boring is good in smallcaps.
12. ⚖️ EduInvesting Verdict™
“Power tool banaate-banaate profit machine ban gaya bhai.”
🟢 Ideal for:
- Microcap junkies
- Smallcap funds looking for high-ROE industrials
- Those who believe in “boring compounding”
🔴 Avoid if:
- You expect multibagger growth in 1 year
- You want high liquidity
- You like trending largecaps with big volumes
💸 Fair Value Range: ₹700 – ₹950
Why?
- EPS ~₹41
- Fair P/E: 17–23x for smallcap with good ROE
- High working capital is a risk – FV range reflects some margin of safety
Tags: KPT Industries, Microcap Stocks, Industrial Tools, Pushpak E-Cart, High ROE Smallcap, EduInvesting
✍️ Written by Prashant | 📅 July 3, 2025
