1. At a Glance
India’s least-known explosive manufacturer is also quietly compounding at 33% profit CAGR over 5 years. Keltech Energies mixes mining boom, insulation tech, and Chowgule family calm—all under one seriously undervalued ₹400 Cr package.
2. Introduction with Hook
Imagine a stock that sells explosives and makes perlite filter aids, yet trades like a sleepy FMCG. That’s Keltech. The company literally blows things up for a living—but on Dalal Street, it tiptoes like a monk.
- ROCE: 26%
- Stock CAGR (3Y): 89%
- Promoter Holding: 54.33% (rock solid)
With FY25 EPS of ₹249.40, and CMP ₹4,168, this looks more like a disguised Chowgule family office than a listed entity.
3. Business Model (WTF Do They Even Do?)
Keltech is in:
- Explosives: Cartridge, bulk emulsion, MMAN solutions
- Perlite & Cryogenic Insulation: Supplies for LNG, LOX, Ethylene, etc.
- Accessories: For mining, thermal insulation, filtration
The real kicker? They provide tech for cryogenic equipment insulation—stuff that keeps LNG and Liquid Oxygen ice-cold at -160°C.
Zero debt, niche market. High barrier. Minimal competition.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Sales | ₹488 Cr |
| EBITDA | ₹36 Cr |
| OPM | 7.15% |
| PAT | ₹25 Cr |
| EPS | ₹249.40 |
| Book Value | ₹1,246 |
| ROCE | 26% |
| ROE | 22.2% |
| Dividend | ₹1/share (LOL) |
The profit more than doubled in 2 years, and yet dividend payout is stingier than a Gujarati bachelor on a date.
5. Valuation
- CMP: ₹4,168
- P/E: 16.7x
- P/BV: 3.34x
Peers like Solar Industries trade at 100+ P/E. Premium Explosives trades at 101x.
Fair value using conservative multiples:
- Base Case (P/E 20): ₹4,988
- Bull Case (P/E 30): ₹7,482
- Bear Case (P/E 12): ₹2,993
Fair Value Range: ₹3,000 – ₹7,500
6. What’s Cooking – News, Triggers, Drama
- Q4 & Q1: PAT surging quarter after quarter. EPS for Q1 FY26 = ₹68.80
- Board Reshuffle: Two independent directors added in July 2025
- Cryogenic demand rising with LNG infra, India’s green hydrogen dreams
- Perlite exports seeing quiet traction in chemicals & pharma
Zero drama. Only dynamite.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity | ₹1 Cr |
| Reserves | ₹124 Cr |
| Borrowings | ₹38 Cr |
| Total Liabilities | ₹287 Cr |
| Fixed Assets + CWIP | ₹77 Cr |
| Investments | ₹22 Cr |
| Other Assets | ₹188 Cr |
Key Takeaways:
- Company operates with precision – reserves up 25% YoY
- Investments and working capital healthy
- Borrowings are manageable and growth-supportive
8. Cash Flow – Sab Number Game Hai
| Item | FY25 |
|---|---|
| CFO | ₹-18 Cr |
| CFI | ₹-10 Cr |
| CFF | ₹10 Cr |
| Net Cash Flow | ₹-18 Cr |
Caution: Negative cash flow in FY25 due to working capital cycle, capex. But historically stable.
Company prefers organic growth over debt-funded stunts.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 26% |
| ROE | 22.2% |
| Inventory Days | 45 |
| Debtor Days | 42 |
| CCC | -10 (chef’s kiss) |
| Debt/Equity | 0.3 |
Efficient operations. Excellent cash cycle. ROCE is better than most IT stocks. No stress, just slow explosions.
10. P&L Breakdown – Show Me the Money
| Year | Sales | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹563 Cr | ₹26 Cr | ₹12 Cr | ₹119.20 |
| FY24 | ₹449 Cr | ₹32 Cr | ₹19 Cr | ₹194.10 |
| FY25 | ₹488 Cr | ₹36 Cr | ₹25 Cr | ₹249.40 |
Revenue dipped in FY24 but recovered. PAT is on a compounding spree.
11. Peer Comparison
| Company | P/E | ROCE | PAT Margin | EPS | CMP |
|---|---|---|---|---|---|
| Solar Industries | 109.5x | 38.1% | 16.6% | ₹1,200 | ₹15,190 |
| Premier Explosives | 101.8x | 16.8% | 4.8% | ₹28 | ₹541 |
| Keltech Energies | 16.7x | 25.9% | 5.1% | ₹249.4 | ₹4,168 |
| GOCL Corp | 17.6x | 7.0% | 5.1% | ₹56 | ₹396 |
Verdict? Keltech has way better operating metrics than its peers at a discount valuation.
12. Miscellaneous – Shareholding, Promoters
| Category | % |
|---|---|
| Promoters | 54.33% |
| Public | 45.54% |
| DIIs | 0.14% |
| Pledge | 0% |
Shareholding hasn’t budged for 2 years. Silent conviction from Chowgule group.
No FIIs. No operators. No circus. Just value.
13. EduInvesting Verdict™
Keltech Energies is like that serious topper in class—quiet, consistent, and no-nonsense. It supplies materials for blowing up mines and freezing hydrogen—but trades like it’s making candles in Goa.
This one’s not going to TikTok. It’s going to quietly compound.
If India goes big on LNG, mining infra, or cryogenic insulation? This sleeper may finally explode—in a good way.
Metadata
– Written by EduGPT | 16 July 2025
– Tags: Keltech, Explosives, Cryogenic Insulation, Chowgule Group, Perlite, Specialty Chemicals, Multicap Sleeper, ROCE Kings
