1. At a Glance
Kabra Extrusion is India’s OG in plastic extrusion machinery—think industrial-sized toothpaste tubes making pipes and films. Now also chasing EV battery dreams via its Battrixx brand. But FY25 results? Let’s just say they were more “meh” than “yeah.”
2. Introduction with Hook
Imagine a 1980s uncle who spent four decades perfecting plastic pipe-making machines. Now imagine him having a midlife crisis and deciding to build EV battery packs. That’s Kabra Extrusion Technik.
- 15,000+ machines installed in 100+ countries
- 40% market share in extrusion segment
- FY25 Net Profit YoY drop: ~10%
Battrixx is supposed to be the knight in lithium-ion armor. But right now, it’s still warming up.
3. Business Model (WTF Do They Even Do?)
Core Biz: Plastic Extrusion Machinery (74% of FY25 revenue)
- Pipe & film extrusion lines
- Blown film lines
- Sheet extrusion
- Market leader with ~40% share in India
New Biz: Lithium-Ion Battery Packs (via Battrixx)
- Active since FY21
- Supplies to OEMs like Hero Electric
- Received AIS 156 certification
- Collaborating with EVE Power for Battery Energy Storage Systems (BESS)
Two engines, one old-school and proven, the other shiny and “in-development”.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (Cr) | 670 | 608 | 477 |
| EBITDA (Cr) | 74 | 61 | 52 |
| EBITDA Margin | 11% | 10% | 11% |
| Net Profit (Cr) | 38 | 32 | 34 |
| EPS (Rs) | 11.34 | 9.06 | 9.68 |
| Dividend Payout | 31% | 39% | 26% |
Flat-ish revenue, falling volumes, and other income (Rs. 21 Cr) padding up the profit line. Time to check batteries?
5. Valuation
| Valuation Metric | Value |
|---|---|
| CMP | ₹310 |
| P/E | 39.3x |
| Book Value | ₹133 |
| P/B Ratio | 2.33x |
| Market Cap | ₹1,083 Cr |
Using various methods:
- PE-based Fair Value (20–25x on FY25 EPS of 9.68) = ₹193–242
- EV/EBITDA at 15x on FY25 EBITDA of ₹52 Cr = ₹200–230
- SOTP (Adding battery optionality) = ₹240–280
Fair Value Range: ₹200–280
Current price = Slightly inflated expectations on battery dreams.
6. What’s Cooking – News, Triggers, Drama
- CEO change in Extrusion Division (May 2025)
- Sold 49.94% stake in Penta Auto Feeding (Jan 2025)
- Claim of ₹30.4 Cr under IBC for unpaid dues
- Battrixx unveiled high-voltage battery at Bharat Mobility Expo
- CRISIL credit rating: A+/Negative
Trigger Watch:
- Battery biz scale-up (FY26 target)
- Recovery in extrusion order book
- Profit quality (less “other income” padding)
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | 17 | 17 | 17 |
| Reserves | 367 | 433 | 448 |
| Borrowings | 74 | 86 | 128 |
| Total Assets | 635 | 714 | 790 |
Key Points:
- Debt creeping up: ₹128 Cr (from ₹74 Cr)
- Equity base constant
- Capex visible in CWIP rise (₹50 Cr in FY25)
- Reserves healthy at ₹448 Cr
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | -₹4 Cr | -₹29 Cr | ₹34 Cr | ₹2 Cr |
| FY24 | ₹33 Cr | -₹52 Cr | ₹23 Cr | ₹5 Cr |
| FY25 | ₹45 Cr | -₹66 Cr | ₹16 Cr | -₹4 Cr |
Observations:
- Positive operating cash flows—good sign
- Heavy investing cash outflows = battery biz ramp-up
- Financing activity slowing
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 15% | 10% | 8% |
| ROE (%) | 11% | 9% | 6% |
| OPM (%) | 11% | 10% | 11% |
| Inventory Days | 157 | 205 | 364 (!) |
| Cash Conversion Cycle | 156 | 195 | 341 (!) |
Key Flags:
- Inventory pile-up = weak extrusion demand?
- ROCE + ROE both deteriorating
- Margins stable-ish, but operating leverage is missing
10. P&L Breakdown – Show Me the Money
| Year | Sales (Cr) | EBITDA (Cr) | Net Profit (Cr) | EPS (Rs) |
|---|---|---|---|---|
| FY23 | 670 | 74 | 38 | 11.34 |
| FY24 | 608 | 61 | 32 | 9.06 |
| FY25 | 477 | 52 | 34 | 9.68 |
Notes:
- FY25 profit up despite lower sales—thanks to other income
- EPS flat for 3 years
- EBITDA contraction evident
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE (%) | Market Cap (Cr) |
|---|---|---|---|---|
| Kaynes Tech | 5,853 | 133x | 14.4% | 39,189 |
| Jyoti CNC | 1,021 | 72x | 24.3% | 23,213 |
| Syrma SGS | 705 | 73x | 12.4% | 12,522 |
| LMW | 16,175 | 166x | 4.5% | 17,279 |
| Kabra Extrusion | 310 | 39x | 7.9% | 1,083 |
Insight:
Market is giving Kabra a growth valuation. But growth is crawling. Either Battrixx fires, or rerating awaits.
12. Miscellaneous – Shareholding, Promoters
| Holder | Sep 22 | Mar 24 | Jun 25 |
|---|---|---|---|
| Promoters | 60.44% | 60.24% | 60.21% |
| FIIs | 0.39% | 3.67% | 0.81% |
| DIIs | 0.10% | 0.01% | 0.70% |
| Public | 39.06% | 36.08% | 38.28% |
Key Trend:
FII interest peaked in FY24, declined sharply in FY25. Probably spooked by flat growth and falling ROCE.
13. EduInvesting Verdict™
Kabra Extrusion is a 40-year-old plastics prince, trying to morph into an EV battery warrior. The core business is solid but cyclical. The new battery biz has potential but also execution risks. FY25 earnings relied heavily on “other income” (Rs. 21 Cr)—always a red flag.
Big Questions:
- Can Battrixx become the next Amara Raja?
- Or will it become the next Videocon battery plant?
For Now:
This midcap story is plastic at its core—and potential at its periphery. Watch the battery biz trajectory closely.
Metadata
– Written by EduInvesting Team | 19 July 2025
– Tags: Kabra Extrusion Technik, EV Batteries, Extrusion Machinery, Smallcap, Kolsite Group, Battrixx, Engineering, India Manufacturing
