1. At a Glance – Cement Pipes, Tiny Profits, Big Plans
Kanoria Energy & Infrastructure Ltd is currently sitting at a ₹135 Cr market cap, with the stock price around ₹15.8, down 17.9% in the last 3 months and a brutal -44.8% over one year. That’s not a correction. That’s a reality check.
Latest quarterly sales stand at ₹55.67 Cr, with a microscopic ₹0.07 Cr PAT. Yes, ₹7 lakh profit. ROE? A gentle 3.96%. ROCE? 8.15%. Debt? A spicy ₹105 Cr. Interest coverage? 1.03 — which basically means interest is being paid with nervous sweating.
Price to Book is 1.44, EV/EBITDA is 14, and Price to Sales is just 0.52. Looks cheap? Or value trap wearing a discount sticker?
And just when you think this is a boring asbestos pipe company… boom — they announce a ₹300 Cr ethanol plant.
From pipes to petrol. From asbestos to alcohol.
Curious yet? Good. Let’s dig.
2. Introduction – From A Infrastructure to Energy Dreams
Incorporated in 1980, this company has lived through more economic cycles than some mutual fund managers. It recently changed its name from A Infrastructure Limited to Kanoria Energy & Infrastructure Ltd in April 2023.
Rebranding usually means one of three things:
- New growth phase.
- New strategy.
- Old business with a new Instagram filter.
The core business? Manufacturing Asbestos Cement (A.C.) Pressure Pipes and Roofing Sheets under the brand name JAI KIRTI. They supply to water schemes, including World Bank-assisted projects. Sounds stable, right?
But here’s the twist.
In November 2023, the board approved a ₹300 Cr investment into a 250 KLPD grain-based ethanol plant in Jabalpur. For a company with ₹135 Cr market cap, that’s like someone earning ₹10 lakh deciding to build a ₹25 lakh farmhouse.
Ambition level: 100.
Balance sheet strength: We’ll discuss that.
Before we judge, let’s understand what they actually do.
3. Business Model – WTF Do They Even Do?
Kanoria manufactures:
- Asbestos Cement Pressure Pipes
- A.C. Corrugated Roofing Sheets
- Couplings and moulded
