Kapston Services (KAPSTON)

FairStock Score: 38/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is asking ₹588.40 for Kapston, valuing the firm at ₹1,791 Cr. On the surface, the growth record is attractive: 31.26% five-year revenue CAGR, 16.20% recent sales growth, 38.60% profit growth, and a PEG of 0.79. Yet I must ask what I am paying for. A P/E of 63.68 and P/B of 15.39 against a book value of ₹38.23 leave almost no margin of safety. The latest quarter—₹212 Cr sales and ₹7 Cr net profit—shows the business is not enormously profitable per rupee of revenue. That is a service business likely with thin margins and limited pricing power; I have no evidence of a durable moat. ROCE at 12.85% is respectable but not exceptional, and ROE is unavailable. Debt/equity of 1.58 is high for my taste, especially with no dividend. Promoter holding of 72.87% aligns interests but also may reduce float. The Piotroski F-score of 7/9 and FairStock 38/100 mixed suggest improving fundamentals without a fortress balance sheet. At ₹246 the stock may have been interesting; at ₹588 near the 52-week high of ₹616.20, the market already discounts much future growth. As Graham would say, the margin of safety is thin. As Buffett might add, a fast grower can be a fine business, but only at a sensible price. I would watch whether profit growth continues, debt falls, ROCE improves, and margins widen. Until then, I’d put it in the too-hard pile or wait for a much lower price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer