KDDL Ltd (KDDL)
CyclicalFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,930.2 |
| Market Cap | ₹4,833.86 Cr |
| P/E Ratio | 49.75 |
| ROCE | 14.12% |
| ROE | 21.72% |
| Dividend Yield | 0.51% |
| Profit Growth | 43.7% |
| Debt/Equity | 0.27 |
| Sales Growth | 36.3% |
| Promoter Holding | 50.43% |
| 52-Week Range | ₹1,990 — ₹4,150 |
| Sector | Consumer Durables |
| Book Value | ₹878.35 |
Strengths
- ROE of 21.72% shows strong return on shareholder equity
- Low debt-to-equity of 0.25 provides financial cushion
- Sales growth of 26.42% indicates healthy demand
- Promoter holding of 50.43% aligns management with minority shareholders
- Latest quarter sales of ₹597 Cr reflect meaningful scale
Concerns
- Profit growth of -26.02% despite 26.42% sales growth points to severe margin compression
- P/E of 35.59 and P/B of 10.05 leave little margin of safety
- Piotroski F-Score of 4/9 suggests deteriorating fundamentals
- Dividend yield of 0.62% is negligible for downside protection
AI Analysis
Looking at KDDL, I first ask: what does the owner earn, and how sure am I? The company has a return on equity of 21.72% and a debt-equity ratio of only 0.25. Those are encouraging. But the last year tells a different story. Sales grew 26.42%, yet profits fell 26.02%. That means the business is not converting revenue growth into shareholder earnings. In the latest quarter, sales were ₹597 Cr and net profit just ₹38 Cr—a thin margin. I don't like paying high multiples for uncertain earnings. At ₹2,552.55, the P/E is 35.59 and the P/B is 10.05, while book value is only ₹254.01. That is a rich price for a company whose F-Score is only 4 out of 9. The Piotroski score tells me fundamentals are weakening, not improving. The 52-week range from ₹1,990 to ₹4,150 also reminds me how volatile this stock can be. Promoter holding at 50.43% is good; owners still have skin in the game. But dividend yield of 0.62% gives me little while I wait. Graham would say price is not value. PEG of 1.35 appears reasonable only if profit growth resumes; with profit declining, that ratio is misleading. This looks like a cyclical business enjoying a sales up-cycle but suffering margin compression. At FairStock Score 34/100, I see more risk than reward. I'd want lower price or demonstrated margin recovery before committing.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer