Khaitan (India) (KHAITANLTD)

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

Key Financials

AI Analysis

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

Let's look at Khaitan (India) through the lens of a business owner. The first thing that catches my eye is the price: at ₹120.95, the market cap is just ₹45 crore. That's a microcap, and I must be honest—small size brings fragility. But the numbers tell an interesting story. P/E of 6.04 is cheap, especially when profits are growing at 58%. Even with a 50% sales growth, the PEG ratio of 0.11 suggests the market is dramatically underpricing this growth. ROE is a sparkling 28.59%, and debt-to-equity is only 0.38, so the balance sheet isn't a worry. Promoter holding of 60.24% aligns owners with minority shareholders, which I appreciate. But I'm not blind to the cracks. ROCE shows as 0.00%, which is nonsensical given the ROE; either the data is flawed, or the company's capital efficiency is far worse than it appears. I'd demand an explanation before investing a rupee. The latest quarter shows sales of ₹27 crore but net profit of just ₹1 crore—a thin 3.7% margin. That's a red flag for a consumer electronics firm in a competitive, low-margin industry. Also, no dividend at this stage: management is reinvesting, or cash is tight. At book value of ₹49.40, the P/B of 2.45 isn't dirt cheap, but the earnings power justifies some premium if growth continues. This looks like a fast grower, but the quality of earnings needs scrutiny. I want to see whether those growth rates translate into consistent cash flows and whether ROCE improves. If the company can sustain even half its growth, the price gives a margin of safety. But in microcaps, patience is key, and one bad quarter can change the story.

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