Kalpataru Proj. (KPIL)
Fast GrowerFairStock Score: 68/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,352.2 |
| Market Cap | ₹23,091.86 Cr |
| P/E Ratio | 20.32 |
| ROCE | 15.95% |
| ROE | 12.76% |
| Dividend Yield | 0.81% |
| Profit Growth | 32.18% |
| Debt/Equity | 0.46 |
| Sales Growth | 9.31% |
| Free Cash Flow | ₹196 Cr |
| Promoter Holding | 33.57% |
| 52-Week Range | ₹1,007.1 — ₹1,499.75 |
| Sector | Construction |
| Book Value | ₹455.38 |
Strengths
- Revenue growth of 24.56% and profit growth of 58.44% show strong recent momentum.
- Five-year revenue CAGR of 11.50% indicates sustained expansion.
- ROE of 12.76% and ROCE of 15.95% reflect healthy capital efficiency.
- Piotroski F-Score of 8/9 and positive free cash flow of ₹196 Cr suggest solid financial health.
- Debt/equity of 0.69 is manageable for a capital-intensive civil construction business.
Concerns
- Valuation is expensive: P/E of 24.94, P/B of 3.31, and price far above Graham Number of ₹667.89 and DCF value of ₹422.98.
- Margin of safety is deeply negative at -85.68%.
- EV/EBITDA of 104.06 is extremely elevated and signals rich valuation.
- Altman Z-Score of 2.06 is in the caution zone, while promoter holding of 33.57% is relatively low.
AI Analysis
Kalpataru Projects has the look of a decent construction business, but as Graham taught us, price is part of the investment, not just the story. The recent numbers are encouraging: sales up 24.56%, profit up 58.44%, and a five-year revenue CAGR of 11.50%. ROE of 12.76% and ROCE of 15.95% are respectable, while debt/equity of 0.69 and positive free cash flow of ₹196 Cr suggest the balance sheet is manageable. The Piotroski score of 8/9 also points to solid financial health. Even the latest quarter, with sales of ₹6,665 Cr and net profit of ₹149 Cr, shows momentum. But at ₹1,263.55, I am being asked to pay 24.94 times earnings and 3.31 times book value. Graham's Number is only ₹667.89, and the DCF value is ₹422.98. That leaves a negative margin of safety of roughly 85%. The EV/EBITDA of 104.06 is a red flag, and the Altman Z-score of 2.06 sits in the caution zone. Promoter holding of 33.57% is also lower than I would like in an Indian construction company. This may be a fast-growing enterprise, but Mr. Market has already priced in a great deal of optimism. In Buffett's words, it is far better to pay a fair price for a wonderful business; here, I am not even getting a fair price. I would wait for a wider margin of safety before committing hard-earned capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer