Kross Ltd (KROSS)
CyclicalFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹210.2 |
| Market Cap | ₹1,355.99 Cr |
| P/E Ratio | 23.49 |
| ROCE | 21.72% |
| ROE | 12.36% |
| Dividend Yield | 0% |
| Profit Growth | 24.42% |
| Debt/Equity | 0.11 |
| Sales Growth | 30.61% |
| Promoter Holding | 68.38% |
| 52-Week Range | ₹150.52 — ₹240.85 |
| Sector | Auto Components |
| Book Value | ₹75.92 |
Strengths
- Low debt/equity of 0.13 indicates a conservative balance sheet
- ROCE of 21.72% shows efficient use of capital
- Piotroski F-score of 7/9 suggests sound financial fundamentals
- Sales growth of 18.28% demonstrates healthy demand
- High promoter holding of 68.38% aligns owner interests
Concerns
- Profit growth of only 2.79% lags far behind sales growth, indicating margin pressure
- P/E of 25.48 and P/B of 3.07 are rich for an auto-component cyclical
- Zero dividend yield provides no income support to investors
- FairStock Score of 31/100 flags the stock as risky
AI Analysis
Let me look at Kross the way Graham would: price first, earnings second, balance sheet third. At ₹188.75, the market cap is ₹1,272 crore. I am being asked to pay 25.48 times trailing earnings and 3.07 times book value. Those are not bargain-basement multiples for an auto-component supplier, an industry that is tied to the boom-bust cycle of commercial vehicles and infrastructure spending. The company does have some things I respect. Debt/equity is just 0.13, so it is not leveraged. ROCE of 21.72% suggests capital is being used competently, and the Piotroski F-score of 7/9 tells me the financial footings are sound. Sales grew 18.28%, which shows demand. Promoter holding of 68.38% means owners have skin in the game. But here is my problem: profit growth is only 2.79%. A business cannot be worth a high multiple if its top line runs but the bottom line limps. The PEG ratio of 2.42 confirms that the price already outruns the growth. There is no dividend, so I get no income while I wait. With a 52-week range of ₹150.52 to ₹237.60, the stock has been volatile. The current price is not distressed enough to compensate for that risk. FairStock's score of 31/100 labels it risky, and I agree. I need either a lower price, a higher earnings trajectory, or proof that profit growth can catch up with sales growth. At 25 times earnings, Mr. Market is paying for perfection in a cyclical business. I would keep Kross on a watch list, not in the portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer