KSH Internationa (KSHINTL)

FairStock Score: 39/100 — MIXED

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

Key Financials

Strengths

• Promoter holding at 74.58% aligns owners with minority shareholders.
• Revenue momentum strong: sales grew 58.52% and latest quarter sales were ₹818 Cr.
• ROCE of 21.45% suggests reasonable capital efficiency.
• PEG of 0.65 looks low if the high sales growth continues.

Concerns

• Profit growth is negative at -4.62% despite 58.52% sales growth; latest quarter net margin is only ~2.8%.
• Valuation is rich at P/E of 37.93 and P/B of 10.13, leaving little margin of safety.
• Debt/Equity of 1.40 and zero dividend weaken financial flexibility.
• Piotroski F-Score of 4/9 flags deteriorating fundamentals.

AI Analysis

Let me think about KSH International the way I think about any business. The first question is whether the company has a durable moat. It makes electrical cables, a competitive and cyclical commodity-like business. The numbers tell me that while demand is strong—sales jumped 58.52%—profits actually fell 4.62%. That is a warning flag: top-line growth that does not reach the bottom line is often low-quality growth. The latest quarter had sales of ₹818 Cr but a net profit of only ₹23 Cr, a margin under 3%. That is not the kind of pricing power I look for. The balance sheet also worries me. Debt/equity of 1.40 combined with zero dividend means shareholders are waiting for growth to service that leverage. ROCE of 21.45% is decent, but with P/E of 37.93 and P/B of 10.13, I am paying a rich price. A Piotroski score of 4/9 suggests weak financial health, not a company screaming 'buy'. Yes, promoter holding of 74.58% is positive—owners have skin in the game—but I still must pay the market price. The stock has fallen from ₹1058 to ₹624.90, so Mr. Market has cooled off. Yet at ₹624.90, I am still being asked to pay nearly 38 times trailing earnings for a business with negative profit growth. The PEG ratio of 0.65 is only attractive if you naively use the 58.52% sales growth, but I value earnings, not just sales. Benjamin Graham said the margin of safety protects against error. At this price, with high debt, falling profits, and no dividend, I do not see enough margin of safety. This may be a cyclical grower, but I'll wait for better quality or a much lower price.

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