Kakatiya Cement Sugar & Industries Ltd. (KAKATCEM) AI Stock Analysis

• Market Cap: ₹807.70M
• Dividend Yield: 2.3%
• Average Volume (3M): 909.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -32.19%
• EPS Growth: -1097.08%
• Country: IN
• Employees: 429
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -6.32
• Shares Outstanding: 7,773,858
• 10 Day Avg. Volume: 95
• 30 Day Avg. Volume: 909
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 8.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ₹105.00 ▼(-18.57% Downside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

The overall stock score is primarily impacted by weak financial performance and technical indicators. The company's ongoing losses and negative P/E ratio weigh heavily on its valuation. While cash flow improvements offer some liquidity, the bearish technical signals and lack of earnings call data or corporate events further contribute to a cautious outlook.

Positive Factors

Business diversification

The company operates in both cement and sugar, providing diversified revenue streams. This dual-segment exposure can smooth cash flows across commodity cycles, reduce single-market dependency, and offer operational flexibility for resource allocation over the next several months.

Lower leverage

A markedly lower debt-to-equity ratio indicates reduced financial leverage and interest burden, improving solvency and financial flexibility. This stronger capital structure supports the firm's ability to withstand cyclical downturns and fund near-term working capital or maintenance capex without heavy refinancing risk.

Improved cash generation

Free cash flow turned positive in 2025 and operating cash flow metrics improved, signaling better cash conversion. Sustained positive FCF enhances liquidity, funds operations or selective investments, and reduces reliance on external financing, aiding structural balance-sheet repair.

Negative Factors

Persistent net losses

Ongoing net losses erode retained earnings and impair return metrics. Persistent negative profitability limits the company’s ability to self-fund growth, reduces investor confidence, and increases reliance on cash reserves or external funding to maintain operations until profitability is restored.

Revenue decline

A material revenue contraction signals weakening demand or market share loss. Continued top-line decline compresses scale economies, pressures fixed-cost absorption, and makes margin recovery harder, challenging the firm’s path to sustainable operating profitability over the medium term.

Margin deterioration

Declining gross margin and a negative EBITDA margin indicate rising cost pressure or weaker pricing power. Operational margin deterioration reduces free cash flow durability and increases the difficulty of restoring positive net income, constraining reinvestment capacity and long-term competitiveness.

Kakatiya Cement Sugar & Industries Ltd. Business Overview & Revenue Model

Company Description

Kakatiya Cement Sugar and Industries Limited manufactures and sells Portland cement in India. The company operates through three segments: Cement, Sugar, and Power. It also produces and sells sugar; crushes sugar-cane; and owns and operates a 17-megawatt cogeneration power plant. The company was formerly known as Kakatiya Cements Limited. Kakatiya Cement Sugar and Industries Limited was incorporated in 1979 and is based in Hyderabad, India.

How the Company Makes Money

Kakatiya Cement Sugar & Industries Ltd. makes money mainly by selling cement produced at its manufacturing facilities to a mix of customers such as dealers/retailers, contractors, real-estate developers, and institutional/infrastructure buyers. Revenue in this segment is generated from the invoiced sale of cement (and, where applicable, related cement products) and is influenced by dispatch volumes, realizations (pricing), regional demand, raw-material and energy costs, and logistics/freight dynamics. The company also earns revenue from its sugar business (to the extent the segment is operational in the reporting period) through the sale of sugar to wholesalers, industrial users, and other trade counterparties. Sugar revenues are typically volume- and price-driven and can be affected by commodity price cycles and regulatory/industry factors. If applicable in specific periods, additional earnings can come from allied/by-product streams linked to these operations (for example, sale of by-products or ancillary services); however, specific by-product lines, material partnerships, customer concentration, or segment-wise contribution details are null.

Kakatiya Cement Sugar & Industries Ltd. Financial Statement Overview

Summary

Kakatiya Cement Sugar & Industries Ltd. faces challenges in revenue and profitability, with consistent net losses impacting its income statement. The balance sheet shows moderate leverage and equity stability, but return measures are weak. Cash flows have improved, offering some liquidity advantage. The company must focus on turning net income positive and stabilizing operations to enhance financial health.

Income Statement

The company has shown volatility in its revenue and profitability over the years. The gross profit margin in 2025 was approximately 32.1%, showing a decrease from previous years. The net profit margin has been negative for the past few years, indicating ongoing losses. Revenue growth has fluctuated, with a decline in 2025 compared to 2024. The EBIT margin is relatively low, and the EBITDA margin turned negative in 2025, pointing to operational challenges.

Balance Sheet

The balance sheet reflects a reasonable equity ratio, with stockholders' equity covering a significant portion of total assets. However, the debt-to-equity ratio decreased to 0.09 in 2025, implying reduced leverage. Despite this, the return on equity is negative due to net losses, which raises concerns about overall financial stability.

Cash Flow

The cash flow statement shows improvements with a positive free cash flow in 2025 after negative figures in previous years. The operating cash flow to net income ratio has improved, but the free cash flow to net income ratio is less reliable due to negative net income. Overall, the cash position has strengthened, providing some financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	881.20M	892.23M	1.56B	1.54B	1.54B	1.23B
Gross Profit	432.73M	149.55M	330.86M	260.37M	1.03B	785.97M
EBITDA	-226.03M	-58.67M	59.95M	23.36M	320.81M	138.82M
Net Income	-271.65M	-133.05M	-13.45M	-44.65M	193.62M	12.54M
Balance Sheet
Total Assets	2.29B	2.53B	3.51B	3.45B	3.12B	3.00B
Cash, Cash Equivalents and Short-Term Investments	569.82M	592.11M	377.14M	482.52M	8.53M	10.10M
Total Debt	93.21M	184.22M	941.28M	834.77M	351.74M	309.36M
Total Liabilities	375.01M	436.46M	1.25B	1.16B	763.86M	812.20M
Stockholders Equity	1.92B	2.09B	2.25B	2.29B	2.36B	2.19B
Cash Flow
Free Cash Flow	32.97M	137.20M	-168.34M	-392.33M	-713.10M	121.78M
Operating Cash Flow	36.34M	143.67M	-131.49M	-379.42M	-711.60M	130.14M
Investing Cash Flow	-296.51M	1.06B	91.30M	-18.00M	703.59M	110.41M
Financing Cash Flow	-115.24M	-831.66M	31.87M	402.68M	6.43M	-238.21M

Kakatiya Cement Sugar & Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 128.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KAKATCEM, the sentiment is Negative. The current price of 128.95 is above the 20-day moving average (MA) of 108.29, above the 50-day MA of 113.87, and below the 200-day MA of 139.44, indicating a bearish trend. The MACD of -3.63 indicates Positive momentum. The RSI at 37.47 is Neutral, neither overbought nor oversold. The STOCH value of 18.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KAKATCEM.

Kakatiya Cement Sugar & Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEARDSELL	65 Neutral	₹1.46B	14.39	―	0.33%	8.25%	13.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹3.83B	15.95	―	―	0.19%	-2962.74%
BVCL	55 Neutral	₹840.75M	-10.25	―	―	-2.41%	-4.51%
KAKATCEM	53 Neutral	₹807.70M	-5.21	―	2.30%	-32.19%	-1097.08%
REGENCERAM	49 Neutral	₹1.04B	-5.94	―	―	574.56%	―
ALKALI	47 Neutral	₹567.27M	-14.73	―	0.62%	2.98%	38.45%

Kakatiya Cement Sugar & Industries Ltd. Corporate Events

Kakatiya Cement Confirms Regulatory Compliance on Share Dematerialisation for Q3 FY2025-26

Kakatiya Cement Sugar & Industries Ltd. has submitted a statutory certificate to the stock exchanges confirming that details of its shares dematerialized during the quarter ended 31 December 2025 have been duly furnished in compliance with Regulation 54(5) of the SEBI (Depositories and Participants) Regulations, 1996. The confirmation, supported by its registrar and transfer agent XL Softech Systems Ltd., underscores the company’s adherence to regulatory requirements on dematerialization, reinforcing transparency and proper handling of its listed securities for investors and market participants.

Kakatiya Cement Sugar & Industries Closes Trading Window Ahead of Q3 Results

Kakatiya Cement Sugar & Industries Ltd. has announced the closure of its trading window for dealings in the company’s shares from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ending 31 December 2025, in compliance with SEBI’s Prohibition of Insider Trading Regulations. The company will inform the stock exchanges of the date of the board meeting to consider these quarterly results once it is finalized, and has communicated the trading restrictions to all designated persons, underscoring its adherence to regulatory norms on insider trading and disclosure.