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

• Market Cap: ₹885.83M
• Dividend Yield: 2.3%
• Average Volume (3M): 909.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -32.19%
• EPS Growth: -1097.08%
• Country: IN
• Employees: 429
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• 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: ₹116.00 ▼(-10.04% Downside)

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

Improved Free Cash Flow

A return to positive free cash flow in 2025 indicates the business can internally fund working capital and some capex, lowering reliance on external financing. For capital-intensive, cyclical industries this durable cash generation improves resilience and strategic flexibility over months.

Low Financial Leverage

A very low debt-to-equity ratio provides a structural buffer against downturns and reduces interest burden, enabling management to invest in operations or sustain volumes during cycles. Lower leverage also preserves refinancing optionality and supports longer-term stability.

Diversified Industrial Segments

Operating both cement and sugar provides structural revenue diversification across end markets and seasonality profiles. This reduces dependence on a single cyclical demand driver, helping stabilize cash flow and utilization over multi-month horizons in volatile construction cycles.

Negative Factors

Sustained Net Losses

Persistent negative net margins erode equity and reinvestment capacity, limiting the company's ability to scale or modernize assets. Over a multi-month horizon this undermines competitiveness, raises financing costs, and makes execution of strategic initiatives more difficult without a clear profitability turnaround.

Sharp Revenue Decline

A ~32% revenue decline materially weakens scale economies and worsens fixed-cost absorption in cement and sugar operations. Sustained revenue contraction over several months can cause margin pressure, underutilized plants and requires structural actions to restore pricing, volumes or cost base.

Negative EBITDA and Weak Operating Margins

Negative EBITDA signals core operations are loss-making before financing and taxes, indicating structural issues in pricing, costs or mix. Even with improved cash flow, persistent negative operating profitability limits sustainable cash generation and poses long-term viability risks without operational fixes.

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. generates revenue through multiple streams. The primary revenue source is the sale of cement, which includes various types such as ordinary Portland cement and specialized cement products targeted at the construction industry. Additionally, the company earns significant income from its sugar production operations, selling both raw and refined sugar to various markets. The power generation from bagasse also contributes to its revenue, as it can either be utilized for its own operations or sold to the grid. Strategic partnerships with suppliers and distributors enhance its market reach, while the company's ability to leverage economies of scale in production helps maintain competitive pricing and improve profit margins.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	847.54M	892.23M	1.56B	1.54B	1.54B	1.23B
Gross Profit	477.33M	149.55M	330.86M	260.37M	1.03B	785.97M
EBITDA	-89.51M	-58.67M	59.95M	23.36M	320.81M	138.82M
Net Income	-149.88M	-133.05M	-13.45M	-44.65M	193.62M	12.54M
Balance Sheet
Total Assets	0.00	2.53B	3.51B	3.45B	3.12B	3.00B
Cash, Cash Equivalents and Short-Term Investments	592.11M	592.11M	377.14M	482.52M	8.53M	10.10M
Total Debt	0.00	184.22M	941.28M	834.77M	351.74M	309.36M
Total Liabilities	-2.09B	436.46M	1.25B	1.16B	763.86M	812.20M
Stockholders Equity	2.09B	2.09B	2.25B	2.29B	2.36B	2.19B
Cash Flow
Free Cash Flow	0.00	137.20M	-168.34M	-392.33M	-713.10M	121.78M
Operating Cash Flow	0.00	143.67M	-131.49M	-379.42M	-711.60M	130.14M
Investing Cash Flow	0.00	1.06B	91.30M	-18.00M	703.59M	110.41M
Financing Cash Flow	0.00	-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: Neutral

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 118.08, above the 50-day MA of 127.13, and below the 200-day MA of 145.52, indicating a bearish trend. The MACD of -4.76 indicates Positive momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of 24.91 is Neutral, 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	11.17	―	0.33%	8.25%	13.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹3.28B	-26.03	―	―	0.19%	-2962.74%
BVCL	55 Neutral	₹1.03B	27.91	―	―	-2.41%	-4.51%
KAKATCEM	53 Neutral	₹885.83M	-3.26	―	2.30%	-32.19%	-1097.08%
ALKALI	53 Neutral	₹688.24M	-26.00	―	0.62%	2.98%	38.45%
REGENCERAM	49 Neutral	₹1.17B	80.96	―	―	574.56%	―

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.

Kakatiya Cement Reports Loss of Share Certificates

Kakatiya Cement Sugar & Industries Ltd. has informed stock exchanges about the loss of share certificates reported by a shareholder. The company is taking necessary steps to address the issue and will issue a Letter of Confirmation upon completion of formalities. This announcement is part of the company’s compliance with SEBI regulations, ensuring transparency and maintaining shareholder trust.

Kakatiya Cement Reports Financial Results and Settles Dispute

Kakatiya Cement Sugar & Industries Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025, showing a decline in net profit due to exceptional items. The company settled a long-standing dispute with TG TRANSCO by paying Rs.737.31 lakhs, impacting its financial performance, and this settlement is expected to influence its future financial stability and stakeholder relations.