Kapston Services Limited (KAPSTON) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: 28.16%
• EPS Growth: 10.62%
• Country: IN
• Employees: 355
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 3.48
• Shares Outstanding: 20,288,122
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.62
• Price to Book (P/B): 5.19
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -9.72
• 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: 46 Neutral
• Price Target: ―

The score is primarily held back by financial performance risks—negative and volatile cash flows in FY2025 and higher leverage—despite solid revenue/earnings growth. Technical and valuation inputs are not available, so they do not provide positive confirmation or downside support in this assessment.

Positive Factors

Revenue Growth

Strong multi-year revenue growth indicates robust demand for services and effective client acquisition, supporting long-term business expansion.

Earnings Growth

Consistent earnings growth reflects operational efficiency and the ability to convert revenue into profit, enhancing shareholder value over time.

Return on Equity

Strong return on equity suggests effective use of shareholder capital to generate profits, indicating management's capability in capital allocation.

Negative Factors

Thin Profit Margins

Thin profit margins limit the company's ability to absorb cost increases or pricing pressures, potentially impacting long-term profitability.

Rising Leverage

Increased leverage reduces financial flexibility and raises risk, especially if cash flow remains volatile, potentially affecting future growth.

Negative Cash Flow

Negative cash flow indicates challenges in funding operations and growth internally, increasing reliance on external financing and risk exposure.

Kapston Services Limited Business Overview & Revenue Model

Company Description

Kapston Services Limited (KAPSTON) is a diversified company operating primarily in the sectors of facility management, logistics, and specialized labor services. The company provides a comprehensive range of solutions, including cleaning, maintenance, security services, and staffing solutions tailored to meet the unique needs of various industries such as healthcare, education, and corporate environments. KAPSTON focuses on delivering high-quality, reliable services that enhance operational efficiency and client satisfaction.

How the Company Makes Money

KAPSTON generates revenue through multiple streams, primarily by offering contract-based services in facility management and logistics. The company enters into long-term contracts with clients, ensuring a steady income from recurring service agreements. Additionally, KAPSTON earns revenue from one-off projects and specialized labor services, which are billed on a project basis. Key partnerships with various corporations and government entities enhance their credibility and lead to consistent business opportunities. The company also focuses on optimizing operational efficiencies and cost management, which contributes positively to its profit margins.

Kapston Services Limited Financial Statement Overview

Summary

Strong multi-year revenue and earnings growth is offset by very thin profitability (FY2025 gross margin ~5.5%, net margin ~2.6%), rising leverage (debt-to-equity ~1.9x), and especially weak cash generation with FY2025 operating cash flow and free cash flow turning deeply negative.

Income Statement

Revenue has expanded strongly over the last several years, with a particularly large step-up in FY2025, supporting steady growth in EBIT and net income. Profitability is positive but thin (FY2025 gross margin ~5.5% and net margin ~2.6%), leaving limited cushion if costs rise or pricing weakens. Overall, the trajectory is good, but the margin profile remains a key constraint.

Balance Sheet

Leverage is meaningful and rising: total debt increased sharply in FY2025 and debt-to-equity moved up to ~1.9x, which reduces financial flexibility. Equity has grown and returns on equity are solid (about 20% in FY2025), indicating the business can generate profits on the capital base. Still, the higher debt load is a clear risk factor if cash generation stays volatile.

Cash Flow

Cash generation is the weakest area. FY2025 operating cash flow turned negative and free cash flow was deeply negative, a major deterioration versus FY2024’s modestly positive levels. The pattern across years is choppy (several years with negative operating and/or free cash flow), which raises concerns about working-capital swings and the company’s ability to self-fund growth without relying on additional borrowing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.27B	6.89B	5.19B	3.97B	2.71B	2.12B
Gross Profit	7.19B	377.72M	322.58M	163.60M	142.77M	180.25M
EBITDA	348.20M	317.50M	237.52M	157.08M	128.50M	165.66M
Net Income	206.45M	178.37M	125.71M	50.70M	24.73M	64.18M
Balance Sheet
Total Assets	0.00	2.99B	2.07B	1.80B	1.62B	1.24B
Cash, Cash Equivalents and Short-Term Investments	92.44M	247.78M	61.59M	57.31M	63.71M	44.04M
Total Debt	0.00	1.69B	1.02B	922.52M	847.11M	513.85M
Total Liabilities	-888.75M	2.10B	1.35B	1.21B	1.09B	727.54M
Stockholders Equity	888.75M	888.78M	715.76M	586.62M	535.44M	509.01M
Cash Flow
Free Cash Flow	0.00	-474.29M	28.24M	-2.67M	-245.05M	121.52M
Operating Cash Flow	0.00	-83.33M	45.34M	10.20M	-228.72M	150.11M
Investing Cash Flow	0.00	-389.96M	-23.33M	-12.25M	-16.03M	-28.13M
Financing Cash Flow	0.00	474.85M	-19.15M	-139.43M	-81.00M	5.55M

Kapston Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
BRNL	50 Neutral	₹1.82B	1.01	―	―	-57.13%	―
MBLINFRA	49 Neutral	₹3.98B	-3.80	―	―	12.96%	-132.20%
KAPSTON	46 Neutral	―	―	―	―	28.16%	10.62%
SADBHAV	41 Neutral	₹1.05B	-0.64	―	―	―	―
IL&FSENGG	40 Underperform	₹2.94B	-170.96	―	―	-6.13%	98.35%
SICALLOG	39 Underperform	₹5.91B	-396.45	―	―	76.34%	94.50%

Kapston Services Limited Corporate Events

Kapston Services Closes Trading Window Ahead of Q3 FY2025 Results

Kapston Services Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the third quarter and nine months ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct. The move is a standard compliance measure designed to prevent insider trading ahead of financial disclosures, signaling the upcoming release of results that may be material for investors, with the exact board meeting date to consider these results to be communicated separately.