KCP Ltd. (KCP) AI Stock Analysis

• Market Cap: ₹21.88B
• Dividend Yield: 0.14%
• Average Volume (3M): 9.36K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.85
• Revenue Growth: -6.76%
• EPS Growth: -31.51%
• Country: IN
• Employees: 925
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Construction Materials
• EPS (TTM): 2.56
• Shares Outstanding: 128,921,160
• 10 Day Avg. Volume: 6,958
• 30 Day Avg. Volume: 9,359
• PEG Ratio: -0.81
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 23.15
• 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: 59 Neutral
• Price Target: ₹186.00 ▲(4.82% Upside)

KCP Ltd.'s overall stock score is primarily influenced by its strong financial performance, despite challenges in cash flow consistency. Technical analysis indicates bearish momentum, which is a significant risk factor. The valuation is moderate, with a reasonable P/E ratio but low dividend yield.

Positive Factors

Financial Health

KCP's strong financial health and stable margins indicate a resilient business model capable of withstanding economic fluctuations, supporting long-term growth.

Balance Sheet Stability

A solid balance sheet with manageable debt and strong equity provides financial stability, enabling KCP to invest in growth opportunities and weather industry challenges.

Operational Efficiency

Healthy EBIT and EBITDA margins demonstrate KCP's operational efficiency, which is crucial for sustaining profitability and competitive advantage in the long run.

Negative Factors

Revenue Decline

The decline in revenue in 2025 raises concerns about KCP's ability to maintain growth momentum, potentially impacting its market position and long-term revenue streams.

Cash Flow Variability

Variability in cash flow, particularly the decline in 2025, suggests challenges in sustaining consistent cash generation, which could affect KCP's investment capacity and financial flexibility.

Net Profit Margin Fluctuations

Fluctuating net profit margins highlight potential cost management issues, which could pressure KCP's profitability and hinder its ability to deliver consistent shareholder returns.

KCP Ltd. Business Overview & Revenue Model

Company Description

The KCP Limited engages in the cement, heavy engineering, power generation, and hospitality businesses in India and Vietnam. It operates through Cement Unit, Engineering Unit, Power Generation Unit, Hotel, and Sugar segments. The company manufactures and sells cement; generates power from various sources, including thermal, hydel, solar, wind, and waste heat recovery; a range of heavy equipment for various industries, such as cement, sugar, power, mining (minerals), mineral processing, metal, oil and gas, chemicals and fertilizers, space and defense, industrial gases, and general engineering. In addition, the company operates a power co-generation plant. Further, it manufactures sugar; and operates Mercure Hyderabad KCP hotel in Hyderabad, India. The company was incorporated in 1941 and is based in Chennai, India.

How the Company Makes Money

KCP generates revenue through a multi-faceted business model that includes direct sales of its industrial products, service contracts, and partnerships with key players in various sectors. The company earns money by selling its proprietary chemicals and materials to manufacturers, as well as providing engineering solutions and consultancy services. Additionally, KCP has established strategic alliances with global distributors and suppliers, which enables it to expand its market reach and enhance its product offerings. The revenue streams are further bolstered by ongoing contracts with customers in the public and private sectors, allowing for a stable income through long-term agreements and repeat business.

KCP Ltd. Financial Statement Overview

Summary

KCP Ltd. shows robust financial health with strong revenue growth and stable profitability margins. The balance sheet reflects a well-managed debt structure and a strong equity base, indicating financial stability. However, cash flow variability suggests potential challenges in sustaining consistent cash generation.

Income Statement

KCP Ltd. has demonstrated strong revenue growth over the past years, with a notable increase in total revenue from 2020 to 2025. Despite a dip in 2025, the gross profit margin remains robust. However, net profit margins have shown some fluctuations, indicating potential cost management challenges. The company's EBIT and EBITDA margins are healthy, reflecting operational efficiency, but there was a significant decline in EBIT margin in 2025, suggesting potential operational issues during that period.

Balance Sheet

The balance sheet of KCP Ltd. shows a solid equity base, as indicated by a stable equity ratio over the years. The debt-to-equity ratio is manageable, reflecting a balanced leverage position, which is essential for stability in the construction materials industry. The return on equity is decent, although it slightly decreased in recent years, indicating room for improvement in generating returns for shareholders.

Cash Flow

KCP Ltd.'s cash flow analysis shows variability in free cash flow, with a decline in 2025. The operating cash flow to net income ratio suggests the company efficiently converts its net income into cash, although fluctuations in free cash flow growth rates indicate potential challenges in maintaining consistent cash generation. The free cash flow to net income ratio remains solid, supporting ongoing operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.14B	25.29B	28.40B	22.54B	21.03B	16.89B
Gross Profit	13.03B	8.40B	10.98B	8.76B	14.49B	11.24B
EBITDA	4.17B	3.67B	4.25B	2.15B	4.16B	3.89B
Net Income	1.78B	1.47B	1.89B	417.40M	1.88B	1.63B
Balance Sheet
Total Assets	0.00	30.99B	28.29B	26.18B	23.82B	21.12B
Cash, Cash Equivalents and Short-Term Investments	9.44B	9.78B	9.14B	6.43B	5.63B	4.39B
Total Debt	0.00	5.42B	4.80B	5.58B	4.37B	4.68B
Total Liabilities	-19.51B	11.47B	10.49B	10.98B	9.69B	9.19B
Stockholders Equity	19.51B	15.32B	14.10B	12.24B	11.77B	9.96B
Cash Flow
Free Cash Flow	0.00	1.14B	724.10M	-1.06B	1.03B	1.12B
Operating Cash Flow	0.00	3.16B	1.06B	-721.51M	1.39B	1.30B
Investing Cash Flow	0.00	-2.00B	697.50M	30.83M	-264.02M	288.53M
Financing Cash Flow	0.00	-529.30M	-1.69B	683.26M	-1.11B	-1.75B

KCP Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.45
• 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:KCP, the sentiment is Negative. The current price of 177.45 is below the 20-day moving average (MA) of 179.10, below the 50-day MA of 183.60, and below the 200-day MA of 199.24, indicating a bearish trend. The MACD of -2.77 indicates Positive momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KCP.

KCP Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JTLIND	66 Neutral	₹26.70B	35.23	―	0.21%	-9.50%	-39.90%
LAOPALA	64 Neutral	₹22.23B	22.01	―	3.64%	-8.09%	-12.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NILKAMAL	61 Neutral	₹20.46B	19.59	―	1.43%	12.40%	-9.69%
KCP	59 Neutral	₹21.88B	14.57	―	0.14%	-6.76%	-31.51%
SEPC	53 Neutral	₹14.26B	40.05	―	―	8.69%	51.66%

KCP Ltd. Corporate Events

KCP Confirms Full Compliance with SEBI Insider Trading Database Norms

The KCP Limited has certified that it is fully compliant with the Securities and Exchange Board of India’s Prohibition of Insider Trading Regulations regarding maintenance of a Structured Digital Database for the quarter ended 31 December 2025. The company’s compliance officer confirmed that a secure, access-controlled, non-tamperable internal database is in place, that all unpublished price-sensitive information events during the quarter were timely recorded with date, time and nature of information, and that no non-compliances were observed, underscoring KCP’s focus on robust governance and regulatory adherence for its stakeholders.

KCP Limited Files SEBI Dematerialisation Compliance Certificate for December Quarter

KCP Limited has submitted a compliance certificate to the stock exchanges for the quarter ended 31 December 2025, in accordance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The registrar and share transfer agent, Integrated Registry Management Services, confirmed that all physical share certificates received for dematerialisation during the quarter were duly processed, either accepted or rejected and communicated to the depositories, with accepted securities listed on the exchanges, physical certificates mutilated and cancelled, and the depositories’ names entered as registered owners within the stipulated 15 days, underscoring KCP’s adherence to securities handling and investor protection norms.