KSE Ltd. (KSE) AI Stock Analysis

• Market Cap: ₹7.14B
• Dividend Yield: N/A
• Average Volume (3M): 4.52K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 767
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 10.27
• Shares Outstanding: 32,000,000
• 10 Day Avg. Volume: 7,296
• 30 Day Avg. Volume: 4,517
• PEG Ratio: 0.02
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 5.03
• 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: 72 Outperform
• Price Target: ₹248.00 ▲(9.13% Upside)

Score is driven primarily by improved FY2025 fundamentals (profitability rebound, strong cash generation, and low leverage) and an attractive valuation (low P/E with a ~3.5% dividend yield). This is partially offset by weak technical momentum, with the stock trading below key moving averages and a negative MACD, alongside historical volatility in earnings and cash flows.

Positive Factors

Recurring core product demand

Cattle feed is a high-frequency, staple purchase for dairy and livestock farmers, creating recurring revenue and stable baseline volumes. This durable demand profile supports predictable cash conversion, dealer/distributor channel economics, and resilience through short-term agri cycles over months.

Low leverage and strong capital structure

Very low net leverage provides financial flexibility to fund working capital, invest in capacity, and absorb commodity-driven margin swings. A conservative balance sheet reduces default risk in downturns and enables management to pursue strategic initiatives without forced financing pressure.

Robust operating and free cash flow in FY2025

Strong FY2025 cash generation indicates earnings are translating into real liquidity, enabling reinvestment, deleveraging, and shareholder returns. Reliable cash flow improves capital allocation choices and buffers the business against seasonal or input-cost shocks over a medium-term horizon.

Negative Factors

Slight revenue decline

Falling top-line reduces operating leverage and questions sustainability of recent margin gains. Persistent or structural revenue softness can limit capacity utilization benefits, constrain reinvestment, and make profitability improvements harder to sustain absent market-share gains or pricing power.

Multi-year earnings and cash-flow volatility

Historic swings in profitability and cash flows undermine forecasting and raise execution risk. Volatility complicates working-capital planning, increases the likelihood of reactive financing in weak years, and reduces confidence that FY2025 improvements will persist without operational consistency.

Sensitivity to raw-materials and working-capital

Feed margins are structurally exposed to commodity price volatility and procurement effectiveness; limited ability to fully pass through costs to end farmers can compress margins. Working-capital swings amplify cash volatility, creating a persistent structural risk to margin sustainability and free cash flow.

KSE Ltd. Business Overview & Revenue Model

Company Description

KSE Ltd. engages in the manufacture of compound cattle feed, extraction of oil from copra cake by solvent extraction, process and refining the same to edible grade and in dairying including ice cream. It operates through the following segments: Animal Feed, Oil Cake Processing, and Dairy. The Oil Cake Processing segment is involved in vegetable oil refining. The Dairy segment consists of milk and milk products including ice cream. The company was founded by Mampilly Chacko Paul and K. L. Francis on September 25, 1963 and is headquartered in Thrissur, India.

How the Company Makes Money

KSE Ltd. Financial Statement Overview

Summary

Strong FY2025 rebound with materially improved profitability (net margin ~5.5%) and solid cash generation (OCF ~1.41B; FCF ~1.26B) supported by a conservative balance sheet (debt-to-equity ~0.08) and strong ROE (~31%). Score is tempered by multi-year volatility in earnings/cash flows and slightly declining revenue (~-1.5%), raising sustainability risk.

Income Statement

FY2025 shows a sharp profitability rebound with net margin improving to ~5.5% (from ~1.0% in FY2024) and operating profitability strengthening meaningfully, despite a slight revenue decline (~-1.5%). Over the last several years, results look volatile (including weak/negative profitability periods), which lowers confidence in consistency even though the latest year is clearly strong.

Balance Sheet

Leverage is conservative with debt-to-equity staying low (~0.08 in FY2025), giving the company flexibility through cycles. Equity has grown and FY2025 return on equity is strong (~31%), indicating improved capital efficiency. The main watch-out is that returns have swung significantly across years, suggesting earnings quality and sustainability should be monitored.

Cash Flow

FY2025 cash generation is a major positive: operating cash flow is solid (~1.41B) and free cash flow is strong (~1.26B), with free cash flow covering most of net income (~0.89x), indicating profits are translating into cash. However, cash flow performance has been uneven historically (including negative operating and free cash flow in FY2024), which adds execution and working-capital risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.34B	16.50B	16.83B	16.10B	16.70B	15.43B
Gross Profit	2.99B	2.21B	1.44B	1.06B	1.28B	2.41B
EBITDA	1.58B	1.31B	317.93M	34.98M	142.95M	1.54B
Net Income	1.11B	913.07M	176.09M	-23.81M	65.71M	1.13B
Balance Sheet
Total Assets	0.00	3.57B	2.78B	2.68B	2.81B	3.35B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.63B	432.19M	740.47M	602.67M	1.22B
Total Debt	0.00	240.61M	208.43M	189.85M	190.90M	404.64M
Total Liabilities	-2.97B	599.85M	530.58M	538.73M	578.64M	918.63M
Stockholders Equity	2.97B	2.97B	2.25B	2.14B	2.23B	2.43B
Cash Flow
Free Cash Flow	0.00	1.26B	-234.71M	210.84M	-135.97M	303.84M
Operating Cash Flow	0.00	1.41B	-150.16M	342.83M	38.12M	342.43M
Investing Cash Flow	0.00	-1.19B	237.31M	-317.35M	550.56M	-419.25M
Financing Cash Flow	0.00	-159.82M	-71.72M	-82.91M	-505.04M	133.18M

KSE Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RADIANTCMS	73 Outperform	₹4.79B	12.27	―	4.81%	4.57%	-10.62%
KSE	72 Outperform	₹7.14B	5.61	―	―	―	―
STEL	67 Neutral	₹8.20B	27.76	―	―	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PAKKA	44 Neutral	₹4.19B	26.17	―	―	-11.28%	-62.38%
REPRO	43 Neutral	₹5.66B	-27.60	―	―	2.88%	-828.14%