KSE Ltd. (KSE) AI Stock Analysis

• Market Cap: ₹5.86B
• Dividend Yield: N/A
• Average Volume (3M): 4.52K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 767
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 5.11
• 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: ₹211.00 ▼(-7.15% Downside)
• Action: N/A Date: 01/20/26
• Date: Action: N/A 01/20/26

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

Cash generation

FY2025 OCF (~1.41B) and FCF (~1.26B), with FCF covering ~0.89x of net income, shows profits are converting to cash. Durable cash generation supports reinvestment, dividends and working-capital needs, reducing reliance on external financing and improving resilience through commodity cycles.

Conservative balance sheet

A debt-to-equity of ~0.08 provides meaningful financial flexibility to withstand input-cost shocks and seasonal working-capital swings. Low leverage allows the company to fund capex, distribution expansion or buffer losses without heavy refinancing, enhancing long-term stability across cycles.

Profitability rebound / ROE

Material improvement to net margin (~5.5%) and ROE (~31%) indicates stronger capital efficiency and operational improvement. If sustained, higher margins and ROE enable internal funding for growth, support shareholder returns and reflect improved procurement, pricing and manufacturing execution.

Negative Factors

Revenue decline

A modest but persistent revenue decline (~-1.5%) alongside a margin rebound raises questions about demand and market share. Continued top-line weakness would limit scale benefits, strain margin sustainability and require either pricing power or new channels/products to restore durable growth.

Earnings & cash volatility

Multi-year volatility in earnings and cash flows—including negative OCF/FCF in FY2024—reduces predictability and complicates planning. This increases execution risk for capital allocation and makes dividends, capex and working-capital management more vulnerable to commodity and seasonal swings.

Input-cost exposure

Structural sensitivity to volatile raw-material prices and working-capital requirements means margins rely on procurement scale and execution. Without durable hedging, supplier contracts or scale advantages, input-cost spikes and tight working-capital can quickly erode margins and cash conversion.

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 primarily makes money by manufacturing and selling compound cattle feed (a high-volume, recurring-consumption product) to dairy farmers and other livestock owners via dealers/distributors and direct institutional buyers where applicable; revenue is typically driven by sales volume and prevailing input-cost-linked pricing. The company also generates revenue from dairy/food-related operations (such as procurement/processing and sale of dairy products) where applicable within its operating footprint. Profitability is influenced by raw material costs (e.g., grains and oilseed by-products), procurement efficiency, manufacturing utilization, distribution reach, and working-capital management. Specific revenue split by segment, named major customers/partners, and contract structures are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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
KSE	72 Outperform	₹5.86B	10.91	―	―	―	―
RADIANTCMS	69 Neutral	₹3.67B	12.62	―	4.81%	4.57%	-10.62%
STEL	67 Neutral	₹7.97B	18.24	―	―	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
REPRO	49 Neutral	₹4.95B	221.21	―	―	2.88%	-828.14%
PAKKA	46 Neutral	₹3.86B	16.80	―	―	-11.28%	-62.38%