Kalyani Steels Ltd (KSL) AI Stock Analysis

• Market Cap: ₹30.60B
• Dividend Yield: 1.36%
• Average Volume (3M): 2.47K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.39
• Revenue Growth: -0.46%
• EPS Growth: 4.85%
• Country: IN
• Employees: 94
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 14.19
• Shares Outstanding: 43,653,060
• 10 Day Avg. Volume: 3,130
• 30 Day Avg. Volume: 2,469
• PEG Ratio: 4.33
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 9.33
• 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: 76 Outperform
• Price Target: ₹791.00 ▲(6.10% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

Kalyani Steels Ltd's strong financial performance is the most significant factor, supported by consistent revenue growth and stable margins. Technical analysis suggests short-term bullish momentum, though caution is advised due to potential overbought conditions. The valuation is reasonable, but not compellingly attractive.

Positive Factors

Specialty-steel business model

Kalyani Steels' focus on alloy and carbon long products for engineering and automotive customers is a durable business model. The specialty nature of its products supports more stable industrial demand, higher technical barriers to entry, and closer customer relationships, aiding long-term revenue resilience.

Margin sustainability

The company's track record of stable gross and net margins, along with robust EBIT/EBITDA margins, indicates effective cost and operations management. Sustained margins imply durable profitability across cycles, providing capacity to invest in product quality and withstand raw material swings over months to years.

Balance sheet strength and cash generation

A healthy equity ratio and low leverage combined with recovering free cash flow create financial flexibility. This durable balance-sheet strength reduces refinancing risk, funds capital expenditure cycles, and supports consistent operations and potential strategic investments over the medium term.

Negative Factors

Cyclic end-market exposure

Heavy exposure to automotive and engineering end markets embeds cyclical demand risk into Kalyani Steels' revenue profile. Structural downturns or slower capital expenditures in these sectors can materially reduce volumes and utilization, pressuring margins and earnings over a multi-month to multi-quarter horizon.

Recent revenue contraction

A recent negative revenue growth reading (~-1.8%) signals near-term demand headwinds or adverse mix shifts despite longer-term growth claims. If this trend persists, it could erode operating leverage and strain margin sustainability, requiring closer monitoring of order flows and end-market recovery.

Free cash flow volatility

Although free cash flow has recovered, historical volatility and prior negative periods show FCF can swing with capex and working capital cycles. Such variability can constrain reinvestment or dividend flexibility and increase execution risk during periods of industry stress over several quarters.

Kalyani Steels Ltd Business Overview & Revenue Model

Company Description

Kalyani Steels Limited manufactures and sells iron and steel products. The company provides rolled bars for various automotive applications, including crankshaft, camshaft, connecting rods, gears, transmission shafts, axle beams, steering knuckles, and others; rolled bars for engineering applications comprising alloyed steels for use in energy, railways, defense, fasteners, material handling, etc.; and steel for use in the earthmoving, cement, sugar, steel, coal, ship-building, and oilfield industries, as well as general engineering equipment. It also offers round cast for seamless tube industry; and machined bars for aluminum smelting industry. The company serves various component manufacturers of commercial vehicles, two wheelers, diesel engines, bearings, tractors, turbines, and rail in India and internationally. Kalyani Steels Limited was incorporated in 1973 and is headquartered in Pune, India.

How the Company Makes Money

KSL primarily makes money by manufacturing and selling specialty steel products (notably alloy and carbon steel long products) to business customers, with revenue recognized from the sale of these steel goods. Its key revenue stream is the realization from steel product shipments, typically influenced by (a) sales volumes to end-use segments such as automotive and engineering/industrial customers and (b) prevailing steel and alloying-element price dynamics that affect selling prices and margins. Specific details on revenue split by product, customer concentration, contract structure (spot vs. long-term), export share, downstream value-added services, or named strategic partnerships are null.

Kalyani Steels Ltd Financial Statement Overview

Summary

Kalyani Steels Ltd demonstrates strong financial performance with consistent revenue growth, stable profit margins, and efficient asset management. The balance sheet is robust with a low debt-to-equity ratio, and cash flow generation is strong despite past fluctuations.

Income Statement

Kalyani Steels Ltd has shown impressive growth in revenue over the years, with a consistent upward trajectory. The gross profit margin and net profit margin have remained stable, indicating effective cost management and operational efficiency. The company has also maintained strong EBIT and EBITDA margins, reflecting robust core operations.

Balance Sheet

The balance sheet reveals a strong equity position with a healthy equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent financial leverage management. Return on Equity (ROE) is commendable, showcasing efficient use of shareholders' funds to generate profit.

Cash Flow

Cash flow analysis indicates strong free cash flow generation, recovering from previous negative periods. The operating cash flow to net income ratio is solid, ensuring operational activities generate sufficient cash. However, fluctuations in free cash flow in past years highlight the need to monitor capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	19.63B	19.82B	19.59B	18.99B	16.96B	11.66B
Gross Profit	5.22B	5.57B	5.29B	4.28B	4.41B	3.51B
EBITDA	4.23B	3.73B	4.20B	3.02B	3.85B	2.63B
Net Income	2.66B	2.56B	2.49B	1.67B	2.43B	1.90B
Balance Sheet
Total Assets	0.00	27.32B	25.73B	23.51B	22.58B	16.50B
Cash, Cash Equivalents and Short-Term Investments	7.47B	7.48B	5.87B	7.48B	9.73B	6.25B
Total Debt	0.00	4.38B	5.96B	5.06B	4.38B	1.73B
Total Liabilities	-18.92B	8.41B	8.93B	8.61B	8.90B	5.01B
Stockholders Equity	18.92B	18.91B	16.80B	14.89B	13.67B	11.53B
Cash Flow
Free Cash Flow	0.00	3.57B	-2.58B	-2.37B	1.87B	393.74M
Operating Cash Flow	0.00	3.82B	3.02B	-1.26B	3.62B	553.93M
Investing Cash Flow	0.00	-1.35B	-2.83B	1.53B	-4.74B	-2.19B
Financing Cash Flow	0.00	-2.52B	-96.75M	-390.48M	1.23B	1.60B

Kalyani Steels Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 745.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KSL, the sentiment is Negative. The current price of 745.5 is above the 20-day moving average (MA) of 736.07, above the 50-day MA of 726.77, and below the 200-day MA of 802.15, indicating a bearish trend. The MACD of -7.39 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 15.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KSL.

Kalyani Steels Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	76 Outperform	₹30.60B	13.58	―	1.36%	-0.46%	4.85%
VSSL	75 Outperform	₹23.24B	20.43	―	1.03%	-1.47%	-15.20%
PPL	66 Neutral	₹4.85B	14.29	―	1.39%	4.38%	-45.96%
SUNFLAG	62 Neutral	₹41.04B	20.39	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
STEELXIND	54 Neutral	₹10.00B	131.21	―	―	5.31%	30.14%
MUKANDLTD	50 Neutral	₹17.85B	47.87	―	1.50%	-5.63%	-34.36%

Kalyani Steels Ltd Corporate Events

Kalyani Steels to Acquire 8.64% Stake in Renewable Energy SPV for Captive Power

Kalyani Steels Ltd has entered into share subscription and shareholders’ agreements to acquire an 8.64% equity stake in Clean Renewable Energy KK 1A Pvt Ltd, a special purpose vehicle of Hero Rooftop Energy Pvt Ltd that is engaged in electricity generation but has yet to report operating turnover. The cash investment of Rs 5.19 crore, which is not a related-party transaction, is aimed at sourcing captive renewable power for Kalyani Steels under India’s group captive scheme, a move that is expected to support the company’s energy security, reduce power costs over time and advance its transition toward cleaner energy in line with regulatory frameworks under the Electricity Act, 2003.