The quarter's results reveal a company in operational limbo. Net sales, which stood at ₹3.00 crores in Mar'25 and ₹1.62 crores in Dec'24, have now completely evaporated. This marks the second consecutive quarter of zero revenue in Q2 FY26, mirroring the pattern seen in Sep'24 and Jun'24. The company's trading and distribution activities appear to have ground to a complete halt, raising fundamental questions about business continuity.
Despite the absence of any trading revenue, Kisaan Parivar managed to report a net profit of ₹0.53 crores in Q2 FY26, unchanged from Q1 FY26's ₹0.51 crores but down 27.40% from Sep'24's ₹0.73 crores. This profit is entirely attributable to other income of ₹1.90 crores in Q2 FY26, which more than offset the operating loss of ₹1.16 crores. The company's ability to generate profits without any core business revenue underscores the unsustainable nature of current operations.
| Quarter | Net Sales (₹ Cr) | Operating Profit (₹ Cr) | Other Income (₹ Cr) | Net Profit (₹ Cr) | PAT Margin (%) |
|---|---|---|---|---|---|
| Sep'25 | 0.00 | -1.16 | 1.90 | 0.53 | 0.0% |
| Jun'25 | 0.00 | -0.94 | 1.65 | 0.51 | 0.0% |
| Mar'25 | 3.00 | 0.96 | 0.03 | 0.85 | 28.33% |
| Dec'24 | 1.62 | 0.71 | 0.00 | 0.53 | 32.72% |
| Sep'24 | 0.00 | -1.42 | 2.40 | 0.73 | 0.0% |
| Jun'24 | 1.62 | 0.71 | 0.00 | 0.53 | 32.72% |
| Mar'24 | 3.00 | 0.96 | 0.03 | 0.85 | 28.33% |
Financial Performance: A Business Without Operations
The financial performance in Q2 FY26 paints a stark picture of operational distress. With net sales at zero, the company recorded an operating loss (excluding other income) of ₹1.16 crores, slightly worse than Q1 FY26's loss of ₹0.94 crores. Employee costs remained minimal at ₹0.02 crores, suggesting a skeleton crew. The operating profit margin, when calculable, has historically ranged between 32.0% and 43.83% in quarters with actual sales, but these metrics are now irrelevant given the absence of revenue.
Other income has emerged as the company's sole lifeline. In Q2 FY26, other income of ₹1.90 crores represented the entirety of the company's earnings base, up from ₹1.65 crores in Q1 FY26. This income source, likely comprising interest income or asset monetisation, is masking the fundamental reality that Kisaan Parivar is not currently operating as a trading business. The profit before tax of ₹0.74 crores in Q2 FY26, marginally higher than Q1 FY26's ₹0.72 crores, reflects this dependence on non-operating income.
Tax expenses remained consistent at ₹0.21 crores in both Q2 and Q1 FY26, with an effective tax rate of 28.38% in Q2 FY26 compared to 29.17% in Q1 FY26. The resulting net profit of ₹0.53 crores in Q2 FY26 shows a marginal sequential improvement of 3.92% but represents a 27.40% year-on-year decline from Sep'24's ₹0.73 crores. On a half-yearly basis (H1 FY26), the company posted a combined net profit of ₹1.04 crores on zero sales, entirely supported by other income of ₹3.55 crores.
Critical Operating Concern
Zero Revenue Alert: Kisaan Parivar has reported zero net sales for the second consecutive quarter in FY26 and the fourth time in the last seven quarters. This pattern suggests a fundamental breakdown in trading operations rather than temporary disruption. With operating losses of ₹1.16 crores in Q2 FY26 and the business entirely dependent on other income, the company's viability as a going concern is in serious question.
Balance Sheet Quality: Cash-Rich but Operationally Hollow
The balance sheet as of Mar'25 reveals a company with adequate financial resources but no operational deployment. Shareholder funds stood at ₹6.74 crores, comprising share capital of ₹4.40 crores and reserves of ₹2.34 crores. The company is entirely debt-free, with zero long-term borrowings and minimal current liabilities of ₹0.69 crores, primarily comprising other current liabilities of ₹0.69 crores with no trade payables.
Current assets of ₹7.43 crores as of Mar'25, up from ₹5.10 crores in Mar'24, suggest cash accumulation in the absence of trading activity. With fixed assets at zero and no investments on the books, the entire asset base comprises current assets, likely dominated by cash and bank balances. This asset composition reinforces the view that Kisaan Parivar has effectively ceased trading operations and is sitting on a pool of liquid resources without any clear deployment strategy.
Return on equity (ROE) presents a misleading picture. The latest ROE of 31.11% appears strong on the surface, driven by the ₹1.00 crore net profit in FY25 against shareholder funds of approximately ₹6.74 crores. However, this profitability is entirely non-operating in nature. The average ROE of 12.97% over the longer term reflects the company's historical performance when it was actually engaged in trading. The current ROCE of -5.60% more accurately captures the operational reality, as it factors in the operating losses being incurred.
The Revenue Disappearance: Understanding the Pattern
A detailed examination of quarterly revenue trends reveals a deeply troubling pattern. In FY25, the company reported total sales of ₹6.00 crores, split between Mar'25 (₹3.00 crores) and Dec'24 (₹1.62 crores), with zero sales in Sep'24 and Jun'24. In FY24, sales were concentrated in Mar'24 (₹3.00 crores) and Jun'24 (₹1.62 crores). This lumpy, inconsistent revenue pattern suggests that Kisaan Parivar's trading operations are sporadic at best, lacking the continuity expected of a sustainable business.
The complete absence of sales in Q1 and Q2 FY26 extends this concerning trend. Unlike seasonal businesses with predictable cycles, the company's revenue appears and disappears without any discernible pattern. The 100% year-on-year revenue decline in both Q1 and Q2 FY26 represents not a cyclical downturn but a potential permanent cessation of trading activities. Management has provided no public commentary on plans to revive operations or the reasons behind the revenue collapse.
| Metric | Q2 FY26 | Q1 FY26 | QoQ Change | Sep'24 | YoY Change |
|---|---|---|---|---|---|
| Net Sales | ₹0.00 Cr | ₹0.00 Cr | Flat | ₹0.00 Cr | Flat |
| Operating Profit | -₹1.16 Cr | -₹0.94 Cr | ▼ 23.40% | -₹1.42 Cr | ▲ 18.31% |
| Other Income | ₹1.90 Cr | ₹1.65 Cr | ▲ 15.15% | ₹2.40 Cr | ▼ 20.83% |
| Net Profit | ₹0.53 Cr | ₹0.51 Cr | ▲ 3.92% | ₹0.73 Cr | ▼ 27.40% |
Peer Comparison: Underperformance Across All Metrics
When compared to peers in the Trading & Distributors sector, Kisaan Parivar's operational challenges become even more apparent. The company's ROE of 12.97% (average basis) appears reasonable compared to sector peers like Dalmia Industria (0.31%), Palm Jewels (3.02%), and Tai Industries (11.00%), but this metric is distorted by the non-operating nature of recent profits. More tellingly, Kisaan Parivar's price-to-book ratio of 2.04x is significantly higher than most peers, suggesting the market is pricing in expectations that are not reflected in current operations.
The company's P/E ratio of 6.56x appears attractive compared to the sector average of approximately 64x and peers like Dalmia Industria (190.33x) and Tai Industries (27.29x). However, this low multiple reflects market scepticism about earnings sustainability. With profits entirely dependent on other income and zero operating revenue, the P/E ratio provides little insight into business quality. The market capitalisation of ₹16.00 crores positions Kisaan Parivar as the fourth-smallest in its peer group, reflecting its micro-cap status and limited institutional interest.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Market Cap |
|---|---|---|---|---|---|
| Kisaan Parivar | 6.56 | 2.04 | 12.97% | -0.01 | ₹16 Cr |
| Dalmia Industria | 190.33 | 0.91 | 0.31% | -0.01 | — |
| Palm Jewels | 30.29 | 1.14 | 3.02% | 0.14 | — |
| Suncare Traders | 7.64 | 0.43 | 0.0% | 0.14 | — |
| Tai Industries | 27.29 | 0.59 | 11.00% | -0.22 | — |
| Fruition Venture | NA (Loss Making) | 3.17 | 5.50% | 0.28 | — |
Valuation Analysis: Value Trap Despite Low Multiples
The current valuation of Kisaan Parivar presents a classic value trap scenario. Trading at ₹18.04 with a P/E ratio of 6.56x and P/BV ratio of 2.04x, the stock appears statistically cheap. The company's valuation grade has fluctuated wildly, currently sitting at "Very Attractive" after multiple grade changes in early 2025. However, these mechanical valuation metrics fail to capture the fundamental deterioration in business operations.
With a book value per share of ₹7.66, the current price of ₹18.04 represents a 135% premium to book value. This premium is difficult to justify for a company with zero revenue, operating losses, and no clear path to operational revival. The negative EV/EBITDA of -15.78x reflects the company's net cash position but also highlights the absence of meaningful operating earnings. The EV/Sales ratio of 3.41x is meaningless when sales themselves are zero.
The stock's 52-week range of ₹17.66 to ₹56.00 tells a story of dramatic value destruction. Currently trading just 2.15% above the 52-week low and 67.79% below the 52-week high, the stock has lost investor confidence. The PEG ratio of 0.33x appears attractive mechanically, but the underlying 5-year sales growth of 40.53% is based on a low base and does not reflect current operational reality. Any fair value estimate must contend with the fundamental question: what is a non-operating company worth?
"A company trading at attractive multiples with zero revenue is not a value opportunity – it's a red flag signalling operational distress and uncertain business continuity."
Shareholding Pattern: Stable but Uninspiring
The shareholding pattern has remained completely static over the past five quarters, with promoter holding steady at 59.25% and non-institutional investors holding the remaining 40.75%. There has been zero change in promoter holding, FII holding (0.00%), mutual fund holding (0.00%), insurance holdings (0.00%), or other DII holdings (0.00%). This stability reflects not confidence but rather a complete absence of institutional interest in the stock.
The lack of any institutional participation – no FIIs, no mutual funds, no insurance companies – is a significant red flag. Institutional investors typically conduct rigorous due diligence and their absence suggests concerns about business viability, corporate governance, or growth prospects. The promoter holding of 59.25%, while providing control, has shown no signs of increasing despite the stock's sharp decline, suggesting limited conviction in deploying additional capital.
| Quarter | Promoter % | FII % | MF % | Insurance % | Non-Inst % |
|---|---|---|---|---|---|
| Dec'25 | 59.25% | 0.00% | 0.00% | 0.00% | 40.75% |
| Sep'25 | 59.25% | 0.00% | 0.00% | 0.00% | 40.75% |
| Jun'25 | 59.25% | 0.00% | 0.00% | 0.00% | 40.75% |
| Mar'25 | 59.25% | 0.00% | 0.00% | 0.00% | 40.75% |
| Dec'24 | 59.25% | 0.00% | 0.00% | 0.00% | 40.75% |
Stock Performance: Severe Underperformance Across All Timeframes
The stock's price performance has been catastrophic across nearly all timeframes. Over the past year, Kisaan Parivar has declined 66.59% whilst the Sensex gained 7.18%, resulting in a negative alpha of 73.77 percentage points. The underperformance versus the Trading & Distributors sector has been even more dramatic, with the sector returning 75.57% whilst Kisaan Parivar fell 66.59% – a performance gap of 142.16 percentage points.
Short-term performance has been equally dismal. The stock has declined 3.84% over one week, 12.21% over one month, 23.88% over three months, and 30.62% over six months, consistently underperforming the Sensex across all these periods. Year-to-date, the stock is down 9.71% compared to the Sensex's 3.46% decline. The stock is currently trading below all key moving averages – 5-day MA (₹18.22), 20-day MA (₹20.73), 50-day MA (₹22.04), 100-day MA (₹23.45), and 200-day MA (₹26.13) – a technical configuration that signals sustained downward momentum.
The longer-term picture shows some historical strength, with 3-year returns of 232.84% and 5-year returns of 331.58%, both significantly outperforming the Sensex. However, these returns are largely historical artefacts from a period when the company was operationally active. The risk-adjusted return of -1.22 over the past year, combined with volatility of 54.78%, places the stock firmly in the "HIGH RISK LOW RETURN" category. With a beta of 1.50, the stock is 50% more volatile than the market, amplifying downside moves.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -3.84% | +0.90% | -4.74% |
| 1 Month | -12.21% | -2.84% | -9.37% |
| 3 Month | -23.88% | -2.53% | -21.35% |
| 6 Month | -30.62% | +0.97% | -31.59% |
| YTD | -9.71% | -3.46% | -6.25% |
| 1 Year | -66.59% | +7.18% | -73.77% |
| 3 Years | +232.84% | +38.27% | +194.57% |
| 5 Years | +331.58% | +77.74% | +253.84% |
Technical Analysis: Deeply Bearish Across All Indicators
The technical picture for Kisaan Parivar is uniformly negative. The overall technical trend is classified as "BEARISH" as of January 14, 2026, when the trend changed from "Mildly Bearish" at ₹19.79. Multiple technical indicators are flashing warning signals: MACD is bearish on both weekly and monthly timeframes, Bollinger Bands show bearish signals on both timeframes, moving averages are bearish, and KST (Know Sure Thing) indicators are bearish to mildly bearish.
The stock is trading near its 52-week low of ₹17.66, with immediate support at this level. Resistance levels are stacked significantly higher – immediate resistance at ₹20.73 (20-day MA), major resistance at ₹23.45 (100-day MA), strong resistance at ₹26.13 (200-day MA), and the 52-week high at ₹56.00 representing a distant ceiling. The technical setup suggests limited upside potential and significant downside risk in the near term.
Delivery volumes have shown some increase, with a 132.49% rise over the past month, but this likely reflects distress selling rather than accumulation. The recent delivery volume of 4,220 shares (69.88% of total volume) on January 29, 2026, is below the 5-day average of 5,800 shares, suggesting reduced investor interest. The bearish trend that began in early September 2025 has shown no signs of reversal, with the stock consistently making lower highs and lower lows.
Investment Thesis: Multiple Red Flags Outweigh Any Positives
The investment thesis for Kisaan Parivar is overwhelmingly negative. The company's proprietary Mojo Score stands at just 12 out of 100, with an advisory rating of "STRONG SELL." This score reflects a confluence of negative factors: bearish technical trend, flat financial performance, weak long-term fundamental strength due to operating losses, and severe underperformance versus the market over the past year.
The quality assessment grades the company as "BELOW AVERAGE," noting that it is a "below average quality company based on long term financial performance." Key quality concerns include weak average ROCE of 0.04%, weak average EBIT to interest coverage of -0.13x, and weak average ROE of 12.97%. Whilst the company benefits from zero debt and no promoter pledging, these positives are overshadowed by the fundamental absence of operating revenue.
The financial trend is classified as "FLAT" as of December 2025, with the most recent quarter (Sep'25) showing the lowest EPS of negative ₹0.14. The valuation, whilst mechanically appearing "VERY ATTRACTIVE," represents a value trap given the operational challenges. The technical trend remains firmly "BEARISH," completing a picture of a company facing challenges across all key investment parameters.
Key Strengths & Risk Factors
Key Strengths ✓
- Zero Debt Position: Company maintains a completely debt-free balance sheet with net cash, eliminating solvency concerns in the near term.
- No Promoter Pledging: Promoters have not pledged any shares, suggesting no immediate financial stress at the ownership level.
- Positive Cash Generation: Despite operating losses, the company continues to generate other income, providing a temporary earnings cushion.
- Stable Shareholding: Promoter holding remains steady at 59.25%, providing management continuity and control.
- Low Valuation Multiples: P/E of 6.56x and P/BV of 2.04x appear statistically cheap, though sustainability is questionable.
Key Concerns ⚠
- Zero Revenue Operations: Complete absence of net sales for two consecutive quarters signals potential business discontinuation.
- Operating Losses: Negative operating profit of ₹1.16 crores in Q2 FY26 indicates the company is burning cash on operations.
- Unsustainable Profit Model: Entire profitability dependent on other income (₹1.90 crores in Q2 FY26) rather than core business operations.
- Severe Stock Underperformance: 66.59% decline over one year with negative alpha of 73.77% versus Sensex demonstrates loss of investor confidence.
- Zero Institutional Interest: Complete absence of FII, mutual fund, and insurance holdings signals professional investor avoidance.
- Bearish Technical Trend: Trading below all key moving averages with uniformly bearish technical indicators across timeframes.
- Weak Quality Grade: Below average quality assessment based on long-term financial performance and operating metrics.
Outlook: What to Watch
Positive Catalysts
- Revenue Revival: Any resumption of trading operations with positive sales would be a significant positive signal.
- Management Communication: Clear articulation of business strategy and operational revival plans could restore some confidence.
- Asset Monetisation: Transparent deployment of cash reserves into income-generating assets or business opportunities.
- Cost Rationalisation: Further reduction in operating losses through expense management.
Red Flags to Monitor
- Continued Zero Revenue: Another quarter of zero sales in Q3 FY26 would confirm operational cessation.
- Declining Other Income: Reduction in other income would eliminate the only current earnings source.
- Promoter Stake Reduction: Any decrease in promoter holding would signal loss of confidence at the ownership level.
- Regulatory Actions: Any scrutiny from stock exchanges or regulatory bodies regarding business operations.
- Further Technical Breakdown: Break below 52-week low of ₹17.66 would trigger additional selling pressure.
The Verdict: Exit Recommended for All Investors
Score: 12/100
For Fresh Investors: Avoid completely. The company has reported zero revenue for two consecutive quarters with no clear path to operational revival. Whilst the balance sheet shows adequate cash, the absence of core business operations makes this an unacceptable investment at any valuation. The 66.59% one-year decline reflects fundamental deterioration, not temporary cyclical weakness.
For Existing Holders: Exit at current levels despite the loss. The company is not operating as a trading business, and profitability is entirely dependent on unsustainable other income. With no institutional interest, bearish technicals, and a below-average quality grade, the risk of further value erosion is substantial. The low P/E of 6.56x is a value trap, not an opportunity.
Fair Value Estimate: Not determinable given absence of operating revenue. Current price of ₹18.04 may represent downside to book value of ₹7.66 if operations do not resume.
Rationale: The confluence of zero revenue, operating losses, severe market underperformance, and complete absence of institutional interest creates an investment case with overwhelming downside risk and minimal upside potential. Until the company demonstrates operational revival with sustainable revenue generation, it remains uninvestable.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. The author and publisher assume no responsibility for investment decisions made based on this analysis.
