Everest Kanto Cylinder Financial Trend Shifts Amidst Quarterly Performance

In the quarter ending September 2025, Everest Kanto Cylinder reported net sales at ₹360.38 crore, marking the lowest quarterly figure in recent periods. This contrasts with the company’s prior quarterly averages and signals a contraction in revenue generation. The profit after tax (PAT) for the same quarter stood at ₹21.04 crore, showing a decline of 27.4% compared to the average of the previous four quarters. Similarly, profit before tax excluding other income (PBT less OI) was recorded at ₹27.54 crore, down by 18.3% relative to the preceding four-quarter average.

Operating cash flow for the year registered at a negative ₹17.61 crore, the lowest in recent history, indicating cash utilisation challenges. Meanwhile, interest expenses for the nine-month period rose by 24.79% to ₹11.88 crore, reflecting increased financial costs. The company’s debt-equity ratio at half-year stood at 0.15 times, the highest recorded in recent periods, suggesting a modest rise in leverage.

On the positive side, certain operational metrics remain favourable. The dividend payout ratio (DPR) for the year is at 14.74%, the highest in recent times, reflecting a consistent shareholder return policy. Inventory turnover ratio for the half-year period is at 3.27 times, indicating efficient inventory management relative to peers. Additionally, the dividend per share (DPS) for the year is ₹0.70, also the highest recorded recently.

From a market perspective, Everest Kanto Cylinder’s stock price closed at ₹131.20, down 0.91% on the day, with a 52-week high of ₹231.50 and a low of ₹97.00. The stock’s short-term returns have lagged behind the Sensex benchmark, with a one-week return of -6.22% compared to Sensex’s 0.96%, and a one-month return of -6.32% versus Sensex’s 0.86%. Year-to-date and one-year returns also show a divergence, with Everest Kanto Cylinder at -29.10% and -31.91% respectively, while Sensex posted positive returns of 8.36% and 9.48% over the same periods.

However, over longer horizons, the stock has outperformed the Sensex, with a three-year return of 40.25% compared to Sensex’s 37.31%, a five-year return of 267.51% against Sensex’s 91.65%, and a remarkable ten-year return of 1498.05% versus Sensex’s 232.28%. This historical outperformance highlights the company’s capacity for long-term value creation despite recent headwinds.

Everest Kanto Cylinder’s recent adjustment in its financial trend evaluation, reflected in a shift from positive to negative, underscores the challenges faced in the latest quarter. The decline in key profitability and cash flow metrics contrasts with operational strengths such as dividend policy and inventory turnover. Investors may consider these mixed signals in the context of the company’s long-term performance and sector dynamics within industrial manufacturing.

As the company navigates these financial fluctuations, monitoring subsequent quarterly results and broader market conditions will be essential for a comprehensive understanding of its evolving position. The current market cap grade of 3 and the recent adjustment in evaluation parameters highlight the need for cautious analysis amid ongoing sectoral and economic factors.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →