Question 1

Is Kalpat. overvalued or undervalued?

Accepted Answer

As of 29 August 2025, the valuation grade for Kalpat. has moved from does not qualify to expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 361.92, an EV to EBITDA ratio of 297.87, and a ROE of just 0.87%. These figures suggest that the stock is priced excessively compared to its earnings and book value.In comparison to its peers, Kalpat.'s valuation metrics are notably higher; for instance, DLF has a PE ratio of 38.29 and an EV to EBITDA of 81.41, while Lodha Developers shows a PE of 40.42 and an EV to EBITDA of 29.51. Given these comparisons, Kalpat. appears to be significantly overvalued in the current market environment. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -3.11% compared to the Sensex's -1.84%, reinforcing the notion of overvaluation.

Question 2

How has been the historical performance of Kalpat.?

Accepted Answer

Answer:The historical performance of Kalpat shows significant improvement in the fiscal year ending March 2025 compared to March 2024.Breakdown:In the fiscal year ending March 2025, Kalpat reported net sales of 2,225.21 Cr, an increase from 1,929.98 Cr in the previous year. Total operating income also rose to 2,225.21 Cr from 1,929.98 Cr. The total expenditure, excluding depreciation, increased to 2,163.85 Cr from 2,058.40 Cr, while employee costs rose to 136.62 Cr from 127.95 Cr, and manufacturing expenses increased to 1,758.39 Cr from 1,717.49 Cr. Operating profit (PBDIT) turned positive at 167.74 Cr compared to a loss of 18.47 Cr in the prior year. Profit before tax improved to 77.17 Cr from a loss of 85.35 Cr, leading to a profit after tax of 25.99 Cr, a significant recovery from a loss of 107.68 Cr. The consolidated net profit for March 2025 was 21.62 Cr, compared to a loss of 94.98 Cr in March 2024. Earnings per share also improved to 1.29 from -6.8. On the balance sheet, total assets increased to 16,211.51 Cr from 13,700.19 Cr, while total liabilities rose to 16,211.51 Cr from 13,700.19 Cr. Cash flow from operating activities improved to 488.00 Cr from 376.00 Cr, although the net cash outflow was -190.00 Cr compared to -55.00 Cr in the previous year. Overall, Kalpat's financial performance in March 2025 reflects a strong recovery and growth trajectory.

Question 3

Are Kalpataru Ltd latest results good or bad?

Accepted Answer

Kalpataru Ltd's latest results for Q3 FY26 indicate a significantly poor performance. The company reported a consolidated net loss of ₹62.78 crores, which marks a staggering decline of 1,254% quarter-on-quarter. Net sales also fell sharply by 36.39% to ₹504.92 crores, reflecting serious operational challenges and a potential decline in project execution.The operating margin turned negative at -14.78%, the lowest in eight quarters, and the return on equity stands at just 0.44%, which is well below the industry average. This suggests that the company is struggling with capital efficiency and value creation. Additionally, the high debt-to-equity ratio of 3.81 times raises concerns about financial stability, particularly given the negative interest coverage ratio of -5.03 times.Overall, the results highlight a critical deterioration in financial health, raising significant concerns about the sustainability of Kalpataru's business model. Investors may want to approach this company with caution given the current financial metrics and operational challenges.

Question 4

Should I buy, sell or hold Kalpataru Ltd?

Accepted Answer

Based on the current financial situation of Kalpataru Ltd, it would be advisable to consider a strong sell position. The company is burdened with high debt, reflected in a debt-to-equity ratio of 6.84 times, which indicates significant financial risk. Additionally, the return on equity is quite low at 0.44%, suggesting that the company is not generating adequate profits relative to shareholders' funds.Recent quarterly results further reinforce this negative outlook, with a reported loss of Rs -55.08 crore, marking a drastic decline of -325.4% compared to the previous four-quarter average. Net sales have also decreased by -16.6%, and the operating profit to interest ratio is at its lowest, at -5.03 times.Furthermore, the return on capital employed (ROCE) is only 0.2, and the company's valuation appears expensive with an enterprise value to capital employed ratio of 1.2. Despite a 123% increase in profits over the past year, the stock has generated no returns, which raises concerns about its future performance.Considering these factors, holding or buying shares in Kalpataru Ltd may not be prudent at this time. It would be wise to reassess the situation and monitor any changes in the company's financial health before making any investment decisions.

Question 5

Why is Kalpataru Ltd falling/rising?

Accepted Answer

As of 02-Apr, Kalpataru Ltd's stock price is rising, currently at 288.00, which reflects an increase of 12.6 or 4.58%. This rise can be attributed to several factors. Firstly, the stock has outperformed its sector by 3.29% today and has shown consecutive gains over the last two days, accumulating a total return of 11.58% during this period. Additionally, the stock reached an intraday high of Rs 289.6, indicating positive momentum.However, it is important to note that despite the recent gains, the stock has experienced a decline over the longer term, with a year-to-date drop of 14.15%. The company is characterized by high debt, with a debt-to-equity ratio of 6.84 times, and has reported negative financial results, including a significant fall in profit after tax and net sales in the last quarter. This backdrop of weak long-term fundamentals and high debt may contribute to investor caution, as evidenced by a notable decrease in delivery volume, which fell by 65.68% against the five-day average.In summary, while Kalpataru Ltd is currently experiencing a rise in stock price due to short-term performance and positive sector comparison, the underlying financial challenges and declining investor participation suggest a complex outlook for the stock's future.

Kalpat.

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Is Kalpat. overvalued or undervalued?

How has been the historical performance of Kalpat.?

Are Kalpataru Ltd latest results good or bad?

Should I buy, sell or hold Kalpataru Ltd?

Why is Kalpataru Ltd falling/rising?

Which are the latest news on Kalpat.?

Compare Kalpat. with Similar Stocks

Dashboard

High Debt company with Weak Long Term Fundamental Strength

Negative results in Dec 25

With ROCE of 0.2, it has a Expensive valuation with a 1.2 Enterprise value to Capital Employed

Mojo Parameters

Stock DNA

Total Returns (Price + Dividend)

Risk Adjusted Returns v/s

Returns Beta

News

Kalpataru Ltd Surges 7.03% to Day's High of Rs 283 — Outperforms Realty Sector by 3.69 Percentage Points

Markets Rally, But Kalpataru Ltd Sinks to 52-Week Low in Stock-Specific Sell-Off

Kalpataru Ltd Valuation Shifts Signal Price Attractiveness Decline Amid Sector Challenges

Announcements

Corporate Actions

Quality key factors

Valuation key factors

Technicals key factors

Shareholding Snapshot : Dec 2025

Shareholding Compare (%holding)

Quarterly Results Snapshot (Standalone) - Dec'25 - QoQ

Half Yearly Results Snapshot (Standalone) - Sep'25

Nine Monthly Results Snapshot (Standalone) - Dec'25

Annual Results Snapshot (Standalone) - Mar'25

About Kalpataru Ltd

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