Is Kalpat. overvalued or undervalued?

As of August 29, 2025, Kalpat. is considered overvalued with a PE ratio of 361.92 and an EV to EBITDA of 297.87, significantly higher than its peers like DLF and Lodha Developers, and its recent stock performance has underperformed compared to the Sensex.

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.<BR><BR>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.

Are Kalpat. latest results good or bad?

Kalpataru's latest Q2 FY26 results show a return to profitability with a net profit of ₹5.44 crore and a significant increase in net sales. However, concerns remain due to a low profit margin of 0.62% and operational inefficiencies, indicating challenges in sustainable profitability.

Kalpataru's latest results for Q2 FY26 present a mixed picture. On one hand, the company returned to profitability with a consolidated net profit of ₹5.44 crore, a significant improvement from the ₹49.42 crore loss in the previous quarter. Additionally, net sales surged to ₹793.77 crore, reflecting a robust 79.10% quarter-on-quarter increase and a 56.79% year-on-year growth.<BR><BR>However, despite these positive sales figures, the company's profitability remains concerning. The profit after tax (PAT) margin is just 0.62%, indicating razor-thin profitability. This is compounded by a low return on equity of 0.87%, suggesting that the company is not generating meaningful returns for its shareholders. Furthermore, the operating margin, excluding other income, stands at only 0.84%, highlighting significant operational inefficiencies.<BR><BR>Overall, while the revenue growth is impressive, the underlying profitability challenges and weak capital efficiency raise red flags about the company's financial health. Therefore, the results can be seen as good in terms of revenue growth but bad in terms of sustainable profitability and operational performance.

How has been the historical performance of Kalpat.?

Kalpat's historical performance shows significant improvement in FY 2025, with net sales rising to 2,225.21 Cr from 1,929.98 Cr, and a turnaround in profitability, achieving a profit after tax of 25.99 Cr compared to a loss of 107.68 Cr in FY 2024. Total assets increased to 16,211.51 Cr, reflecting a strong recovery and growth trajectory.

Answer:<BR>The historical performance of Kalpat shows significant improvement in the fiscal year ending March 2025 compared to March 2024.<BR><BR>Breakdown:<BR>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.

Should I buy, sell or hold Kalpat.?

Which are the latest news on Kalpat.?

Why is Kalpat. falling/rising?

As of 21-Dec, Kalpataru Ltd's stock price is rising to 345.00, reflecting a 4.48% increase due to a trend reversal, positive market sentiment, and increased institutional investment. Despite this rise, the stock remains below its key moving averages, indicating potential underlying weaknesses.

As of 21-Dec, Kalpataru Ltd's stock price is rising, currently at 345.00, which reflects a change of 14.8 or 4.48% increase. This upward movement can be attributed to several factors. Firstly, the stock has shown a trend reversal, gaining after three consecutive days of decline. Additionally, it opened with a gap up of 2.21% today, indicating positive market sentiment at the start of trading.<BR><BR>Moreover, the stock has outperformed its sector by 2.73%, suggesting that it is gaining traction relative to its peers. The intraday high reached today was Rs 345, confirming the stock's strong performance within the trading session. However, it is important to note that despite this rise, Kalpataru Ltd is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which may indicate underlying weaknesses.<BR><BR>Another positive factor contributing to the stock's rise is the increasing participation by institutional investors, who have raised their stake by 0.55% over the previous quarter, now holding 14.47% of the company. This suggests a level of confidence from more sophisticated investors, who typically have better resources for analyzing company fundamentals.<BR><BR>In summary, the combination of a trend reversal, positive opening, sector outperformance, and increased institutional investment are key reasons for the rise in Kalpataru Ltd's stock price as of 21-Dec.

Why is Kalpat. falling/rising?

As of 22-Dec, Kalpataru Ltd's stock price is at 335.05, unchanged from the previous session, with a 5.31% decline over the past week and 6.21% over the past month. The stock is trading below all key moving averages and is close to its 52-week low, indicating bearish sentiment and concerns about the company's financial health due to high debt and weak profitability.

As of 22-Dec, Kalpataru Ltd's stock price is currently at 335.05, showing no change from the previous trading session. The stock has experienced a decline of 5.31% over the past week and 6.21% over the past month, indicating a downward trend. Additionally, it is trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which typically suggests a bearish sentiment among investors.<BR><BR>The stock is also close to its 52-week low, being only 2.54% away from the low of Rs 326.55. Furthermore, there has been a significant drop in investor participation, with delivery volume falling by 61% compared to the 5-day average. This decline in trading activity can be a sign of waning interest from retail investors.<BR><BR>While there has been an increase in participation from institutional investors, who have raised their stake by 0.55% in the last quarter, the overall financial health of the company raises concerns. Kalpataru Ltd has a high debt-to-equity ratio of 6.84 times, indicating significant leverage, and a low return on equity of 0.44%, which reflects weak profitability. The company's flat results in the latest quarter, where non-operating income constituted a large portion of profit before tax, further contribute to the perception of instability.<BR><BR>In summary, the combination of declining stock performance, reduced investor participation, high debt levels, and weak long-term fundamentals are contributing to the stock's current downward trajectory.

Why is Kalpataru Ltd falling/rising?

As of 23-Dec, Kalpataru Ltd's stock price is at 335.30, reflecting a decline of 1.6 or 0.47%. The stock has consistently underperformed, nearing its 52-week low, and shows a bearish trend with declining investor participation and high debt levels impacting its fundamentals.

As of 23-Dec, Kalpataru Ltd's stock price is falling, currently at 335.30, which represents a decrease of 1.6 or 0.47%. The stock has underperformed compared to the benchmark Sensex, which has risen by 1.00% over the past week, while Kalpataru Ltd has seen a decline of 3.88%. Over the past month, the stock has dropped by 6.14%, indicating a consistent downward trend.<BR><BR>The stock is also close to its 52-week low, being only 2.61% away from the low of Rs 326.55. Today's performance shows that it has underperformed its sector by 0.55%. Additionally, the stock has experienced a trend reversal, falling after two consecutive days of gains. It is trading lower than all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which suggests a bearish trend.<BR><BR>Investor participation is declining, as evidenced by a significant drop in delivery volume, which fell by 91.45% compared to the 5-day average. Although there has been an increase in institutional investor participation, with a 0.55% rise in their stake, the overall sentiment remains negative due to the company's high debt levels and weak long-term fundamentals. The debt-to-equity ratio is notably high at 6.84 times, and the return on equity is low at 0.44%, indicating low profitability. These factors contribute to the stock's current decline.

Why is Kalpataru Ltd falling/rising?

As of 24-Dec, Kalpataru Ltd's stock price is at 331.00, reflecting a decline of 1.08%. The stock has significantly underperformed against the Sensex, is near its 52-week low, and shows bearish trends with decreased investor participation and high debt levels.

As of 24-Dec, Kalpataru Ltd's stock price is falling, currently at 331.00, which reflects a decrease of 3.6 or 1.08%. The stock has underperformed significantly compared to the benchmark Sensex, which has increased by 1.00% over the past week, while Kalpataru Ltd has declined by 1.36%. Over the past month, the stock has experienced a notable drop of 9.27%, contrasting with the Sensex's modest gain of 0.60%.<BR><BR>The stock is currently close to its 52-week low, being only 1.34% away from the low of Rs 326.55. It has been on a downward trend, having fallen consecutively for the last two days, resulting in a total decline of 1.75% during this period. Additionally, Kalpataru Ltd is trading below its moving averages across various time frames, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend.<BR><BR>Investor participation has also decreased, with delivery volume on December 23 dropping by 73.48% compared to the 5-day average, suggesting a lack of interest from retail investors. Although there has been an increase in institutional investor participation, with a 0.55% rise in their stake, the overall sentiment remains negative due to the company's high debt levels, reflected in a debt-to-equity ratio of 6.84 times, and weak long-term fundamental strength, as indicated by a low return on equity of 0.44%.<BR><BR>These factors collectively contribute to the stock's decline, as investors may be wary of the company's financial health and performance outlook.

Why is Kalpataru Ltd falling/rising?

As of 25-Dec, Kalpataru Ltd's stock price is Rs 331.00, reflecting a 1.08% decline and significant underperformance compared to the Sensex. The stock is near its 52-week low, has seen a 9.27% drop over the past month, and faces negative sentiment due to high debt levels and weak fundamentals.

As of 25-Dec, Kalpataru Ltd's stock price is falling, currently at Rs 331.00, which reflects a decrease of Rs 3.6 or 1.08%. The stock has underperformed compared to the benchmark Sensex, which has risen by 1.00% over the past week, while Kalpataru Ltd has declined by 1.36%. Over the past month, the stock has seen a significant drop of 9.27%, contrasting with the Sensex's modest gain of 0.60%.<BR><BR>Today's performance indicates that the stock is close to its 52-week low, being only 1.34% away from Rs 326.55. Additionally, it has been on a downward trend, having lost 1.75% over the last two days. The stock is trading below its moving averages across various time frames, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which typically signals weakness in price momentum.<BR><BR>Investor participation has also decreased, with delivery volume dropping by 73.48% compared to the 5-day average, indicating a lack of interest from retail investors. Although there has been a slight increase in institutional investor participation, with a 0.55% rise in stake, the overall sentiment remains negative due to the company's high debt levels and weak long-term fundamentals. The debt-to-equity ratio stands at a concerning 6.84 times, and the return on equity is only 0.44%, suggesting low profitability.<BR><BR>Overall, the combination of poor stock performance relative to the market, declining investor interest, and fundamental weaknesses contributes to the ongoing decline in Kalpataru Ltd's stock price.