WEBSITE BSE:0 NSE: Inc. Year: 2004 Industry: Engineering My Bucket: Add Stock
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1. Business Overview
Kataria Industries Ltd. is an Indian engineering company primarily engaged in the manufacturing of steel products. Its core business involves producing Mild Steel (MS) ERW Black & Galvanized Pipes, MS Hollow Sections, HR (Hot Rolled) Sheets & Plates, and CR (Cold Rolled) Sheets & Coils. The company operates in a business-to-business (B2B) model, supplying these products to various sectors including infrastructure, construction, oil & gas, industrial, and agricultural industries. It generates revenue by manufacturing and selling these value-added steel products.
2. Key Segments / Revenue Mix
The company's revenue is primarily derived from its manufacturing operations across its product lines. While specific revenue breakdowns by product category are not readily available in the public domain, its offerings can be broadly categorized as:
Pipes & Tubes: MS ERW Black & Galvanized Pipes, Hollow Sections.
Sheets & Plates: HR Sheets & Plates, CR Sheets & Coils.
These products cater to a diverse range of end-use applications, but all fall under the broader steel product manufacturing umbrella.
3. Industry & Positioning
Kataria Industries operates within India's highly competitive Engineering and Steel Products industry. The industry is characterized by the presence of large integrated steel producers (like Tata Steel, JSW Steel, SAIL) and numerous smaller to medium-sized players specializing in downstream products like pipes, sections, and sheets. Kataria Industries appears to be positioned as a regional manufacturer, likely serving specific customer segments or geographical areas with its range of standard and customized steel products. Competition is largely driven by price, product quality, delivery timelines, and efficiency in raw material procurement.
4. Competitive Advantage (Moat)
For a company of its size in a commodity-like industry, a strong, durable competitive advantage (moat) is generally challenging to establish. Kataria Industries' potential advantages may lie in:
Operational Efficiency: Efficient manufacturing processes and cost management could lead to competitive pricing.
Customer Relationships: Long-standing relationships with key industrial and infrastructure clients could provide repeat business.
Regional Presence: A strong presence and distribution network within its operating region (e.g., Punjab and surrounding areas) might offer logistical advantages over more distant competitors.
However, the company likely faces challenges in creating a significant moat due to the largely commoditized nature of its products, intense price competition, and relatively low switching costs for standard items.
5. Growth Drivers
Key factors that can drive growth for Kataria Industries over the next 3-5 years include:
Infrastructure Development: Government focus and spending on infrastructure projects (roads, railways, smart cities, industrial corridors) in India will directly boost demand for steel pipes, structural steel, and sheets.
Construction & Housing: Growth in residential and commercial construction activities, driven by urbanization and economic development, will increase the need for its products.
Industrial Expansion: Growth in manufacturing and core industries in India will drive demand for steel as a critical input material.
Agricultural Sector Demand: Continued modernization and investment in agricultural infrastructure (e.g., irrigation) can also contribute to demand for pipes.
6. Risks
Raw Material Price Volatility: Fluctuations in the prices of primary steel (HR Coils, etc.) directly impact the company's cost of production and profitability.
Intense Competition: The presence of numerous domestic and international players, including larger integrated steel companies, leads to significant price pressure and competition for market share.
Economic Slowdown: A downturn in the Indian economy, particularly affecting the construction, infrastructure, or industrial sectors, would reduce demand for the company's products.
Regulatory Changes: Changes in government policies related to steel imports, tariffs, environmental regulations, or industrial licensing could impact operations and costs.
Interest Rate Fluctuations: If the company relies on debt financing, rising interest rates could increase borrowing costs and affect profitability.
7. Management & Ownership
Kataria Industries Ltd. appears to be a promoter-led company, typical of many Indian small and mid-cap enterprises. As per available public information, the promoter group holds a significant stake, which indicates a strong vested interest in the company's performance and long-term vision. The day-to-day management is likely overseen by the promoter family or professionals appointed by them.
8. Outlook
Kataria Industries Ltd. operates in a sector poised to benefit from India's overarching growth themes, particularly infrastructure development, industrialization, and urbanization. The company's established presence in manufacturing various steel products caters directly to these critical sectors, providing a foundation for potential demand growth. However, the outlook is tempered by the inherent challenges of the steel products industry, including its susceptibility to raw material price volatility and intense competition from larger, often more integrated players. Maintaining operational efficiency, managing costs effectively, and potentially expanding its product portfolio or regional reach will be crucial for the company to capitalize on sector tailwinds and navigate competitive pressures.
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Market Cap ₹221 Cr.
Stock P/E 20.2
P/B 2
Current Price ₹102.7
Book Value ₹ 50.7
Face Value 10
52W High ₹129
Dividend Yield 0%
52W Low ₹ 85.5
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 87 | 133 | 86 | 170 | 177 | 133 | 159 | 250 | 332 | 339 | 351 | |
| Other Income | 1 | 1 | 0 | 1 | 1 | 1 | 3 | 1 | 2 | 2 | 1 | |
| Total Income | 89 | 134 | 87 | 171 | 179 | 134 | 161 | 250 | 334 | 341 | 352 | |
| Total Expenditure | 82 | 125 | 81 | 162 | 170 | 124 | 143 | 229 | 312 | 312 | 330 | |
| Operating Profit | 6 | 9 | 6 | 9 | 8 | 10 | 18 | 22 | 22 | 29 | 22 | |
| Interest | 5 | 4 | 4 | 5 | 6 | 5 | 7 | 8 | 10 | 9 | 3 | |
| Depreciation | 1 | 1 | 1 | 2 | 3 | 2 | 5 | 4 | 4 | 6 | 5 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 3 | -0 | -0 | 0 | 0 | 0 | 0 | |
| Profit Before Tax | 0 | 4 | 2 | 2 | 3 | 3 | 7 | 11 | 8 | 15 | 13 | |
| Provision for Tax | 0 | 1 | 1 | -0 | 1 | 1 | 2 | 3 | 1 | 4 | 2 | |
| Profit After Tax | 0 | 4 | 1 | 3 | 2 | 2 | 5 | 7 | 8 | 10 | 11 | |
| Adjustments | 0 | -2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | 0 | 2 | 1 | 3 | 2 | 2 | 5 | 7 | 8 | 10 | 11 | |
| Adjusted Earnings Per Share | 0 | 2.5 | 0.6 | 1.6 | 1.3 | 1.2 | 3.2 | 4.7 | 4.9 | 6.6 | 5.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 4% | 12% | 21% | 15% |
| Operating Profit CAGR | -24% | 0% | 17% | 14% |
| PAT CAGR | 10% | 16% | 41% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -7% | NA% | NA% | NA% |
| ROE Average | 14% | 21% | 24% | 22% |
| ROCE Average | 14% | 15% | 15% | 15% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 5 | 8 | 9 | 12 | 14 | 16 | 21 | 28 | 36 | 45 | 109 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 3 | 3 | 4 | 8 | 12 | 19 | 32 | 32 | 5 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 1 | 0 | 0 | 0 | 1 | 2 | 1 | 3 | 3 |
| Total Current Liabilities | 43 | 34 | 16 | 69 | 54 | 65 | 67 | 65 | 81 | 66 | 32 |
| Total Liabilities | 49 | 46 | 29 | 85 | 76 | 94 | 108 | 128 | 151 | 120 | 143 |
| Fixed Assets | 7 | 6 | 6 | 11 | 11 | 29 | 28 | 25 | 32 | 41 | 42 |
| Other Non-Current Assets | 0 | 0 | 0 | 0 | 13 | 1 | 1 | 11 | 6 | 2 | 4 |
| Total Current Assets | 42 | 40 | 23 | 74 | 51 | 63 | 79 | 92 | 112 | 77 | 97 |
| Total Assets | 49 | 46 | 29 | 85 | 76 | 94 | 108 | 128 | 151 | 120 | 143 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 2 | 2 | 3 | 2 | 5 | 4 | 3 | 3 | 3 | 1 | 0 |
| Cash Flow from Operating Activities | 12 | 4 | 4 | 12 | 17 | 8 | 2 | 6 | 2 | 62 | 7 |
| Cash Flow from Investing Activities | 0 | 0 | -1 | -6 | -16 | -8 | -2 | -10 | -6 | -10 | -10 |
| Cash Flow from Financing Activities | -12 | -3 | -3 | -4 | -2 | -1 | -1 | 4 | 6 | -52 | 4 |
| Net Cash Inflow / Outflow | 0 | 1 | -1 | 3 | -1 | -0 | -0 | 0 | 2 | -1 | 0 |
| Closing Cash & Cash Equivalent | 2 | 3 | 2 | 5 | 4 | 3 | 3 | 3 | 5 | 0 | 0 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0 | 2.45 | 0.6 | 1.59 | 1.26 | 1.19 | 3.16 | 4.66 | 4.91 | 6.58 | 5.09 |
| CEPS(Rs) | 0.72 | 2.98 | 1.15 | 2.73 | 2.91 | 2.37 | 6.06 | 6.93 | 7.43 | 10.15 | 7.59 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 3.95 | 5.23 | 5.84 | 7.43 | 8.69 | 9.88 | 13.05 | 17.71 | 22.62 | 28.6 | 50.67 |
| Core EBITDA Margin(%) | 5.33 | 5.39 | 5.75 | 4.99 | 4.01 | 6.96 | 9.83 | 8.44 | 6.03 | 7.87 | 5.79 |
| EBIT Margin(%) | 5.78 | 5.37 | 5.35 | 4.44 | 4.62 | 6.08 | 8.57 | 7.34 | 5.45 | 6.9 | 4.65 |
| Pre Tax Margin(%) | 0.3 | 3.01 | 1.59 | 1.3 | 1.42 | 2.15 | 4.14 | 4.27 | 2.5 | 4.29 | 3.79 |
| PAT Margin (%) | 0 | 2.61 | 0.99 | 1.48 | 1.12 | 1.42 | 3.15 | 2.96 | 2.34 | 3.07 | 3.12 |
| Cash Profit Margin (%) | 1.01 | 3.17 | 1.89 | 2.54 | 2.6 | 2.82 | 6.06 | 4.4 | 3.55 | 4.74 | 4.66 |
| ROA(%) | 0.01 | 8.19 | 2.54 | 4.43 | 2.49 | 2.22 | 4.96 | 6.26 | 5.59 | 7.71 | 8.33 |
| ROE(%) | 0.05 | 57.18 | 10.88 | 24.01 | 15.63 | 12.81 | 27.56 | 30.3 | 24.34 | 25.69 | 14.19 |
| ROCE(%) | 11.56 | 21.84 | 16.3 | 14.3 | 11.13 | 10.26 | 14.38 | 16.7 | 13.8 | 18.61 | 13.88 |
| Receivable days | 102.37 | 56.02 | 52.66 | 68.73 | 85.86 | 91.99 | 100.45 | 67.23 | 54.17 | 50.94 | 37.27 |
| Inventory Days | 33.23 | 14.81 | 27.2 | 15.12 | 20.6 | 34.05 | 37.98 | 39.26 | 39.06 | 28.1 | 25.04 |
| Payable days | 30.35 | 23.65 | 17.53 | 5.67 | 11.61 | 11.13 | 8.95 | 6.77 | 4.11 | 4.4 | 5.52 |
| PER(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17.92 |
| Price/Book(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.8 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.36 | 0.2 | 0.21 | 0.38 | 0.31 | 0.55 | 0.5 | 0.37 | 0.31 | 0.22 | 0.61 |
| EV/Core EBITDA(x) | 4.89 | 3.1 | 3 | 6.91 | 6.52 | 7.27 | 4.36 | 4.16 | 4.73 | 2.58 | 9.8 |
| Net Sales Growth(%) | -56.78 | 52.89 | -35.26 | 97.21 | 4.17 | -24.98 | 19.19 | 57.33 | 32.93 | 2.2 | 3.39 |
| EBIT Growth(%) | 15.1 | 45.35 | -35.38 | 46.37 | 8.57 | -1.29 | 67.84 | 34.81 | -1.26 | 29.32 | -30.4 |
| PAT Growth(%) | 100.1 | 0 | -75.44 | 164.41 | -20.91 | -5.6 | 165.73 | 47.5 | 5.35 | 34.02 | 5.09 |
| EPS Growth(%) | 100.18 | 0 | -75.44 | 164.41 | -20.91 | -5.6 | 165.73 | 47.5 | 5.35 | 34.02 | -22.65 |
| Debt/Equity(x) | 5.96 | 3.38 | 1.92 | 5.68 | 4 | 4.69 | 3.84 | 3.26 | 2.98 | 1.4 | 0.16 |
| Current Ratio(x) | 0.96 | 1.16 | 1.4 | 1.08 | 0.95 | 0.97 | 1.18 | 1.41 | 1.38 | 1.16 | 3.07 |
| Quick Ratio(x) | 0.87 | 0.92 | 1.02 | 0.96 | 0.73 | 0.77 | 0.88 | 0.9 | 0.92 | 0.94 | 2.01 |
| Interest Cover(x) | 1.05 | 2.28 | 1.42 | 1.42 | 1.44 | 1.55 | 1.94 | 2.39 | 1.84 | 2.64 | 5.45 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.09 |
| # | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|
| Promoter | 73.61 | 74.98 | 74.98 | 74.98 |
| FII | 5.98 | 4.01 | 0.05 | 0 |
| DII | 0 | 0 | 0 | 0 |
| Public | 20.41 | 21.01 | 24.97 | 25.02 |
| Others | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 |
| # | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|
| Promoter | 1.58 | 1.61 | 1.61 | 1.61 |
| FII | 0.13 | 0.09 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 |
| Public | 0.44 | 0.45 | 0.54 | 0.54 |
| Others | 0 | 0 | 0 | 0 |
| Total | 2.15 | 2.15 | 2.15 | 2.15 |
* The pros and cons are machine generated.
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