Sharescart Research Club logo

Kataria Industries Overview

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.

Want to Start Investing in Top Unlisted Stocks?

Our experts help you choose the right stocks based on performance, risk, and growth potential.

Kataria Industries Key Financials

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

Kataria Industries Share Price

| |

Volume
Price

Kataria Industries Quarterly Price

Show Value Show %

Kataria Industries Peer Comparison

Kataria Industries Quarterly Results

#(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

Kataria Industries Profit & Loss

#(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

Growth Rates

# 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%

Kataria Industries Balance Sheet

#(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

Kataria Industries Cash Flow

#(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

Kataria Industries Ratios

# 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

Kataria Industries Shareholding Pattern

# 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

Kataria Industries News

Kataria Industries Pros & Cons

Pros

  • Company has delivered good profit growth of 40% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 21%
  • Company has reduced debt.
  • Company is almost debt free.

Cons

  • Though the company is reporting repeated profits, it is not paying out dividend.
  • Debtor days have increased from 4.4 to 5.52days.
whatsapp