Krishna Defence & Allied Industries Ltd
Incorporated in 1996, Krishna Defence and Allied Industries Limited develop, manufactures, and designs Defence Application Products, Kitchen, and Dairy Equipment Products and has two manufacturing plants located in Gujarat, Kalol, and Halol district near Vadodara.[1]
- Market Cap ₹ 544 Cr.
- Current Price ₹ 443
- High / Low ₹ 486 / 154
- Stock P/E 86.5
- Book Value ₹ 41.6
- Dividend Yield 0.00 %
- ROCE 15.6 %
- ROE 17.4 %
- Face Value ₹ 10.0
Pros
- Company has reduced debt.
Cons
- Stock is trading at 10.6 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding has decreased over last quarter: -12.1%
- Company has a low return on equity of 14.0% over last 3 years.
- Company might be capitalizing the interest cost
- Company has high debtors of 155 days.
* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.
Peer comparison
Sector: Aerospace & Defence Industry: Diversified - Medium / Small
Half Yearly Results
Figures in Rs. Crores
Profit & Loss
Figures in Rs. Crores
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
|---|---|---|---|---|---|---|
| 58.10 | 24.80 | 34.95 | 49.52 | 63.34 | 79.33 | |
| 52.40 | 20.91 | 30.34 | 42.63 | 54.32 | 69.00 | |
| Operating Profit | 5.70 | 3.89 | 4.61 | 6.89 | 9.02 | 10.33 |
| OPM % | 9.81% | 15.69% | 13.19% | 13.91% | 14.24% | 13.02% |
| 0.53 | 0.73 | 1.30 | 0.42 | 0.95 | 0.81 | |
| Interest | 2.06 | 2.09 | 1.88 | 2.12 | 1.27 | 1.22 |
| Depreciation | 1.29 | 1.39 | 1.40 | 1.68 | 1.97 | 2.00 |
| Profit before tax | 2.88 | 1.14 | 2.63 | 3.51 | 6.73 | 7.92 |
| Tax % | 28.47% | 34.21% | 29.66% | 30.20% | 21.40% | |
| 2.06 | 0.75 | 1.86 | 2.46 | 5.30 | 6.29 | |
| EPS in Rs | 4.90 | 1.79 | 4.43 | 2.93 | 4.63 | 5.34 |
| Dividend Payout % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Compounded Sales Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | 37% |
| TTM: | 63% |
| Compounded Profit Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | 92% |
| TTM: | 118% |
| Stock Price CAGR | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | % |
| 1 Year: | 173% |
| Return on Equity | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | 14% |
| Last Year: | 17% |
Balance Sheet
Figures in Rs. Crores
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Sep 2023 | |
|---|---|---|---|---|---|---|
| Equity Capital | 4.20 | 4.20 | 4.20 | 8.40 | 11.45 | 12.29 |
| Reserves | 11.15 | 11.89 | 14.09 | 15.72 | 25.22 | 38.85 |
| 27.35 | 25.68 | 25.57 | 23.09 | 18.52 | 14.35 | |
| 23.29 | 19.64 | 12.45 | 20.60 | 29.50 | 11.76 | |
| Total Liabilities | 65.99 | 61.41 | 56.31 | 67.81 | 84.69 | 77.25 |
| 10.04 | 10.38 | 9.96 | 13.60 | 12.34 | 14.78 | |
| CWIP | 0.46 | 1.61 | 3.39 | 0.00 | 2.06 | 0.00 |
| Investments | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| 55.48 | 49.41 | 42.95 | 54.20 | 70.28 | 62.46 | |
| Total Assets | 65.99 | 61.41 | 56.31 | 67.81 | 84.69 | 77.25 |
Cash Flows
Figures in Rs. Crores
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| 2.96 | 7.34 | 1.90 | 3.95 | -7.30 | |
| -8.01 | -4.09 | -0.21 | -3.54 | 1.43 | |
| 4.83 | -3.13 | -1.67 | -0.55 | 5.87 | |
| Net Cash Flow | -0.23 | 0.12 | 0.02 | -0.14 | 0.01 |
Ratios
Figures in Rs. Crores
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| Debtor Days | 198.58 | 179.26 | 137.96 | 161.20 | 154.90 |
| Inventory Days | 105.96 | 1,194.81 | 342.79 | 270.86 | 313.06 |
| Days Payable | 161.75 | 622.07 | 150.98 | 241.38 | 248.47 |
| Cash Conversion Cycle | 142.79 | 752.00 | 329.77 | 190.68 | 219.49 |
| Working Capital Days | 136.58 | 254.03 | 198.64 | 136.51 | 192.18 |
| ROCE % | 7.65% | 10.53% | 12.36% | 15.62% |
Diversified Business Offerings[1] Krishna Defence and Allied Industries Ltd. (KDAIL) is engaged in manufacturing defense application products, dairy equipment products, and kitchen equipment. It has entered into various licensing agreements with the Defence Research and Development Organization ("DRDO") to obtain the know-how and rights that enable it to manufacture and supply specialized defense application products for the Indian Armed Forces.
Business segments:
A) Defense segment[2] KDAIL provides a wide array of high-performance products for naval applications and other utilities such as shipbuilding steel bulb bar, special steel alloy bricks used as ballast weight for critical applications, superalloys weld consumables like welding wire, flux, and electrodes, food container and improved space heating device, which is also known as Bukhari.