Kalyani Steels Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kalyani Steels Ltd trades at ₹874, in a confirmed uptrend and 9 weeks into that stage. That is +8.4% against its own 200-day average. It sits at 75% of a 52-week range of ₹613 to ₹959. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 5 straight weeks.

Today the stock is in a confirmed uptrend — week 9 of stage 2, confirmed. At ₹874 it trades +8.4% versus its 200-day average and sits at 75% of its 52-week range (₹613–₹959).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +461% while the NIFTY 500 moved +276% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 5 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kalyani Steels Ltd trades at 14.5× P/E, at the pricey end of its own range (89th percentile). Its long-run median P/E is 9.2×, measured across 10.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 14.5× is at the pricey end of its own range (89th percentile), against a long-run median of 9.2× measured over 10.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +0.6% against a +1.3% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +14.4%/yr price move, ~+6.6%/yr came from earnings growth and ~+7.8 pp from the multiple (expanding); over 10y, of the +13.6%/yr price move, ~+8.8%/yr came from earnings growth and ~+4.8 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kalyani Steels Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 11 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

52.3/100 — rank 8 of 17 in Steel Products · 96% evidence confidence

Kalyani Steels Ltd scores 52.3 out of 100 against the 17 companies it is compared with in Steel Products, ranking 8. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 12.4 + 17.4 + 12.2 + 10.3 = 52.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kalyani Steels Ltd reported ₹484 Cr of revenue in the Mar 26 quarter, −11.0% year on year. Over 17 years it has compounded at 3.7% a year. The last full year, FY26, came in at ₹1,846 Cr. The last four reported quarters add to ₹1,845 Cr.

FY26 revenue came in at ₹1,846 Cr (−6.9% on the year), capping 17 years at 3.7% compound. The latest quarter (Mar 26) printed ₹484 Cr, −11.0% year on year.

Pace check: the last four quarters averaged −6.7% growth against the decade's 3.7% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −6.9% over the last 4 quarters against +4.0%/yr over the last 8 — rolling over; TTM profit +1.6% vs +2.2%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kalyani Steels Ltd's operating margin is 20.0% in the Mar 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.1% to 23.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 20.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 1.1%–23.0%.

🚨 Why the margin moved: operating margin went −0.6 pp year on year while gross margin went +4.2 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kalyani Steels Ltd earned ₹72.0 Cr of net profit in the Mar 26 quarter, −10.0% year on year. Full-year FY26 profit was ₹258 Cr. The 17-year compound rate is 27.8%. That is 14.9% of the quarter's revenue. The same quarter a year earlier earned ₹80.0 Cr.

Mar 26 profit was ₹72.0 Cr, −10.0% year on year. On the full year, FY26 printed ₹258 Cr (+0.8%), and the 17-year compound rate is 27.8%.

🚨 Why profit moved: revenue contributed −11.0% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +3.5% vs revenue −6.7%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 111% of Kalyani Steels Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹141 Cr of operating cash against ₹258 Cr of profit. After ₹137 Cr of capital spending, ₹4.0 Cr was left as free cash.

FY26: operating cash of ₹141 Cr against reported profit of ₹258 Cr, leaving free cash of ₹4.0 Cr after ₹137 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 111% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 111%: the cash cycle stretched 143 days between FY20 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 2.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kalyani Steels Ltd's cash conversion cycle runs 104 days in FY26, up from −39 days in FY20. Capital spending ran ₹357 Cr over the last 3 years. At FY26 sales of ₹1,846 Cr each day of that cycle holds about ₹5.1 Cr, so roughly ₹526 Cr sits inside the business at any moment.

FY26: debtors at 98 days, inventory at 102 days — roughly 3.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 104 days, looser than FY20's −39.

The full loop: cash goes out to suppliers and production on day 0; stock waits 102 days to sell; customers pay about 98 days after that; and suppliers themselves are paid at 96 days — netting out to the 104-day cycle.

In money terms: at FY26 sales of ₹1,846 Cr, each day of the cycle holds about ₹5.1 Cr — so the 104-day loop keeps roughly ₹526 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹357 Cr over the last 3 fiscal years against ₹166 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹560 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kalyani Steels Ltd earns a ROCE of 15% in FY26. That is up from a trough of 4% in FY09. Return on invested capital clears the cost of that capital by +0.5 percentage points, so growth here adds value rather than only size. The wiring behind it is 14.0% net margin on 0.62× asset turns.

FY26 ROCE is 15%, recovered from a FY09 trough of 4% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 14.0% net margin × 0.62× asset turns × 1.42× balance-sheet leverage ≈ 12.3% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 12.5% − 12.0% = a +0.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Kalyani Steels Ltd carries total debt of ₹475 Cr against shareholder equity of ₹2,105 Cr as of Mar 26, a debt-to-equity of 0.23 — effectively unlevered. On the annual view that ratio went from 0.25 in FY22 to 0.23 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹475 Cr against shareholder equity of ₹2,105 Cr — a debt-to-equity of 0.23. On the annual view, debt-to-equity went from 0.25 (FY22) to 0.23 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Kalyani Steels Ltd moved a full percentage point over the last two years — the register is quiet. Domestic institutions moved −0.5 points over the same window, to 11.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −0.7 points over 8 quarters to 1.8%; Domestic institutions: −0.5 points over 8 quarters to 11.5%; Promoters: +0.0 points over 8 quarters to 64.7%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kalyani Steels Ltd: the Z-score reads 4.62. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 4.62 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 4.62.

Frequently asked questions