Kalpataru Limited

What to Watch

• LeverageBalance sheet leverage is elevated with Debt/Equity at 2.25×.
• RevenueRevenue contracted at a -1.8% CAGR over the 3-year period (FY23–FY26 (FY23 base from pre-listing restated prospectus financials)). Watch for revenue stabilization in upcoming quarters.
• MarginsOperating margin is thin at 2.2%, leaving limited buffer against input cost volatility. Watch gross margin and cost lines in the next results.
• ValuationThe shares trade at 83× trailing earnings; the multiple assumes sustained high growth and is sensitive to any slowdown.