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✕NegativeTier 1

Krishna Defence & Allied Industries LtdNSE:KRISHNADEF

Defence · ₹1,498 Cr market cap · covered for 1 quarter since Q4 2026

Current view Q4 2026

Makes navy steel India once imported - a real engine that grew sales fivefold. But orders in hand have shrunk to under half a year's sales, clouding near-term growth.

Latest exchange filings last 5 · 5 after Q4 2026

Exchange filings, with the company's own one-line summary, read off the same page as the figures. Screener publishes only the most recent few, so this is the last 5 — not everything filed since your note, and a quiet-looking list is not proof of a quiet quarter. A filing is marked new when it is dated after the end of the quarter your note covers. Not scored, and not a judgement — a routine repayment notice and a takeover sit in the same list.

AI concall report · Q4 2026

The full earnings-call read behind this view — what management promised, what they delivered, and the earning trigger.

✨ Read the report ↗

Growth Q4 2026

Metric This year vs lastYoY · vs Q4 2025 vs the quarter beforeQoQ, sequential · vs Q3 2026 3-year yearly average3Y CAGR · compounded 5-year yearly average5Y CAGR · compounded
Sales▲ +41.3%+1.6%+56.4%+47.6%
Operating profit▲ +60.0%+14.3%+77.6%+56.6%
EPS▲ +62.8%+26.6%+81.5%+40.8%
PAT▲ +85.7%+30.0%——

Tinted rows drive the Tier. Tier = the weaker of YoY Sales and YoY PAT growth. Here the weaker is Sales at +41.3%, which is ≥ 20% → Tier 1.

QoQ is sequential, not a trend. For most Indian companies the March quarter is seasonally the largest, so a June-quarter fall against it is a calendar effect. Only the YoY column feeds the Tier.

Multibagger potential Good65/100

⚠ Your own view on this company is Negative. Read the note above first — this score reads the figures, and it has not read the concall.

Cheap, and growing fast. Profit per share grew 60% a year, while the price-tag on its earnings actually got smaller. That gap — real growth nobody has paid up for — is exactly what this score looks for.

It could double even as the price-tag on its earnings shrinks

₹996 → ₹1,992 needs the P/E at 17× — it is 36× today, and has ranged 12× to 149× over the last 5 years. The rest would come from earnings growing as they have.

If this keeps up for 3 more years ×6.1 +510% — profit growing 60% a year, and buyers paying 53× for it again

What you pay for its profitlog scale · 5-year range

12×5-year low 17×to double 26×to triple 36×today 53×usual level 149×5-year high

Tripling needs 26× — inside its 5-year range, under the 53× median.

The Treadmillearnings climbing while the price-tag on them has not — no re-rating yet⚠ falling knife
Is it cheap right now?P/E 36× is 0.67× its own 5-year average of 53× — well below it; forward PEG 0.37 — very cheap for its growth 23/25
Has the market paid for this growth yet?ΔMultiple ×0.95 a year (×0.86 over 3 years) — slight de-rate 10/15
Is the growth real, or flattered?mostly sales-backed; QoQ holding 24/30
What does it earn on its own money?earns 21% on its own book — good 8/10
Is the price trend agreeing?below all three EMAs — falling knife 0/20
Price vs its book value 7.7×P/B — ₹130 of book value per share
Price vs next year’s profit 22×forward P/E — what an entry pays now
Price over the last year ×1.52earnings ×1.60, price-tag ×0.95
At what price this changes
Good from ₹306 to ₹1,046 · now ₹996
above ₹1,056 → Strong

At ₹1,483 the price-tag on its earnings reaches the 53× it is being projected toward — the point where being cheap against that yardstick is used up.

De-rating while below every EMA — value-trap risk, not a coiled spring.

How this is calculated

This is arithmetic, not a forecast — Return = ΔEPS × ΔMultiple. It says what would have to be true, not how likely it is, and "earnings keep growing at this rate for three more years" is the assumption doing the most work. This is a small-cap at ₹1,498 cr, so the odds of a re-rate are not fighting its own size.

Growth rate used: 60.0% — the weakest of EPS / Sales / Op-profit from 3-year EPS CAGR, capped at 60%. Latest quarter reads 60%.

How it compares with its rivals Defence · 6 of 33 listed

These are the industry's largest names rather than companies of its own size, so the columns are worth reading straight across — a ranking against them would only be restating the size gap.

Company PriceP/ESizeROCE Profitlast qtr Saleslast qtr
Krishna Defence ₹1,013 35.0× ₹1,514 Cr 30.7% +20.7% −15.2%
Hind.Aeronautics ₹4,863 34.8× ₹3.25 L Cr 32.0% +14.9% +14.4%
Bharat Electron ₹398 47.4× ₹2.91 L Cr 36.4% +8.7% +24.9%
Bharat Dynamics ₹1,176 82.8× ₹43,099 Cr 13.9% +547.4% +130.8%
Garden Reach Sh. ₹2,390 34.2× ₹27,377 Cr 42.8% +43.8% +38.5%
Data Pattern ₹4,550 94.3× ₹25,473 Cr 21.9% −13.5% +16.8%

Screener's own peer group, from the request already made for the industry P/E. It serves the industry's largest names by market cap, not companies of a similar size, so treat this as context rather than a like-for-like table; this company is always shown. On a phone the price, size and sales columns are dropped rather than pushed off the edge. Not part of the score.

Business quality to Jun 2026

Are the margins widening? yes — widening, and steadily operating margin 11% → 26% over 18 months
Did the profit turn into cash? under half — much of the profit is tied up 189% last year, 59% over three · free cash flow ₹66 cr, positive in 1 of 4 years
Is the growth borrowed? essentially debt-free ₹2 cr — 0.01× its own equity (was 0.08×)
Is it being collected? customers are taking longer to pay 52 days to collect, up 16 in a year · cash cycle 80 days
Who has been buying? the promoters have held steady promoters 59.9% (−0.1 in a year), 73.4% → 59.9% over 3.8 years · FIIs 1.4% (+1.3) · DIIs 1.3% (+1.3) · shareholders 536 → 18,720
What does it earn on its capital? earns a high return on the capital it employs ROCE 30.7% · ROE 25.4%

Fetched from the filings, not typed — and deliberately not part of the score. These are the questions the score cannot ask: it reads growth, price and trend, so a company can score well while its profit never becomes cash. Weigh these beside the note, not against the number.

Screener's own checklist not mine, not the score

In its favour

  • Company has reduced debt.
  • Company is almost debt free.
  • Company's working capital requirements have reduced from 110 days to 53.4 days

Against it

  • Stock is trading at 7.81 times its book value
  • Promoter holding has decreased over last 3 years: -13.5%

Generated by screener.in from a fixed checklist — not written by me and not an input to the score. It is here as a second machine opinion to weigh against the note; where it disagrees with the view above, the note is the considered one.