Analysis of Karamtara Engineering's KYC (Know Your Company) rating ahead of management interview, covering financials, valuation and outlook after its recent IPO listing

Sat 10 Oct 2026

Order book

6000 crore rupees

Last year revenue

4300 crore rupees

FY27 revenue growth guidance

60 to 65 percent

Net profit

229 crore rupees

Net profit two years ago

103 crore rupees

Heard on business television between 11:35:32 - 11:38:32 IST.

• Order book stood around 6,000 crore rupees, with last year's revenue at 4,300 crore rupees; company guided for 60-65% revenue growth in FY27 with H2 weighted.
• Net profit doubled to 229 crore rupees from 103 crore rupees; margins fell 200 basis points in Q1 but revenue grew 72%, prompting a thumbs up despite margin concerns.
• Borrowings rose from 509 crore to 1,030 crore rupees, net debt to EBITDA at about 1.5x; book value around 1,200 crore rupees; cash flow from operations jumped 5-6x while net cash flow rose only 2x due to higher investments.
• ROE around 20% and ROCE 23-24% earned a thumbs up; promoter stake reduced to 82-83% post IPO, needs to reach 75% eventually.
• Stock listed with a 26% bump from issue price of 254 rupees to 320, then rose another 13% to near 400 rupees; trading at 49 times P/E, seen as elevated, earning a valuation thumbs down; overall rating 6 out of 8 parameters.

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