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The KCP Limited (KCP) Fair Value & Analysis

Basic Materials · IN · Market cap ₹21.4B

TK The KCP Limited KCP · BSE
Price₹164.95
Fair Value₹240.58
Upside+45.9%
Quality48/100

Strengths

Trades 46% below our fair value of ₹240.58

Risks

!Expensive Growth
!Thin margins · 7.7% net margin
!Low debt · negative free cash flow
!Moderate moat 47/100
Expensive Growth
Thin margins · 7.7% net margin
Low debt · negative free cash flow
0.33% dividend yield
Moderate moat 47/100
Evidence: Medium Range ₹168.40 – ₹312.75 Share as image

Fair value as of: Aug 21, 2026

From 15 valuation models · updated today

Share price −1.8% over the past month.

Below-average quality, screening 46% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹168.40). The market is more pessimistic than our downside scenario.
  • Solid quality (48/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹168.40 to ₹312.75) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹267.76 ₹83.36 Fair Value ₹240.58 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹83.36 – ₹267.76 · fair‑value band ₹168.40 – ₹312.75 · the ₹164.95 price screens below the ₹240.58 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

The KCP Limited (KCP) currently trades at ₹164.95, while our model-based Fair Value estimate is ₹240.58, implying the stock looks roughly 45.9% undervalued today. The Quality Score stands at 48/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, The KCP Limited generated revenue of ₹25.8B at a net margin of 7.7%. Revenue grew 7.7% year over year. It earns a return on equity of 13.1%. Net debt stands at ₹6.4B. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹168.40 (bear case) to ₹312.75 (bull case); at ₹164.95, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 33% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at 46%, KCP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹124.95 ₹143.14 ₹258.52 76
ROIC Compounder ₹132.21 ₹170.08 ₹222.92 72
Growth-Adj P/E ₹168.40 ₹240.58 ₹312.75 68
All 15 models by family
DCF Models
Owner Earnings ₹0.0200 31
Earnings-Based
Graham-Dodd ₹103.96 ₹340.23 ₹454.70 54
Lynch FV ₹76.30 ₹109.01 ₹141.71 50
PEG = 1.0 ₹76.30 ₹109.01 ₹141.71 46
EPV ₹132.21 ₹157.71 ₹180.02 59
Multiples
P/E Multiple ₹194.93 ₹259.90 ₹324.88 63
P/S Multiple ₹194.93 ₹259.90 ₹324.88 58
P/B Multiple ₹194.93 ₹259.90 ₹324.88 55
EV/EBIT ₹190.88 ₹261.43 ₹331.98 53
EV/EBITDA ₹179.91 ₹246.81 ₹313.71 54
EV/Revenue ₹162.66 ₹241.27 ₹319.89 43
Asset-Based
NCAV (Graham) ₹69.11 ₹92.61 ₹138.23 50
Economic Profit
Residual Income ₹124.95 ₹143.14 ₹258.52 76
ROIC Compounder ₹132.21 ₹170.08 ₹222.92 72
Growth Earnings
Growth-Adj P/E ₹168.40 ₹240.58 ₹312.75 68

Widest divergence: Multiples (₹259.90) versus Asset-Based (₹92.61). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹25.8B
Revenue growth (YoY) +7.7%
Net margin 7.7%
Return on equity 13.1%
Free cash flow −₹665M FY2026
P/E ratio 12.5
More key figures
Operating margin 14.3%
EPS (TTM) ₹13.24
Dividend yield 0.3%
EPS growth (YoY) +126%
Net debt ₹6.4B FY2026

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 47 · Market factors (momentum, volatility) 45

Profitability 51
Margins and returns on capital today
Quality Growth 30
Are margins and returns improving?
Cashflow 20
Earnings quality: real cash, not paper profit
Fin. Strength 61
Balance sheet, leverage, solvency risk
Investment 43
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

The KCP Limited engages in the cement, heavy engineering, power generation, and hospitality businesses in India and Vietnam. It operates through Cement Unit, Heavy Engineering Unit, Hotel, and Sugar segments.

Full company description

The KCP Limited engages in the cement, heavy engineering, power generation, and hospitality businesses in India and Vietnam. It operates through Cement Unit, Heavy Engineering Unit, Hotel, and Sugar segments. The company manufactures and sells cement; generates power from various sources, including thermal, hydel, solar, wind, and waste heat recovery; and a range of heavy equipment for various sectors, such as cement, sugar, power, mining, mineral processing, metals, oil and gas, chemicals and fertilizers, industrial gases, space and defense, and general engineering sectors. In addition, it manufactures sugar under the VARELLA brand; and operates Mercure Hyderabad KCP hotel. The KCP Limited was incorporated in 1941 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

The KCP Limited reported revenue of ₹25.6B in FY2026 versus ₹21.1B in FY2022, a compound +5.0%/yr. Reported net income was ₹2.0B in FY2026, compounding +1.2%/yr from FY2022.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹25.6B
Latest YoY
+1.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.4%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.6%
Revenue +5.0%/yr
FY22 ₹21.1B
FY23 ₹22.5B
FY24 ₹28.5B
FY25 ₹25.3B
FY26 ₹25.6B
Net income +1.2%/yr
FY22 ₹1.9B
FY23 ₹417M
FY24 ₹1.9B
FY25 ₹1.5B
FY26 ₹2.0B

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Cite: Fair Value Calculator (2026). "The KCP Limited Fair Value". https://www.fairvalue-calculator.com/stock/KCP.BSE

Peer Group

Building Materials · 258 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside −2% · Above median
Return on equity (TTM) 13% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Building Materials median · lower = cheaper

P/E (TTM) 12.5× · Cheaper than median
P/B 1.20× · Pricier than median
P/S (TTM) 0.83× · Pricier than median
EV/EBITDA 7.0× · Pricier than median

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
UltraTech Cement Limited ULTRACEMCO ₹11,891 ₹4,718 -60%
China Jushi Co 600176 ¥40.56 ¥13.22 -67%
Grasim Industries Limited GRASIM ₹3,293 ₹1,245 -62%
CEMEX, S.A. CEMEXCPO 21.71 MXN 12.27 MXN -43%
Ambuja Cements Limited AMBUJACEM ₹421.00 ₹216.73 -49%
Shree Cement Limited SHREECEM ₹25,570 ₹8,215 -68%
TCC Group 1101B 43.15 TWD 9.76 TWD -77%
Taiwan Glass Ind. Corp 1802 57.60 TWD 13.98 TWD -76%
J.K. Cement Limited JKCEMENT ₹5,349 ₹2,184 -59%
Dalmia Bharat Limited DALBHARAT ₹1,842 ₹1,032 -44%

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Frequently asked questions

Is The KCP Limited (KCP) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹240.58 versus a price of ₹164.95, about +46% (undervalued).
What is the fair value of KCP?
Our model-based fair value for The KCP Limited is ₹240.58 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹164.95.
What is the quality score of KCP?
The KCP Limited has a Quality Score of 48/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of The KCP Limited (KCP)?
The KCP Limited reported trailing-twelve-month revenue of about ₹25.8B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of KCP?
The net profit margin of The KCP Limited is about 7.7%, meaning it keeps roughly 7.7% of revenue as net income. Based on the latest reported figures.
Does The KCP Limited pay a dividend?
The KCP Limited currently shows a dividend yield of about 0.33% relative to its recent price (as of Aug 21, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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