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Needs current assets and current liabilities.
KARAMTARA · Power Generation/Distribution · INE590T01012
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Karamtara Engineering Limited is an Indian integrated manufacturer specializing in structural components and hardware for the renewable energy and power transmission industries. The company offers a broad product portfolio comprising solar energy products (fixed-tilt Solar MMS, solar tracker piles, piers, and torque tubes), lattice towers for high-voltage transmission lines, angular and tubular wind turbine towers, fasteners, and overhead transmission line (OHTL) hardware fittings and accessories. Operating 13 manufacturing facilities (12 in India across Maharashtra and Gujarat, and 1 in Italy), the company possesses an aggregate annual installed capacity of 889,200 MTPA and 480,000 pieces as of March 31, 2026. Karamtara features deep backward integration, including in-house steel rolling mill furnaces and galvanizing facilities with 276,800 MTPA capacity. Serving international OEMs, EPCs, and IPPs across over 50 countries, export sales accounted for 40.52% of total operational revenue in Fiscal 2026 (generating ₹ 1,747.49 Crore / ₹ 17,474.92 million), while domestic sales contributed 58.46% (₹ 2,520.77 Crore / ₹ 25,207.65 million). Top 10 customers contributed 48.63% of operational revenue in Fiscal 2026.
Karamtara's competitive moat is established by its position as India's largest integrated manufacturer in terms of installed capacity for solar mounting structures and tracker components in Fiscal 2026, supported by extensive backward integration. Operating India's largest in-house galvanizing capacity in the solar sector (276,800 MTPA) and rolling mill furnaces, the company achieves reduced lead times, cost advantages, and stringent quality control. This is complemented by global delivery capabilities serving 16 of the top 24 EPC companies in the United States.
Karamtara Engineering Limited is a backward-integrated manufacturer of products for the renewable energy and power transmission sectors. The company operates 13 manufacturing facilities across India and Italy, offering solar module mounting structures, solar tracker components, lattice transmission towers, wind towers, fasteners, and overhead transmission line hardware.
Source: p.36, 244, 255
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Solar energy products | 78.99 | p.36, 255 |
| Lattice towers for transmission line | 6.35 | p.36, 255 |
| Others (OHTL fittings, services, scrap, profiles) | 6.11 | p.37, 255 |
| Fasteners | 5.42 | p.37, 255 |
| Angular tower for wind turbines | 2.05 | p.37, 255 |
| Tubular towers for wind turbines | 1.08 | p.37, 255 |
The global renewable energy transition is accelerating driven by decarbonization mandates, falling solar PV technology costs, and grid expansion. Global solar PV capacity additions are projected to reach 660 GW annually by CY2030, with solar tracker penetration increasing to 65% of annual capacity additions. In India, installed solar tracking products market reached USD 2,819 million in Fiscal 2026 and is projected to expand to USD 4,544 million by Fiscal 2031 at a 10.0% CAGR. Concurrently, expanding transmission infrastructure and wind power installations drive sustained demand for lattice towers, tubular wind towers, and specialized industrial fasteners.
Growth rate: 10.0% CAGR (FY26-FY31P for Indian solar tracking products market); 14.8% CAGR (CY25-CY30P for global solar tracker structural components)
Market size: USD 2,819 million (Indian solar tracking products market in FY26); USD 70,562 million (Global solar tracker market in CY30P)
Sector slug: capital-goods
Source: p.143, 165, 174
The comparable set the company chose, which is itself a disclosure.
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| consolidated | FY26 | 0 | 228.754 | 5.31% | 4311.976 | yes | 328.335 |
| consolidated | FY25 | 0 | 139.332 | 4.41% | 3158.445 | yes | 194.858 |
| consolidated | FY24 | 0 | 102.65 | 4.23% | 2425.15 | yes | 88.054 |
Written before listing, answered from the document itself.
How will the ₹ 1,350.00 Crore Fresh Issue proceeds be utilized?
The company will deploy ₹ 850.00 Crore toward prepayment/repayment of outstanding debt, ₹ 210.00 Crore for funding capital expenditure for the new Tarapur plant, and the remaining balance for general corporate purposes.
p.105
What is the customer and geographic concentration profile?
In Fiscal 2026, domestic sales accounted for 58.46% (₹ 2,520.77 Crore) and export sales contributed 40.52% (₹ 1,747.49 Crore). Top 10 customers contributed 48.63% of total revenue from operations.
p.42, 255
What drove PAT growth to ₹ 228.75 Crore in Fiscal 2026?
PAT growth (+64.18% YoY) was driven by 36.52% revenue growth in high-margin solar tracker components, economies of scale, and operating leverage from captive galvanizing lines.
p.308, 320
What are the primary working capital and debt risks facing the company?
Total borrowings stood at ₹ 1,030.13 Crore in FY26 with trade payables at ₹ 1,324.70 Crore, though ₹ 850.00 Crore of debt will be retired post-IPO.
p.105, 285, 336
What the issue priced at, on the figures in the document.
How the book filled. A category that bid far above the rest is a different signal from a uniformly covered issue.
Ceo: Rajesh Kumar Saraf
Pending litigation against Company: Tax proceedings of ₹ 14.85 Crore (₹ 148.52 million), Civil proceedings of ₹ 8.42 Crore (₹ 84.20 million), and Criminal proceedings with no quantifiable monetary liability. Pending litigation against Directors/Promoters: Tax proceedings of ₹ 2.15 Crore (₹ 21.50 million).
Auditor name: S R Batliboi & Co. LLP, Chartered Accountants
Promoters Rajesh Kumar Saraf and Sunil Kumar Saraf hold 81,250,000 Equity Shares representing 82.45% of the pre-Offer paid-up Equity Share capital.
Statutory Auditor S R Batliboi & Co. LLP issued unmodified examination reports on the Restated Consolidated Financial Information for Fiscal 2026, 2025, and 2024. CARO reports disclosed minor delays in statutory dues deposit (TDS and Provident Fund) and technical delay in quarterly stock/receivables statement submissions to working capital banks.
Source: p.88, 280, 281, 336, 382
Transactions with promoters, directors and their entities, as disclosed.
| Counterparty | Amount cr | Nature | Relationship | Core function | Source |
|---|---|---|---|---|---|
| Rajesh Kumar Saraf | 9 | Managerial Remuneration | Chairman, Managing Director and Promoter | Strategic leadership and executive management | p.375 |
| Sunil Kumar Saraf | 6 | Managerial Remuneration | Whole-time Director and Promoter | Operations and technical oversight | p.375 |
CARO reports noted minor statutory dues delays in depositing Tax Deducted at Source (TDS) of ₹ 0.45 Crore and Provident Fund of ₹ 0.18 Crore in Fiscal 2026, with no undisputed dues outstanding for over six months at year-end.
Source: p.280, 336
A change between the two filings is a disclosure in itself.
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-247 cr, negative in 4 of 6 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Borrowings rose 117% over two years while the company also carries ₹9 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Borrowings moved to ₹1,105 cr from ₹509 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Capital work-in-progress has stayed high (39% of fixed assets) without converting to productive assets — worth checking whether projects are genuinely progressing.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
CWIP ₹485 cr vs ₹17 cr two years earlier, against fixed assets ₹1,238 cr. Perennial CWIP that never becomes a fixed asset can hide stalled projects or capitalised costs that should have been expensed.
Operating cash is 295% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹675 cr against trailing net profit ₹229 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Debt rose over 3 years, and most of it (149%) has turned into fixed assets and projects under construction — the borrowing is building the business.
Why this reading: A positive signal: leverage taken on is visibly becoming productive capacity, not disappearing.
New borrowing ₹777 cr largely matched by an asset build of ₹1,159 cr. Debt that funds capacity is a different thing from debt that funds nothing.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are -12.9% of assets. Free cash flow negative in 4 of 6 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹1,210 cr ÷ ₹536 cr, over 6 years
2.26×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹229 − ₹675) cr ÷ average assets
-12.9%
Negative means cash exceeded profit — the healthier reading. Positive above ~10% is where accruals start to dominate earnings.net margin × asset turnover × leverage
5.3% × 1.04 × 3.39
18.8%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹452 cr ÷ ₹141 cr
3.21×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹1,105 cr ÷ ₹1,220 cr
0.91×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +205% vs revenue +170%, FY2023 to FY2026
36pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 82.01% to 82.01% across these quarters.
FII held steady from 2.25% to 2.25% across these quarters.
MF held steady from 1.66% to 1.66% across these quarters.
Other held steady from 14.08% to 14.08% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 91 | 87 | 72 | 86 | 108 | 111 |
| Inventory days
How long stock sits before it sells | 262 | 158 | 135 | 95 | 120 | 84 |
| Payable days
How long the company takes to pay suppliers | 215 | 144 | 115 | 109 | 179 | 194 |
| Cash conversion cycle
Debtor + inventory − payable days | 137 | 102 | 93 | 71 | 48 | 1 |
| Working capital days | 27 | 24 | 28 | 12 | 28 | 3 |
| ROCE %
Return on capital employed | — | 12.0% | 15.0% | 25.0% | 24.0% | 23.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 1,046 | 1,245 | 1,600 | 2,425 | 3,158 | 4,312 |
| Other income | 16 | 2 | 0 | 1 | 7 | 2 |
| Depreciation | 32 | 31 | 32 | 35 | 38 | 51 |
| Finance cost | 82 | 78 | 76 | 93 | 128 | 141 |
| Profit before tax | 18 | 23 | 47 | 137 | 188 | 311 |
| Net profit (owners) | 10 | 13 | 42 | 103 | 139 | 229 |
| EPS (₹) | 18.98 | 22.86 | 76.57 | 185.54 | 4.77 | 7.83 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Sep 2023 | Sep 2024 |
|---|---|---|
| Revenue | 1,053 | 1,413 |
| Other Income | 1 | 1 |
| Expenses | 949 | 1,260 |
| Depreciation | 17 | 19 |
| Finance cost | 41 | 57 |
| Profit before tax | 48 | 79 |
| Net Profit | 39 | 59 |
| EPS | 70.35 | 106.62 |
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 6 | 6 | 6 | 6 | 292 | 292 |
| Reserves | 390 | 404 | 445 | 548 | 691 | 928 |
| Borrowings | 479 | 429 | 328 | 509 | 559 | 1,105 |
| Net block | 508 | 499 | 548 | 621 | 648 | 1,238 |
| CWIP | 10 | 40 | 16 | 17 | 196 | 485 |
| Investments | 1 | 1 | 1 | 1 | 4 | 9 |
| Total Assets | 1,442 | 1,544 | 1,537 | 1,845 | 2,762 | 4,141 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | -31 | 182 | 241 | 40 | 103 | 675 |
| Cash from investing | -18 | -56 | -61 | -124 | -276 | -959 |
| Cash from financing | 57 | -129 | -180 | 88 | 195 | 328 |
| Free cash flow | -58 | 126 | 181 | -74 | -221 | -247 |
| Net change in cash | 8 | -4 | 0 | 4 | 21 | 44 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.