Stock in Focus After Securing PLI Approval for Manufacturing Copper Tubes; Check Details

Synopsis: Kiri Industries shares rose 2% as its subsidiary Indo Asia Copper Limited (IACL) has received approval under the PLI Scheme for producing copper tubes for air conditioners, and issued a Letter of Intent for a hybrid wind-solar power project in Gujarat.

The shares of the Small-Cap company specialising in the manufacturing and exporting of a wide range of dyes, dye intermediates, and basic chemicals, are in focus upon securing an upon securing an Production Linked Incentive (PLI) approval for White Goods Manufacturing.

With a market capitalization of Rs. 2,797.95 Crores on Thursday, the shares of Kiri Industries Limited rose upto 1.8 percent, reaching a high of Rs. 484.60 from its opening price of Rs. 475.70. 

What Happened

Kiri Industries Limited’s subsidiary Indo Asia Copper Limited (“IACL”) has received approval under the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) from IFCI Limited on behalf of DPIIT, Ministry of Commerce & Industry. 

The approval covers Air Conditioners – High Value Intermediaries, with eligible products being Copper Tubes (Plain and/or Grooved), under the Normal Investment category, with a committed investment of Rs. 258.97 Crore.

Incentives under the Scheme, up to 4% of net sales, are subject to meeting prescribed investment and sales thresholds and verification by the competent authority. IACL will comply with all applicable Scheme conditions and statutory requirements within the prescribed timelines.

Along with it, the company has also issued a Letter of Intent (LOI) for the installation of a Hybrid Power Project at the Kamlapur site in Rajkot, Gujarat. The project, involving IB Vogt Solar India Private Limited and Four-Square Green Energy Private Limited, will combine 9.45 MW of wind and 8 MW of solar capacity. The total estimated cost is ~Rs. 101 crores, with commissioning expected within 10 months.

The project aims to optimize energy costs for the Company’s manufacturing facilities and contribute to sustainability by reducing the carbon footprint. It also aligns with the Company’s Environmental, Social, and Governance (ESG) objectives. 

Financials & Others

The company’s revenue rose by 23.38 percent from Rs. 173 crore in September 2024 to Rs. 213 crore in September 2025. Meanwhile, the Net profit declined from  Rs. 80 crore to  Rs. 20 crore during the same period.

The company has a decent return on capital employed (ROCE) of 10.5% and a return on equity (ROE) of 8.56%, indicating solid profitability. With a debt-to-equity ratio of 0.37, the company maintains a relatively low level of leverage. Additionally, the stock is trading at 0.88 times its book value, suggesting it is undervalued relative to its net assets.

Kiri Industries Ltd (KIL), established in 1998 in Ahmedabad, is a leading, fully integrated manufacturer and exporter of a wide range of dyes, dye intermediates, and basic chemicals in India. With a strong presence in the textile industry, it operates state-of-the-art manufacturing facilities in Gujarat, offering products like reactive, acid, and direct dyes. 

KIL to offer Internationally recognized quality products and services, and is an accredited and certified Key Business Partner with the world’s top Dyestuff majors across Asia-Pacific, the EU and the Americas.

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