⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KIRLOSBROS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | KIRLOSBROS | Market Cap | 12,469 Cr. | Current Price | 1,572 ₹ | High / Low | 2,476 ₹ |
| Stock P/E | 47.4 | Book Value | 213 ₹ | Dividend Yield | 0.44 % | ROCE | 20.8 % |
| ROE | 15.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,588 ₹ | DMA 200 | 1,726 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.42 % | PAT Qtr | 78.2 Cr. | PAT Prev Qtr | 37.6 Cr. |
| RSI | 51.0 | MACD | -10.4 | Volume | 81,736 | Avg Vol 1Wk | 65,404 |
| Low price | 1,406 ₹ | High price | 2,476 ₹ | PEG Ratio | 1.25 | Debt to equity | 0.02 |
| 52w Index | 15.6 % | Qtr Profit Var | 55.4 % | EPS | 31.7 ₹ | Industry PE | 35.8 |
📊 Core Financials
- Revenue & Profitability: PAT rose strongly (₹37.6 Cr → ₹78.2 Cr), showing robust growth. EPS at ₹31.7 reflects solid earnings capacity.
- Margins: ROCE at 20.8% and ROE at 15.8% highlight healthy efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.02 indicates an almost debt-free balance sheet.
- Cash Flow: Strong operating performance supports healthy cash generation.
💹 Valuation Indicators
- P/E: 47.4, above industry average (35.8), suggesting premium valuation.
- P/B: 7.38 (₹1,572 / ₹213), reflecting high market expectations.
- PEG Ratio: 1.25, indicating growth is fairly priced but not cheap.
- Intrinsic Value: Current price ₹1,572 is above fair value; better entry closer to ₹1,400–1,500.
🏢 Business Model & Competitive Advantage
- Strong presence in pumps and industrial engineering solutions.
- Diversified applications across infrastructure, manufacturing, and utilities.
- Near debt-free balance sheet enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,400–1,500 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to industrial growth, though valuation premium warrants caution.
✅ Positive
- Strong sequential PAT growth (+55.4%).
- Debt-to-equity ratio of 0.02 ensures financial stability.
- ROCE (20.8%) and ROE (15.8%) highlight efficient capital use.
- DII holdings increased by 0.42%, showing domestic institutional confidence.
⚠️ Limitation
- High P/E (47.4) compared to industry average (35.8).
- High P/B ratio reflects premium valuation.
- PEG ratio (1.25) suggests growth is fairly priced, not undervalued.
- Stock trading below DMA 50 (₹1,588) and DMA 200 (₹1,726), showing weak momentum.
📉 Company Negative News
- MACD (-10.4) suggests bearish momentum.
- Premium valuation compared to industry raises caution.
📈 Company Positive News
- Sequential PAT growth from ₹37.6 Cr to ₹78.2 Cr.
- FII holdings increased slightly (+0.04%), reflecting foreign investor interest.
- DII holdings increased by 0.42%, showing domestic institutional support.
🏭 Industry
- Industry P/E at 35.8, lower than company’s P/E (47.4), indicating premium valuation.
- Industrial engineering sector remains resilient with strong demand from infrastructure and utilities.
🔎 Conclusion
- Kirloskar Brothers demonstrates strong fundamentals with efficient capital use and low debt.
- Valuation is premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹1,400–1,500 is favorable for long-term investors.
- Overall, a fundamentally strong company with growth prospects, though short-term momentum weakness and valuation premium warrant caution.