KIRLOSBROS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Here’s a full-spectrum analysis of Kirloskar Brothers Ltd (KIRLOSBROS)

📊 Core Financials

Profitability

EPS of ₹52.3 is robust, supported by strong ROE (21.6%) and ROCE (27.6%) — excellent capital efficiency.

PAT grew from ₹122 Cr to ₹138 Cr — a healthy uptick despite a quarterly profit variation of -9.26%, which may reflect seasonality or one-offs.

Debt & Liquidity

Debt-to-equity ratio of 0.09 — extremely low, indicating a conservative capital structure.

Dividend yield of 0.36% — modest but consistent.

📈 Valuation Metrics

Metric Value Remarks

P/E Ratio 37.4 Slightly below industry average (41.8) — fair valuation

P/B Ratio ~7.34 Based on Book Value ₹264 — moderately high

PEG Ratio 0.58 Excellent — suggests undervaluation relative to growth

Intrinsic Value ₹1,650–₹1,750 (est.) Current price slightly above fair value zone

🧠 Business Model & Competitive Edge

Model: Engineering-led manufacturer of fluid management systems — pumps, valves, hydro turbines.

Strengths

Legacy brand with over a century of industrial experience

Strong presence in infrastructure sectors like irrigation, water supply, and defense

High-margin engineered products and global footprint

Challenges

Project-based revenue can be lumpy

Exposure to commodity price fluctuations

📉 Technical & Sentiment Indicators

RSI at 38.2 — nearing oversold zone, potential for technical bounce

MACD negative at -16.8 — bearish momentum

DMA50 and DMA200 near current price — trend is consolidating

FII and DII holdings slightly up — mild institutional accumulation

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹1,850–₹1,900 — near RSI support and DMA200

Stop Loss: ₹1,800 (daily close)

Targets: ₹2,050 short-term, ₹2,250 medium-term

Long-Term Holding: Attractive for infrastructure-focused portfolios. Strong fundamentals, low debt, and high ROCE make it a solid 3–5 year compounder.

Want to see how it compares with Thermax or Triveni Turbines in the industrial machinery space? I can pull that up for you.

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