KIRLOSBROS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | KIRLOSBROS | Market Cap | 13,737 Cr. | Current Price | 1,730 ₹ | High / Low | 2,476 ₹ |
| Stock P/E | 52.3 | Book Value | 213 ₹ | Dividend Yield | 0.40 % | ROCE | 20.8 % |
| ROE | 15.8 % | Face Value | 2.00 ₹ | DMA 50 | 1,618 ₹ | DMA 200 | 1,698 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | 0.06 % | PAT Qtr | 78.2 Cr. | PAT Prev Qtr | 37.6 Cr. |
| RSI | 57.7 | MACD | 50.6 | Volume | 62,104 | Avg Vol 1Wk | 1,04,110 |
| Low price | 1,333 ₹ | High price | 2,476 ₹ | PEG Ratio | 1.37 | Debt to equity | 0.02 |
| 52w Index | 34.7 % | Qtr Profit Var | 55.4 % | EPS | 31.7 ₹ | Industry PE | 39.3 |
Entry Zone: 1,720 ₹ – 1,750 ₹ (near support, above 50 DMA)
Exit Guidance: 1,850 ₹ – 1,900 ₹ (resistance zone)
Holding View: Strong candidate for medium to long-term holding with valuation caution
Positive
- Strong ROCE (20.8%) and ROE (15.8%) highlight efficient capital utilization
- Very low debt-to-equity ratio (0.02) ensures financial stability
- PEG ratio of 1.37 suggests fair valuation relative to growth
- Quarterly PAT growth (37.6 Cr → 78.2 Cr) shows robust earnings momentum
- EPS of 31.7 ₹ supports profitability
- Institutional support with FII (+0.19%) and DII (+0.06%) accumulation
Limitation
- High P/E of 52.3 compared to industry PE of 39.3 — valuation stretched
- Volume (62,104) below weekly average (1,04,110) indicates weaker participation
- Price still below 52-week high (2,476 ₹), showing resistance overhead
Company Negative News
- Valuation premium relative to peers may limit upside potential
- Lower trading volumes compared to average
Company Positive News
- Strong quarterly profit growth boosts investor sentiment
- Institutional accumulation supports long-term confidence
- Technical indicators (RSI 57.7, MACD 50.6) show bullish momentum
Industry
- Industry PE at 39.3, lower than KIRLOSBROS’s 52.3 — sector valuations more moderate
- Sector momentum strong with 52-week index return of 34.7%
Conclusion
Kirloskar Brothers demonstrates strong fundamentals with efficient capital returns, low leverage, and robust profit growth. However, stretched valuations and weaker trading volumes limit near-term upside. Entry near 1,720–1,750 ₹ offers a favorable setup, with exits around 1,850–1,900 ₹ advisable. Long-term holding remains attractive if earnings growth sustains, though valuation monitoring and volume recovery are essential.
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