KIRLOSBROS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials & Profitability

Profit Trends: Quarterly PAT dropped from ₹100 Cr to ₹47 Cr, but YoY profit variation remains positive at 14.9%. EPS of ₹33.8 is solid for a ₹2,075 stock.

Return Metrics

ROE: 15.8% and ROCE: 20.8% — strong indicators of capital efficiency.

Debt Profile: Debt-to-equity at 0.01 — virtually debt-free, a major strength in industrial manufacturing.

Dividend Yield: 0.34% — modest, but consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 63.3 Richly valued vs. industry PE of 44.8.

P/B Ratio ~9.93 Expensive relative to book value ₹209.

PEG Ratio 1.66 Indicates growth is priced at a premium.

🔍 Conclusion: Valuation is elevated, but supported by strong fundamentals and near-zero debt. PEG ratio suggests growth is reasonably priced, though not cheap.

🏭 Business Model & Competitive Edge

Core Operations: Kirloskar Brothers Ltd. is a global leader in fluid management solutions, specializing in engineered pumps, valves, hydro turbines, and turnkey water infrastructure projects.

Strategic Strengths

Delivered 1477% returns over 5 years

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Quarterly revenue growth of 13.4% with a 9.3% profit margin

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Strong export footprint and diversified industrial applications.

Growth Outlook

Technical targets for 2025 range from ₹2,071 to ₹2,125

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Stop-loss levels are pegged around ₹1,880–₹1,920, suggesting a well-defined risk zone

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Analyst sentiment remains bullish, with 86.8% recommending a “Buy”

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📉 Technicals & Entry Zone

RSI: 61.2 — slightly bullish, but not overheated.

MACD: 18.0 — positive momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — trend strength confirmed.

📌 Suggested Entry Zone: ₹1,980–₹2,050 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, global reach, and low debt support long-term compounding.

Buy on Dips: Prefer entry near ₹2,000, especially if RSI cools below 55.

Monitor: Order book strength, margin trends, and capex execution.

You can explore Kirloskar Brothers’ 2025–2035 price targets and technical outlook

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or review Trendlyne’s analyst sentiment and valuation scores

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for deeper insights. Let me know if you'd like a peer comparison with KSB or Elgi Equipments next.

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stockpricearchive.com

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trendlyne.com

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