KPIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | KPIL | Market Cap | 19,922 Cr. | Current Price | 1,165 ₹ | High / Low | 1,336 ₹ |
| Stock P/E | 24.2 | Book Value | 442 ₹ | Dividend Yield | 0.77 % | ROCE | 15.0 % |
| ROE | 10.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,163 ₹ | DMA 200 | 1,176 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | -0.20 % | PAT Qtr | 200 Cr. | PAT Prev Qtr | 201 Cr. |
| RSI | 55.1 | MACD | -12.8 | Volume | 72,489 | Avg Vol 1Wk | 89,451 |
| Low price | 770 ₹ | High price | 1,336 ₹ | PEG Ratio | 0.76 | Debt to equity | 0.50 |
| 52w Index | 69.9 % | Qtr Profit Var | 51.1 % | EPS | 46.8 ₹ | Industry PE | 16.9 |
📊 Financials: KPIL shows moderate fundamentals with ROCE at 15.0% and ROE at 10.3%, reflecting average capital efficiency. Debt-to-equity ratio of 0.50 indicates moderate leverage, which requires monitoring. Quarterly PAT remained stable (200 Cr. vs. 201 Cr.), suggesting consistent earnings but limited growth momentum. Cash flows appear steady, supported by operational efficiency.
💹 Valuation: Current P/E of 24.2 is higher than industry average (16.9), suggesting premium valuation. P/B ratio (~2.6) is reasonable, while PEG ratio of 0.76 indicates fair growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 1,080–1,120 ₹, offering margin of safety compared to current price (1,165 ₹).
🏢 Business Model & Advantage: KPIL operates in infrastructure and power projects, with expertise in EPC contracts. Its competitive advantage lies in scale, diversified project portfolio, and steady execution capabilities. Market cap of 19,922 Cr. positions it as a mid-to-large cap player in the infrastructure sector.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 1,080–1,120 ₹. Long-term investors may hold cautiously given stable fundamentals and sector demand, but moderate leverage and premium valuation warrant careful monitoring. Technical indicators (RSI 55.1, MACD negative) show neutral-to-weak short-term momentum.
Positive
- Stable PAT performance (200 Cr. vs. 201 Cr.) indicates earnings consistency.
- P/B ratio (~2.6) remains reasonable compared to peers.
- Dividend yield of 0.77% adds modest income appeal.
- Strong presence in infrastructure and EPC projects.
Limitation
- ROCE (15.0%) and ROE (10.3%) are moderate compared to sector leaders.
- Debt-to-equity ratio of 0.50 indicates higher leverage risk.
- P/E (24.2) above industry average (16.9) suggests premium valuation.
- Quarterly PAT shows no growth momentum.
- Stock trading near DMA 50 (1,163 ₹) and DMA 200 (1,176 ₹) signals lack of breakout strength.
Company Negative News
- Decline in FII holding (-0.24%) reflects reduced foreign investor confidence.
- Decline in DII holding (-0.20%) shows reduced domestic institutional support.
Company Positive News
- Stable quarterly PAT performance highlights resilience.
- Strong execution capabilities in EPC projects support long-term demand.
Industry
- Industry P/E at 16.9 indicates moderate valuation levels.
- Infrastructure sector benefits from government spending and long-term demand.
- Companies with scale and execution strength hold competitive advantage.
Conclusion
⚖️ KPIL demonstrates stable fundamentals with consistent earnings and reasonable valuation metrics. However, moderate return ratios, higher leverage, and premium P/E temper the outlook. Entry around 1,080–1,120 ₹ is recommended for long-term investors, with cautious monitoring of debt levels and sector trends.
I can also outline support and resistance levels based on DMA and RSI to complement this fundamental view if you'd like a technical angle added.