KPIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | KPIL | Market Cap | 21,601 Cr. | Current Price | 1,263 ₹ | High / Low | 1,336 ₹ |
| Stock P/E | 20.2 | Book Value | 481 ₹ | Dividend Yield | 0.71 % | ROCE | 17.1 % |
| ROE | 13.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,210 ₹ | DMA 200 | 1,178 ₹ |
| Chg in FII Hold | -0.81 % | Chg in DII Hold | 1.22 % | PAT Qtr | 371 Cr. | PAT Prev Qtr | 233 Cr. |
| RSI | 56.5 | MACD | 16.9 | Volume | 3,60,390 | Avg Vol 1Wk | 2,58,619 |
| Low price | 1,007 ₹ | High price | 1,336 ₹ | PEG Ratio | 0.70 | Debt to equity | 0.36 |
| 52w Index | 78.0 % | Qtr Profit Var | 39.9 % | EPS | 48.7 ₹ | Industry PE | 17.5 |
📊 Financials: KPIL demonstrates strong fundamentals with ROCE at 17.1% and ROE at 13.9%, reflecting efficient capital use. Debt-to-equity ratio of 0.36 indicates moderate leverage, manageable within industry norms. EPS stands at ₹48.7, supported by PAT growth from ₹233 Cr. to ₹371 Cr. Quarterly profit variation (+39.9%) highlights strong earnings momentum. Dividend yield at 0.71% provides modest shareholder returns.
💹 Valuation: Current P/E of 20.2 is slightly above the industry average of 17.5, suggesting fair valuation. P/B ratio (~2.6, 1263/481) reflects reasonable premium pricing relative to book value. PEG ratio of 0.70 indicates undervaluation relative to growth prospects. Intrinsic value analysis suggests the stock is attractively priced with a margin of safety.
🏢 Business Model & Health: KPIL operates in infrastructure and power projects, with strong competitive advantage in EPC contracts and renewable energy. Moderate debt, consistent profitability, and robust demand in infrastructure support long-term sustainability. Institutional participation is mixed, with FII holdings declining (-0.81%) but DII holdings increasing (+1.22%).
📈 Entry Zone: Technical indicators (RSI 56.5, MACD 16.9, DMA 50 at ₹1,210, DMA 200 at ₹1,178) suggest bullish momentum. Accumulation near ₹1,200–₹1,250 could be favorable. Long-term investors may hold, given strong fundamentals and sectoral growth outlook.
Positive
- ✅ Strong PAT growth (+39.9%) indicates earnings resilience.
- ✅ Healthy ROCE (17.1%) and ROE (13.9%) reflect efficient capital use.
- ✅ PEG ratio (0.70) highlights undervaluation relative to growth.
- ✅ DII holdings increased (+1.22%), showing domestic institutional confidence.
Limitation
- ⚠️ Moderate debt-to-equity ratio (0.36) requires monitoring.
- ⚠️ P/E (20.2) slightly above industry average (17.5) suggests limited undervaluation.
- ⚠️ Decline in FII holdings (-0.81%) reflects reduced foreign investor confidence.
Company Negative News
- 📉 FII holdings declined (-0.81%), signaling cautious foreign sentiment.
- 📉 Moderate leverage compared to peers could limit flexibility.
Company Positive News
- 📈 PAT growth from ₹233 Cr. to ₹371 Cr. shows strong operational performance.
- 📈 DII holding increased (+1.22%), reflecting domestic institutional support.
Industry
- 🌐 Industry P/E at 17.5 indicates moderate sector valuations.
- 🌐 Infrastructure and power sector benefits from government spending and renewable energy demand.
Conclusion
🔎 KPIL is fundamentally strong with robust earnings growth, efficient capital returns, and manageable debt. Valuations are fair with PEG suggesting undervaluation relative to growth. Entry near ₹1,200–₹1,250 offers a favorable risk-reward opportunity. Long-term holding is justified, though investors should monitor debt levels and institutional sentiment closely.