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KPIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | KPIL | Market Cap | 18,105 Cr. | Current Price | 1,060 ₹ | High / Low | 1,336 ₹ |
| Stock P/E | 20.2 | Book Value | 442 ₹ | Dividend Yield | 0.85 % | ROCE | 15.0 % |
| ROE | 10.3 % | Face Value | 2.00 ₹ | DMA 50 | 1,138 ₹ | DMA 200 | 1,163 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | -0.20 % | PAT Qtr | 233 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 40.7 | MACD | -15.6 | Volume | 5,50,864 | Avg Vol 1Wk | 3,60,388 |
| Low price | 770 ₹ | High price | 1,336 ₹ | PEG Ratio | 0.64 | Debt to equity | 0.50 |
| 52w Index | 51.3 % | Qtr Profit Var | 48.1 % | EPS | 50.0 ₹ | Industry PE | 15.2 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹200 Cr → ₹233 Cr), showing strong growth. EPS at ₹50 reflects solid earnings capacity.
- Margins: ROCE at 15% and ROE at 10.3% highlight moderate efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.50 indicates moderate leverage compared to peers.
- Cash Flow: Strong operating performance supports cash generation, though debt levels need monitoring.
💹 Valuation Indicators
- P/E: 20.2, slightly above industry average (15.2), suggesting fair-to-premium valuation.
- P/B: 2.40 (₹1,060 / ₹442), reflecting reasonable pricing relative to book value.
- PEG Ratio: 0.64, attractive as growth is undervalued compared to earnings.
- Intrinsic Value: Current price ₹1,060 is near fair value; better entry closer to ₹950–1,000.
🏢 Business Model & Competitive Advantage
- Strong presence in infrastructure and power projects with diversified revenue streams.
- Consistent demand from government and private contracts supports growth.
- Moderate debt levels provide leverage but require careful monitoring.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹950–1,000 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth, though moderate debt and valuation premium warrant caution.
✅ Positive
- Strong sequential PAT growth (+48.1%).
- PEG ratio (0.64) suggests undervaluation relative to growth.
- Dividend yield of 0.85% adds to shareholder returns.
⚠️ Limitation
- ROE (10.3%) and ROCE (15%) are moderate compared to industry leaders.
- Debt-to-equity ratio of 0.50 indicates moderate leverage.
- Stock trading below DMA 50 (₹1,138) and DMA 200 (₹1,163), showing weak momentum.
📉 Company Negative News
- FII holdings decreased by 0.24%, showing reduced foreign investor confidence.
- DII holdings decreased by 0.20%, reflecting lower domestic institutional support.
- Technical indicators (RSI 40.7, MACD -15.6) suggest bearish momentum.
📈 Company Positive News
- Sequential PAT growth from ₹200 Cr to ₹233 Cr.
- EPS of ₹50 reflects strong earnings capacity.
- Dividend yield of 0.85% supports investor returns.
🏭 Industry
- Industry P/E at 15.2, lower than company’s P/E (20.2), indicating slight premium valuation.
- Infrastructure and power sector demand remains strong, supported by government spending and private investment.
🔎 Conclusion
- KPIL demonstrates solid fundamentals with strong earnings growth and reasonable valuation.
- Moderate debt levels and average return ratios require monitoring.
- Entry zone between ₹950–1,000 is favorable for long-term investors.
- Overall, a fundamentally stable company with growth prospects, though short-term momentum weakness and moderate debt warrant caution.