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KPIL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 4.0
📊 Financial Overview
- Profitability: PAT declined from ₹265 Cr to ₹201 Cr QoQ, but YoY growth remains strong at 72.1%.
- Return Metrics: ROE at 10.3% and ROCE at 15.0% are decent, though slightly below top-tier benchmarks.
- Valuation: P/E of 28.5 is moderately above industry average (22.1), suggesting fair-to-premium valuation.
- P/B Ratio: With a book value of ₹421 and price of ₹1,259, P/B is ~2.99, indicating reasonable valuation.
- PEG Ratio: 0.90 reflects balanced growth-adjusted valuation.
- Debt Profile: Debt-to-equity ratio of 0.48 is manageable, though slightly elevated.
- Momentum: RSI at 49.6 and MACD at 0.96 suggest neutral sentiment with potential for upside.
🏢 Business Model & Competitive Edge
- Kalpataru Projects International Ltd (KPIL) operates in engineering, procurement, and construction (EPC) across power transmission, railways, and infrastructure.
- Strong execution capabilities and diversified order book across geographies provide resilience and scalability.
- Focus on high-margin international projects and strategic acquisitions enhances long-term growth visibility.
💡 Entry Zone Recommendation
- Current price is near DMA 50 (₹1,248) and above DMA 200 (₹1,176), indicating consolidation.
- Suggested Entry Zone: ₹1,220–₹1,250 for accumulation.
- Long-term holding is favorable given strong order pipeline and sectoral tailwinds.
✅ Positive
- Strong YoY PAT growth and EPS of ₹43.3.
- Reasonable PEG ratio and fair valuation metrics.
- FII holdings increased by 0.14%, showing renewed foreign interest.
⚠️ Limitation
- QoQ PAT decline may reflect project timing or margin pressure.
- ROE and ROCE are moderate compared to industry leaders.
- Debt-to-equity ratio of 0.48 is slightly elevated for an EPC player.
📉 Company Negative News
- DII holdings declined by 0.71%, indicating cautious domestic sentiment.
- Stock has corrected ~7% from its 52-week high of ₹1,353.
📈 Company Positive News
- Strong quarterly earnings and robust order inflows.
- Strategic focus on international markets and infrastructure diversification gaining traction.
🏭 Industry
- Infrastructure and EPC sectors benefit from government capex and global energy transition.
- Industry P/E of 22.1 supports KPIL’s moderate premium valuation.
🧾 Conclusion
- KPIL is a well-diversified EPC player with strong fundamentals and global growth visibility.
- Entry near ₹1,220–₹1,250 offers a favorable long-term opportunity.
- Monitor execution consistency and debt levels for sustained performance.
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