KPIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 4.0

📊 Core Financials

• Quarterly PAT stable at ₹200 Cr. vs ₹201 Cr. (flat growth).
• ROCE at 15.0% and ROE at 10.3% show moderate efficiency.
• Debt-to-equity ratio at 0.50 indicates moderate leverage but manageable.
• Cash flows supported by strong EPS of ₹46.8 and consistent profitability.

💹 Valuation Indicators

• P/E Ratio: 23.9 (slightly above industry PE of 18.8, but not excessive).
• P/B Ratio: ~2.6 (CMP ₹1150 / Book Value ₹442).
• PEG Ratio: 0.75 (reasonable, suggesting fair valuation relative to growth).
• Intrinsic Value: Close to CMP, offering moderate margin of safety.

🏢 Business Model & Competitive Advantage

• KPIL operates in infrastructure and engineering projects with diversified order book.
• Strong execution capabilities and presence in power, water, and industrial projects.
• Competitive advantage lies in scale, diversified portfolio, and government contracts.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive near ₹950–₹1050 (closer to 52-week low ₹770).
• Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth, with moderate risk due to leverage.

✅ Positive

• Strong EPS of ₹46.8 supports valuation.
• Quarterly profit variation shows resilience (+51.1% YoY).
• FII holdings increased slightly (+0.14%).

⚠️ Limitation

• Debt-to-equity ratio at 0.50 is higher than ideal.
• ROE at 10.3% is modest compared to industry leaders.
• DII holdings reduced (-0.71%), showing cautious domestic sentiment.

📉 Company Negative News

• Stock trading below DMA 50 & DMA 200, reflecting short-term weakness.
• RSI at 28.8 indicates oversold territory, showing bearish momentum.

📈 Company Positive News

• Quarterly PAT remains stable at ₹200 Cr., showing consistency.
• Strong order inflows in infrastructure and industrial projects.

🏭 Industry

• Infrastructure sector growing with government spending and urbanization.
• Industry PE at 18.8, showing sector valuations are moderate compared to KPIL’s premium.

🔎 Conclusion

KPIL demonstrates solid fundamentals with consistent profitability and reasonable valuations. Debt levels are moderate but manageable, supported by strong EPS. The stock is currently oversold, offering a potential entry near ₹950–₹1050. Long-term investors may benefit from infrastructure growth, though leverage and modest ROE warrant cautious optimism.