KSB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | KSB | Market Cap | 17,031 Cr. | Current Price | 979 ₹ | High / Low | 1,028 ₹ |
| Stock P/E | 63.3 | Book Value | 92.7 ₹ | Dividend Yield | 0.45 % | ROCE | 25.0 % |
| ROE | 18.6 % | Face Value | 2.00 ₹ | DMA 50 | 858 ₹ | DMA 200 | 796 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | -0.31 % | PAT Qtr | 37.3 Cr. | PAT Prev Qtr | 94.0 Cr. |
| RSI | 70.2 | MACD | 50.9 | Volume | 7,24,888 | Avg Vol 1Wk | 4,02,273 |
| Low price | 667 ₹ | High price | 1,028 ₹ | PEG Ratio | 3.81 | Debt to equity | 0.00 |
| 52w Index | 86.3 % | Qtr Profit Var | -23.9 % | EPS | 14.5 ₹ | Industry PE | 39.3 |
Entry Zone: 940 ₹ – 960 ₹ (near support, above 50 DMA)
Exit Guidance: 1,000 ₹ – 1,020 ₹ (resistance zone)
Holding View: Medium-term cautious holding with valuation risk
Positive
- Strong ROCE (25%) and ROE (18.6%) highlight efficient capital use
- Debt-free balance sheet (0.00 debt-to-equity) ensures financial stability
- EPS of 14.5 ₹ supports profitability
- FII holdings increased (+0.14%), signaling foreign investor confidence
- Strong 52-week index return (86.3%) reflects sector momentum
Limitation
- High P/E of 63.3 compared to industry PE of 39.3 — valuation stretched
- PEG ratio of 3.81 indicates expensive growth prospects
- Quarterly PAT decline (94 Cr → 37.3 Cr) raises earnings consistency concerns
- RSI at 70.2 suggests overbought conditions
- DII holdings decreased (-0.31%), showing reduced domestic institutional support
Company Negative News
- Sharp quarterly profit decline impacting sentiment
- Valuation premium relative to peers may limit upside
Company Positive News
- Debt-free structure enhances long-term sustainability
- Strong historical returns with robust sector performance
- Technical momentum supported by MACD (50.9)
Industry
- Industry PE at 39.3, significantly lower than KSB’s 63.3 — sector valuations more moderate
- Sector momentum strong with high 52-week index returns
Conclusion
KSB demonstrates strong fundamentals with efficient capital returns and a debt-free balance sheet. However, stretched valuations, expensive PEG ratio, and sharp quarterly profit decline limit near-term upside. Entry near 940–960 ₹ offers a risk-managed opportunity, with exits around 1,000–1,020 ₹ advisable. Long-term holding remains attractive if earnings stabilize, though valuation monitoring and overbought technical conditions require caution.
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