⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KSB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | KSB | Market Cap | 14,139 Cr. | Current Price | 811 ₹ | High / Low | 918 ₹ |
| Stock P/E | 50.0 | Book Value | 92.7 ₹ | Dividend Yield | 0.49 % | ROCE | 25.0 % |
| ROE | 18.6 % | Face Value | 2.00 ₹ | DMA 50 | 742 ₹ | DMA 200 | 764 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 94.0 Cr. | PAT Prev Qtr | 65.0 Cr. |
| RSI | 68.0 | MACD | 13.7 | Volume | 6,77,592 | Avg Vol 1Wk | 2,26,113 |
| Low price | 648 ₹ | High price | 918 ₹ | PEG Ratio | 3.01 | Debt to equity | 0.00 |
| 52w Index | 60.5 % | Qtr Profit Var | 34.5 % | EPS | 15.2 ₹ | Industry PE | 35.8 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹65 Cr → ₹94 Cr), showing strong growth. EPS at ₹15.2 supports earnings strength.
- Margins: ROCE at 25% and ROE at 18.6% highlight solid efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet.
- Cash Flow: Strong operating performance supports healthy cash generation.
💹 Valuation Indicators
- P/E: 50.0, well above industry average (35.8), suggesting premium valuation.
- P/B: 8.75 (₹811 / ₹92.7), reflecting high market expectations.
- PEG Ratio: 3.01, indicating growth is priced at a premium.
- Intrinsic Value: Current price ₹811 is above fair value; better entry closer to ₹740–770.
🏢 Business Model & Competitive Advantage
- Strong presence in pumps and industrial solutions with diversified applications.
- High demand from infrastructure and manufacturing sectors supports growth.
- Debt-free balance sheet enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹740–770 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking steady growth exposure in industrial manufacturing, though valuation premium warrants caution.
✅ Positive
- Strong sequential PAT growth (+34.5%).
- Debt-free balance sheet ensures financial stability.
- High ROCE (25%) and ROE (18.6%) highlight efficient capital use.
- DII holdings increased by 0.38%, showing domestic institutional confidence.
⚠️ Limitation
- High P/E (50.0) compared to industry average (35.8).
- High P/B ratio reflects premium valuation.
- PEG ratio (3.01) suggests growth is expensive.
📉 Company Negative News
- FII holdings decreased by 0.06%, showing reduced foreign investor confidence.
- RSI at 68 indicates overbought conditions, raising caution for short-term traders.
📈 Company Positive News
- Sequential PAT growth from ₹65 Cr to ₹94 Cr.
- DII holdings increased by 0.38%, reflecting domestic institutional support.
- Debt-free status enhances long-term stability.
🏭 Industry
- Industry P/E at 35.8, lower than company’s P/E, indicating premium valuation.
- Industrial manufacturing sector remains resilient with strong demand from infrastructure and capital goods.
🔎 Conclusion
- KSB demonstrates strong fundamentals with efficient capital use and debt-free balance sheet.
- Valuation is premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹740–770 is favorable for long-term investors.
- Overall, a fundamentally strong company with growth prospects, though short-term overbought signals and valuation premium warrant caution.