Kanani Industries Limited Fundamental Analysis
Kanani Industries Limited (KANANIIND.BO) shows weak financial fundamentals with a PE ratio of 10.70, profit margin of 1.48%, and ROE of 3.87%. The company generates $1.9B in annual revenue with weak year-over-year growth of -24.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KANANIIND.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakKANANIIND.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKANANIIND.BO trades at attractive valuation levels.
Growth Score
ModerateKANANIIND.BO shows steady but slowing expansion.
Financial Health Score
ExcellentKANANIIND.BO maintains a strong and stable balance sheet.
Profitability Score
WeakKANANIIND.BO struggles to sustain strong margins.
Key Financial Metrics
Is KANANIIND.BO Expensive or Cheap?
P/E Ratio
KANANIIND.BO trades at 10.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KANANIIND.BO's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Kanani Industries Limited at 0.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.31 times EBITDA. This signals the market has high growth expectations.
How Well Does KANANIIND.BO Make Money?
Net Profit Margin
For every $100 in sales, Kanani Industries Limited keeps $1.48 as profit after all expenses.
Operating Margin
Core operations generate 0.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.87 in profit for every $100 of shareholder equity.
ROA
Kanani Industries Limited generates $2.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kanani Industries Limited generates limited operating cash flow of $-10.60M, signaling weaker underlying cash strength.
Free Cash Flow
Kanani Industries Limited generates weak or negative free cash flow of $-10.60M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.05 in free cash annually.
FCF Yield
KANANIIND.BO converts -3.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How KANANIIND.BO Stacks Against Its Sector Peers
| Metric | KANANIIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.70 | 24.18 | Better (Cheaper) |
| ROE | 3.87% | 1179.00% | Weak |
| Net Margin | 1.48% | 2624.00% | Weak |
| Debt/Equity | 0.01 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 3.03 | 2.83 | Strong Liquidity |
| ROA | 2.47% | -8089.00% (disorted) | Weak |
KANANIIND.BO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kanani Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-50.09%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-66.09%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
2.00%
Industry Style: Cyclical, Growth, Discretionary
Growing