Karma Energy Limited
Karma Energy Limited Fundamental Analysis
Karma Energy Limited (KARMAENG.NS) shows moderate financial fundamentals with a PE ratio of 19.21, profit margin of 22.16%, and ROE of 5.35%. The company generates $0.1B in annual revenue with weak year-over-year growth of -29.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KARMAENG.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakKARMAENG.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKARMAENG.NS trades at attractive valuation levels.
Growth Score
ModerateKARMAENG.NS shows steady but slowing expansion.
Financial Health Score
ExcellentKARMAENG.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateKARMAENG.NS maintains healthy but balanced margins.
Key Financial Metrics
Is KARMAENG.NS Expensive or Cheap?
P/E Ratio
KARMAENG.NS trades at 19.21 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KARMAENG.NS's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Karma Energy Limited at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.83 times EBITDA. This signals the market has high growth expectations.
How Well Does KARMAENG.NS Make Money?
Net Profit Margin
For every $100 in sales, Karma Energy Limited keeps $22.16 as profit after all expenses.
Operating Margin
Core operations generate -28.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.35 in profit for every $100 of shareholder equity.
ROA
Karma Energy Limited generates $4.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Karma Energy Limited produces operating cash flow of $11.24M, showing steady but balanced cash generation.
Free Cash Flow
Karma Energy Limited generates strong free cash flow of $10.47M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
KARMAENG.NS converts 2.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.005
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How KARMAENG.NS Stacks Against Its Sector Peers
| Metric | KARMAENG.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.21 | 20.28 | Neutral |
| ROE | 5.35% | 920.00% | Weak |
| Net Margin | 22.16% | 737.00% | Weak |
| Debt/Equity | 0.04 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 4.75 | 1.44 | Strong Liquidity |
| ROA | 4.25% | -6170.00% (disorted) | Weak |
KARMAENG.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Karma Energy Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-79.19%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
659.21%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-78.55%
Industry Style: Defensive, Dividend, Income
Declining