Kennametal India Limited Fundamental Analysis (NSE: KENNAMET.NS)
Kennametal India Limited Fundamental Analysis (NSE: KENNAMET.NS)
Kennametal India Limited (NSE: KENNAMET.NS) shows moderate financial fundamentals with a PE ratio of 45.27, profit margin of 12.97%, and ROE of 24.46%. The company generates $15.1B in annual revenue with moderate year-over-year growth of 6.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KENNAMET.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKENNAMET.NS demonstrates superior asset utilization.
Valuation Score
ModerateKENNAMET.NS shows balanced valuation metrics.
Growth Score
ModerateKENNAMET.NS shows steady but slowing expansion.
Financial Health Score
ExcellentKENNAMET.NS maintains a strong and stable balance sheet.
Profitability Score
WeakKENNAMET.NS struggles to sustain strong margins.
Key Financial Metrics
Is KENNAMET.NS Expensive or Cheap?
P/E Ratio
KENNAMET.NS trades at 45.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KENNAMET.NS's PEG of 0.50 indicates potential undervaluation.
Price to Book
The market values Kennametal India Limited at 10.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.49 times EBITDA. This signals the market has high growth expectations.
How Well Does KENNAMET.NS Make Money?
Net Profit Margin
For every $100 in sales, Kennametal India Limited keeps $12.97 as profit after all expenses.
Operating Margin
Core operations generate 16.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.46 in profit for every $100 of shareholder equity.
ROA
Kennametal India Limited generates $15.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kennametal India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Kennametal India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
KENNAMET.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How KENNAMET.NS Stacks Against Its Sector Peers
| Metric | KENNAMET.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.27 | 29.55 | Worse (Expensive) |
| ROE | 24.46% | 1092.00% | Weak |
| Net Margin | 12.97% | -25130.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 2.35 | 21.72 | Strong Liquidity |
| ROA | 15.50% | -1325773.00% (disorted) | Strong |
KENNAMET.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kennametal India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
203.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
330.96%
Industry Style: Cyclical, Value, Infrastructure
High Growth