Kirloskar Brothers Limited Fundamental Analysis
Kirloskar Brothers Limited (KIRLOSBROS.NS) shows moderate financial fundamentals with a PE ratio of 36.38, profit margin of 8.23%, and ROE of 16.85%. The company generates $45.4B in annual revenue with strong year-over-year growth of 12.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KIRLOSBROS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakKIRLOSBROS.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateKIRLOSBROS.NS shows balanced valuation metrics.
Growth Score
ExcellentKIRLOSBROS.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKIRLOSBROS.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateKIRLOSBROS.NS maintains healthy but balanced margins.
Key Financial Metrics
Is KIRLOSBROS.NS Expensive or Cheap?
P/E Ratio
KIRLOSBROS.NS trades at 36.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KIRLOSBROS.NS's PEG of -3.62 indicates potential undervaluation.
Price to Book
The market values Kirloskar Brothers Limited at 5.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.51 times EBITDA. This signals the market has high growth expectations.
How Well Does KIRLOSBROS.NS Make Money?
Net Profit Margin
For every $100 in sales, Kirloskar Brothers Limited keeps $8.23 as profit after all expenses.
Operating Margin
Core operations generate 15.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.85 in profit for every $100 of shareholder equity.
ROA
Kirloskar Brothers Limited generates $8.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kirloskar Brothers Limited generates limited operating cash flow of $1.06B, signaling weaker underlying cash strength.
Free Cash Flow
Kirloskar Brothers Limited generates weak or negative free cash flow of $464.96M, restricting financial flexibility.
FCF Per Share
Each share generates $5.86 in free cash annually.
FCF Yield
KIRLOSBROS.NS converts 0.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How KIRLOSBROS.NS Stacks Against Its Sector Peers
| Metric | KIRLOSBROS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.38 | 25.99 | Worse (Expensive) |
| ROE | 16.85% | 1259.00% | Weak |
| Net Margin | 8.23% | -34891.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.83 | 9.71 | Neutral |
| ROA | 8.48% | -1482943.00% (disorted) | Weak |
KIRLOSBROS.NS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kirloskar Brothers Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
477.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
35.32%
Industry Style: Cyclical, Value, Infrastructure
High Growth