Kirloskar Industries Limited
Kirloskar Industries Limited Fundamental Analysis
Kirloskar Industries Limited (KIRLOSIND.NS) shows weak financial fundamentals with a PE ratio of 17.28, profit margin of 2.37%, and ROE of 2.16%. The company generates $68.5B in annual revenue with moderate year-over-year growth of 4.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.3/100 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 KIRLOSIND.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakKIRLOSIND.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKIRLOSIND.NS trades at attractive valuation levels.
Growth Score
WeakKIRLOSIND.NS faces weak or negative growth trends.
Financial Health Score
ExcellentKIRLOSIND.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateKIRLOSIND.NS maintains healthy but balanced margins.
Key Financial Metrics
Is KIRLOSIND.NS Expensive or Cheap?
P/E Ratio
KIRLOSIND.NS trades at 17.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KIRLOSIND.NS's PEG of -7.39 indicates potential undervaluation.
Price to Book
The market values Kirloskar Industries Limited at 0.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.75 times EBITDA. This is generally considered low.
How Well Does KIRLOSIND.NS Make Money?
Net Profit Margin
For every $100 in sales, Kirloskar Industries Limited keeps $2.37 as profit after all expenses.
Operating Margin
Core operations generate 8.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.16 in profit for every $100 of shareholder equity.
ROA
Kirloskar Industries Limited generates $1.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kirloskar Industries Limited generates limited operating cash flow of $2.16B, signaling weaker underlying cash strength.
Free Cash Flow
Kirloskar Industries Limited generates weak or negative free cash flow of $570.17M, restricting financial flexibility.
FCF Per Share
Each share generates $54.25 in free cash annually.
FCF Yield
KIRLOSIND.NS converts 2.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How KIRLOSIND.NS Stacks Against Its Sector Peers
| Metric | KIRLOSIND.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.28 | 25.81 | Better (Cheaper) |
| ROE | 2.16% | 1255.00% | Weak |
| Net Margin | 2.37% | -46754.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 10.04 | Strong Liquidity |
| ROA | 1.32% | -1492804.00% (disorted) | Weak |
KIRLOSIND.NS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kirloskar Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
234.04%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
48.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
207.06%
Industry Style: Cyclical, Value, Infrastructure
High Growth