Check Before You Invest : Kalyani Forge Ltd

BSE: 513509 NSE: KALYANIFRG ISIN: INE314G01014

| Sector: Automobiles | Industry: Forgings

Snapshot

Q.1 Which industry/sub-sector does Kalyani Forge Ltd belong to?

Kalyani Forge Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.

Q.2 Is Kalyani Forge Ltd a good quality company?

Kalyani Forge Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Kalyani Forge Ltd undervalued or overvalued?

Kalyani Forge Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Kalyani Forge Ltd a good buy now?

Kalyani Forge Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kalyani Forge Ltd?

Kalyani Forge Ltd revenue growth is -0.1% for FY-2025, which is below its 5-year CAGR of 3.32%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kalyani Forge Ltd?

Kalyani Forge Ltd Return on capital employed is 12.26% for FY-2025, which is above its 5-year historical median of 5.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Kalyani Forge Ltd?

Kalyani Forge Ltd Return on Asset is 3.87%, which is above its 5-year historical median of 1.74%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kalyani Forge Ltd?

Kalyani Forge Ltd Return on equity is 9.69% for FY-2025, which is above its 5-year historical median of 3.08%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Kalyani Forge Ltd?

Kalyani Forge Ltd Cash conversion cycle is 119 days, in line with its 5-year historical median of 118 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.1	1.25
ROE	9.69	3.08
ROCE	12.26	5.95
Cash Conversion Cycle	119 days	118 days

Q.6 Gross Profit margin of Kalyani Forge Ltd?

Kalyani Forge Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.2% for FY-2025, which is above its 5-year median of 6%, indicating increasing margins.

Q.7 Operating Profit Margin of Kalyani Forge Ltd?

Kalyani Forge Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.14% for FY-2025, which is above its 5-year median of 7.05% indicating increasing margins.

Q.8 Net Profit Margin of Kalyani Forge Ltd?

Kalyani Forge Ltd Net Profit Margin is 3.51% for FY-2025, is above with its 5-year median of 1.27%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.2	6
Operating Profit Margin	10.14	7.05
Net Profit Margin	3.51	1.27

Q.9 Debt to Equity ratio of Kalyani Forge Ltd?

Kalyani Forge Ltd Debt-to-Equity ratio is 0.80, which is above with the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kalyani Forge Ltd?

Kalyani Forge Ltd Debt to cash flow from operations is 3.28, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kalyani Forge Ltd?

Promoters hold 58.76% of the Kalyani Forge Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kalyani Forge Ltd vs industry peers?

Kalyani Forge Ltd revenue CAGR is 3.32%, compared to the industry median CAGR of 14.05%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-0.1	14.1
Gross Profit Growth	58.3	25.5
Operating Profit Growth	71.4	18.7
Net Profit Growth	60	26

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.1	0.92
ROE	9.69	15.17
ROCE	12.26	14.66
Cash Conversion Cycle (days)	119.24	112

Valuation & price assessment

Q.1 Stock return of Kalyani Forge Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	8.2%	26.2%	34.1%	-10.3%

Q.3 Valuation ratios of Kalyani Forge Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	37.95	32.17	33.04
Price to Book	2.34	1.38	3.77
Price to Sales	0.91	0.59	1.87
EV to EBITDA	10.33	8.22	16.81

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