Check Before You Invest : Kalyani Forge Ltd

Q: 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: Is Kalyani Forge Ltd a good quality company?

Kalyani Forge Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Kalyani Forge Ltd undervalued or overvalued?

Kalyani Forge Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 39.3, Historic Median: 32.01. Price to Book, Current: 2.42, Historic Median: 1.40. Price to Sales, Current: 0.94, Historic Median: 0.60. EV to EBITDA, Current: 10.59, Historic Median: 8.42

Q: 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

Q: 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: 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: 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: Net Profit Margin of Kalyani Forge Ltd?

Kalyani Forge Ltd Net Profit Margin is 3.51% for FY-2025, is above its 5-year median of 1.27%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.2, Historic Median: 6. Operating Profit Margin (%), Current: 10.14, Historic Median: 7.05. Net Profit Margin (%), Current: 3.51, Historic Median: 1.27

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Kalyani Forge Ltd undervalued or overvalued?

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

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	39.3	32.01
Price to Book	2.42	1.40
Price to Sales	0.94	0.60
EV to EBITDA	10.59	8.42

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of Kalyani Forge Ltd?

Kalyani Forge Ltd Net Profit Margin is 3.51% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1.1	1.25
ROE (%)	9.69	3.08
ROCE (%)	12.26	5.95
Cash Conversion Cycle	119 days	118 days

C: How much debt does the business have and is it at a sustainable level?

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

Kalyani Forge Ltd Debt-to-Equity ratio is 0.80, which is above the industry average of 0.54, 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

D: Promoter shareholding and pledge status of Kalyani Forge Ltd?

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)

E: How does Kalyani Forge Ltd performance compare with that of its Peers?

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 10.29%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-0.1	10.3
Gross Profit Growth (%)	58.3	25.5
Operating Profit Growth (%)	71.4	18.7
Net Profit Growth (%)	60	27.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.1	0.92
ROE (%)	9.69	14.91
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 9.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	9.2%	24.5%	32.7%	-25.4%

Q.2 Valuation ratios of Kalyani Forge Ltd vs historical?

The current P/E ratio of 39.3 is higher than its historical median of 32.01, indicating that the stock is trading above its historical average valuation.

Q.3 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	39.3	32.01	33.04
Price to Book	2.42	1.40	3.77
Price to Sales	0.94	0.60	1.87
EV to EBITDA	10.59	8.42	16.91

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Check Before You Invest : Kalyani Forge Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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