Check Before You Invest : Kinetic Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Kinetic Engineering Ltd belong to?

Kinetic Engineering Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Kinetic Engineering Ltd a good quality company?

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

Q.3 Is Kinetic Engineering Ltd undervalued or overvalued?

Kinetic Engineering Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Kinetic Engineering Ltd a good buy now?

Kinetic Engineering Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kinetic Engineering Ltd?

Kinetic Engineering Ltd revenue growth is -1% for FY-2025, which is below its 5-year CAGR of 4.13%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Return on capital employed is 8.87% for FY-2025, which is below its 5-year historical median of 9.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Return on Asset is 3.45%, which is above its 5-year historical median of 2.04%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Return on equity is 12.67% for FY-2025, which is in line with its 5-year historical median of 12.67%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Cash conversion cycle is 115 days, above its 5-year historical median of 67 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.73	0.82
ROE	12.67	12.67
ROCE	8.87	9.95
Cash Conversion Cycle	115 days	67 days

Q.6 Gross Profit margin of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is above its 5-year median of 7.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.45% for FY-2025, which is below its 5-year median of 5.35% indicating decreasing margins.

Q.8 Net Profit Margin of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Net Profit Margin is 4.75% for FY-2025, is above with its 5-year median of 2.31%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.3	7.1
Operating Profit Margin	3.45	5.35
Net Profit Margin	4.75	2.31

Q.9 Debt to Equity ratio of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Debt-to-Equity ratio is 0.92, which is above with the industry average of 0.46, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kinetic Engineering Ltd?

Kinetic Engineering Ltd Debt to cash flow from operations is -2.79, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kinetic Engineering Ltd?

Promoters hold 65.04% of the Kinetic Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kinetic Engineering Ltd vs industry peers?

Kinetic Engineering Ltd revenue CAGR is 4.13%, compared to the industry median CAGR of 12.41%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-1	12.4
Gross Profit Growth	8.3	16.2
Operating Profit Growth	-37.5	14.7
Net Profit Growth	40	20.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.73	1.23
ROE	12.67	12.01
ROCE	8.87	13.5
Cash Conversion Cycle (days)	115.36	47

Valuation & price assessment

Q.1 Stock return of Kinetic Engineering Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	12%	43.7%	38.3%	40.4%

Q.3 Valuation ratios of Kinetic Engineering 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	251.75	81.70	28.80
Price to Book	5.8	6.13	2.99
Price to Sales	4.45	2.15	1.35
EV to EBITDA	50.82	21.33	11.86

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