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Check Before You Invest : Kirloskar Brothers Ltd

BSE: 500241 NSE: KIRLOSBROS ISIN: INE732A01036
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Compressors / Pumps

Snapshot

Q.1 Which industry/sub-sector does Kirloskar Brothers Ltd belong to?
Kirloskar Brothers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.
Q.2 Is Kirloskar Brothers Ltd a good quality company?
Kirloskar Brothers Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Kirloskar Brothers Ltd undervalued or overvalued?
Kirloskar Brothers Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kirloskar Brothers Ltd a good buy now?
Kirloskar Brothers Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd revenue growth is 6.7% for FY-2025 , which is in line with its 5 year CAGR of 6.7% , indicating stable growth.
Q.2 Gross Profit margin of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025 , which is above its 5 year median of 10.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.38% for FY-2025 , which is above its 5 year median of 9.67% indicating increasing margins.
Q.4 Net Profit Margin of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Net Profit Margin is 9.03% for FY-2025 , is above with its 5 year median of 6.01%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.4 10.3
Operating Profit Margin 12.38 9.67
Net Profit Margin 9.03 6.01
Q.5 Return on Asset of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Return on Asset is 10.13%, which is above its 5 year historical median of 6.56%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Return on equity is 16.83% for FY-2025 , which is above its historical median of 12.84%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Return on capital employed is 22.28% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Cash conversion cycle is 39 days, above its historical median of 38 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.14 1.11
ROE 16.83 12.84
ROCE 22.28 16.21
Cash Conversion Cycle 39 days 38 days
Q.9 Debt to Equity ratio of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Debt-to-Equity ratio is 0.01 , which is lower with the industry average of 0.07 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Kirloskar Brothers Ltd?
Kirloskar Brothers Ltd Debt to cash flow from operations is 0.04 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kirloskar Brothers Ltd?
Promoters hold 65.95% of the Kirloskar Brothers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kirloskar Brothers Ltd vs industry peers?
Kirloskar Brothers Ltd revenue CAGR is 6.71% , compared to the industry median CAGR of 14.24% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,901.4 1,124.1
Gross Profit 388.7 125
Operating Profit 359 162
Net Profit 262 61
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.14 1
ROE 16.83 15
ROCE 22.28 19.99
Cash Conversion Cycle (days) 38.96 92

Valuation & price assessment

Q.1 Stock return of Kirloskar Brothers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 29.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 29.5% 51.3% 59.6% 3.3%
Q.3 Valuation ratios of Kirloskar Brothers Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 54.8 16.67 38.00
Price to Book 7.85 1.05 5.26
Price to Sales 4.92 0.54 3.25
EV to EBITDA 32.34 6.33 22.07

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