Check Before You Invest : Krishanveer Forge Ltd

Snapshot

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

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

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

Krishanveer Forge Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Krishanveer Forge Ltd undervalued or overvalued?

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

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

Krishanveer Forge 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 Krishanveer Forge Ltd?

Krishanveer Forge Ltd revenue growth is -1% for FY-2025, which is below its 5-year CAGR of 10.23%, indicating slower growth.

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

Krishanveer Forge Ltd Return on capital employed is 20.04% for FY-2025, which is above its 5-year historical median of 16.62%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Krishanveer Forge Ltd?

Krishanveer Forge Ltd Return on Asset is 10.17%, which is above its 5-year historical median of 7.9%, indicating improved asset utilization efficiency.

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

Krishanveer Forge Ltd Return on equity is 13.83% for FY-2025, which is above its 5-year historical median of 11.84%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Krishanveer Forge Ltd?

Krishanveer Forge Ltd Cash conversion cycle is 84 days, below its 5-year historical median of 94 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.49	1.49
ROE	13.83	11.84
ROCE	20.04	16.62
Cash Conversion Cycle	84 days	94 days

Q.6 Gross Profit margin of Krishanveer Forge Ltd?

Krishanveer Forge Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is above its 5-year median of 10.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Krishanveer Forge Ltd?

Krishanveer Forge Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.1% for FY-2025, which is in line with its 5-year median of 9.82% indicating stable margins.

Q.8 Net Profit Margin of Krishanveer Forge Ltd?

Krishanveer Forge Ltd Net Profit Margin is 6.81% for FY-2025, is above with its 5-year median of 5.59%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.1	10.3
Operating Profit Margin	10.1	9.82
Net Profit Margin	6.81	5.59

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

Krishanveer Forge Ltd Debt-to-Equity ratio is -0.08, which is lower with the industry average of 0.49, indicating lower debt levels in the industry.

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

Krishanveer Forge Ltd Debt to cash flow from operations is -0.64, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 72.47% of the Krishanveer Forge Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Krishanveer Forge Ltd revenue CAGR is 10.23%, 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	-1	14.1
Gross Profit Growth	28.6	25.5
Operating Profit Growth	14.3	18.7
Net Profit Growth	50	26

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.49	0.92
ROE	13.83	15.17
ROCE	20.04	14.66
Cash Conversion Cycle (days)	84.16	112

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 18.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	18.8%	24%	45.7%	59.9%

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

The current P/E is similar 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	19.49	20.03	33.04
Price to Book	3.04	2.01	3.77
Price to Sales	1.62	1.12	1.87
EV to EBITDA	11.34	10.46	16.81

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