Check Before You Invest : KVS Castings Ltd

BSE: 544554 NSE: ISIN: INE163701019

| Sector: Automobiles | Industry: Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does KVS Castings Ltd belong to?

KVS Castings Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.

Q.2 Is KVS Castings Ltd a good quality company?

KVS Castings Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is KVS Castings Ltd undervalued or overvalued?

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

Q.4 Is KVS Castings Ltd a good buy now?

KVS Castings 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 KVS Castings Ltd?

KVS Castings Ltd revenue growth is -7.5% for FY-2025, which is below its 3-year CAGR of 2.65%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of KVS Castings Ltd?

KVS Castings Ltd Return on capital employed is 27.91% for FY-2025, which is below its 3-year historical median of 31.35%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of KVS Castings Ltd?

KVS Castings Ltd Return on Asset is 16.75%, which is in line with its 3-year historical median of 16.76%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of KVS Castings Ltd?

KVS Castings Ltd Return on equity is 21.98% for FY-2025, which is below its 3-year historical median of 26.24%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of KVS Castings Ltd?

KVS Castings Ltd Cash conversion cycle is 69 days, above its 3-year historical median of 65 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.27	1.71
ROE	21.98	26.24
ROCE	27.91	31.35
Cash Conversion Cycle	69 days	65 days

Q.6 Gross Profit margin of KVS Castings Ltd?

KVS Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.4% for FY-2025, which is above its 3-year median of 16%, indicating increasing margins.

Q.7 Operating Profit Margin of KVS Castings Ltd?

KVS Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.91% for FY-2025, which is above its 3-year median of 15.61% indicating increasing margins.

Q.8 Net Profit Margin of KVS Castings Ltd?

KVS Castings Ltd Net Profit Margin is 13.22% for FY-2025, is above with its 3-year median of 11.06%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	19.4	16
Operating Profit Margin	18.91	15.61
Net Profit Margin	13.22	11.06

Q.9 Debt to Equity ratio of KVS Castings Ltd?

KVS Castings Ltd Debt-to-Equity ratio is 0.11, which is lower with the industry average of 0.36, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of KVS Castings Ltd?

KVS Castings Ltd Debt to cash flow from operations is 0.35, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KVS Castings Ltd?

Promoters hold 70.96% of the KVS Castings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KVS Castings Ltd vs industry peers?

KVS Castings Ltd revenue CAGR is 2.65%, compared to the industry median CAGR of 9.79%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-7.5	9.8
Gross Profit Growth	11.1	32.3
Operating Profit Growth	12.5	28.4
Net Profit Growth	16.7	54.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.27	1.29
ROE	21.98	12.35
ROCE	27.91	17.47
Cash Conversion Cycle (days)	68.87	79

Valuation & price assessment

Q.1 Stock return of KVS Castings Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of KVS Castings Ltd vs historical?

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	16.56	16.65	22.26
Price to Book	1.76	1.83	2.78
Price to Sales	2.19	2.20	1.97
EV to EBITDA	11.42	11.48	12.18

Check more companies

1. AIA Engineering

2. PTC Industries

3. Steelcast

4. Nelcast

5. Alicon Castalloy

6. Synergy Green Inds.

7. Uni Abex Alloy Prod

8. Invts & Precisn Cast

9. Magna ElectroCasting

10. Neetu Yoshi

Check trending companies

1. Titagarh Rail Systems Ltd.

2. Info Edge (India) Ltd.

3. Tata Motors Passenger Vehicles Ltd.

4. Bajaj Finserv Ltd.

5. Ultratech Cement Ltd.