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Check Before You Invest : Kennametal India Ltd

BSE: 505890 NSE: KENNAMET ISIN: INE717A01029
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Kennametal India Ltd belong to?
Kennametal India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Kennametal India Ltd a good quality company?
Kennametal India Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Kennametal India Ltd undervalued or overvalued?
Kennametal India Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kennametal India Ltd a good buy now?
Kennametal India 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 Kennametal India Ltd?
Kennametal India Ltd revenue growth is 6.4% for FY-2025 , which is below its 5 year CAGR of 12.8% , indicating slower growth.
Q.2 Gross Profit margin of Kennametal India Ltd?
Kennametal India Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.1% for FY-2025 , which is in line with its 5 year median of 16.1% , indicating stable margins.
Q.3 Operating Profit Margin of Kennametal India Ltd?
Kennametal India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.51% for FY-2025 , which is below its 5 year median of 14.79% indicating decreasing margins.
Q.4 Net Profit Margin of Kennametal India Ltd?
Kennametal India Ltd Net Profit Margin is 8.79% for FY-2025 , is in line with with its 5 year median of 8.79%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 16.1 16.1
Operating Profit Margin 14.51 14.79
Net Profit Margin 8.79 8.79
Q.5 Return on Asset of Kennametal India Ltd?
Kennametal India Ltd Return on Asset is 8.39%, which is in line with its 5 year historical median of 8.39%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kennametal India Ltd?
Kennametal India Ltd Return on equity is 13.91% for FY-2025 , which is in line with its historical median of 13.91%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kennametal India Ltd?
Kennametal India Ltd Return on capital employed is 18.99% 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 Kennametal India Ltd?
Kennametal India Ltd Cash conversion cycle is 107 days, above its historical median of 97 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.94 0.91
ROE 13.91 13.91
ROCE 18.99 18.99
Cash Conversion Cycle 107 days 97 days
Q.9 Debt to Equity ratio of Kennametal India Ltd?
Kennametal India Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.17 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Kennametal India Ltd?
Kennametal India Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kennametal India Ltd?
Promoters hold 75.00% of the Kennametal India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kennametal India Ltd vs industry peers?
Kennametal India Ltd revenue CAGR is 12.78% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,170.3 101.1
Gross Profit 188.4 9.6
Operating Profit 170 9
Net Profit 103 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.94 0.89
ROE 13.91 11.68
ROCE 18.99 14.29
Cash Conversion Cycle (days) 106.58 101

Valuation & price assessment

Q.1 Stock return of Kennametal India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14% 18.3% 3.7% 11.8%
Q.3 Valuation ratios of Kennametal India Ltd vs historical?
The current P/E is lower 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 49.55 54.54 46.24
Price to Book 6.89 3.23 2.79
Price to Sales 4.45 2.76 2.66
EV to EBITDA 26.74 21.78 15.72

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