Check Before You Invest : KP Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does KP Energy Ltd belong to?

KP Energy Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is KP Energy Ltd a good quality company?

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

Q.3 Is KP Energy Ltd undervalued or overvalued?

KP Energy Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is KP Energy Ltd a good buy now?

KP Energy 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 KP Energy Ltd?

KP Energy Ltd revenue growth is 97.8% for FY-2025, which is above its 5-year CAGR of 65.63%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of KP Energy Ltd?

KP Energy Ltd Return on capital employed is 37.15% for FY-2025, which is above its 5-year historical median of 35.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of KP Energy Ltd?

KP Energy Ltd Return on Asset is 12.64%, which is in line with its 5-year historical median of 12.34%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of KP Energy Ltd?

KP Energy Ltd Return on equity is 47.64% for FY-2025, which is above its 5-year historical median of 38.42%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of KP Energy Ltd?

KP Energy Ltd Cash conversion cycle is 54 days, in line with its 5-year historical median of 54 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.04	0.99
ROE	47.64	38.42
ROCE	37.15	35.24
Cash Conversion Cycle	54 days	54 days

Q.6 Gross Profit margin of KP Energy Ltd?

KP Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.6% for FY-2025, which is in line with its 5-year median of 17.6%, indicating stable margins.

Q.7 Operating Profit Margin of KP Energy Ltd?

KP Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.98% for FY-2025, which is in line with its 5-year median of 18.44% indicating stable margins.

Q.8 Net Profit Margin of KP Energy Ltd?

KP Energy Ltd Net Profit Margin is 12.13% for FY-2025, is above with its 5-year median of 10.45%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	17.6	17.6
Operating Profit Margin	18.98	18.44
Net Profit Margin	12.13	10.45

Q.9 Debt to Equity ratio of KP Energy Ltd?

KP Energy Ltd Debt-to-Equity ratio is 1.15, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of KP Energy Ltd?

KP Energy Ltd Debt to cash flow from operations is 2.03, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KP Energy Ltd?

Promoters hold 45.44% of the KP Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of KP Energy Ltd vs industry peers?

KP Energy Ltd revenue CAGR is 65.63%, compared to the industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	97.8	9.5
Gross Profit Growth	91.8	14.9
Operating Profit Growth	103.5	11.1
Net Profit Growth	89.8	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.04	0.68
ROE	47.64	8.34
ROCE	37.15	11.34
Cash Conversion Cycle (days)	53.95	57

Valuation & price assessment

Q.1 Stock return of KP Energy Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 54.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	54.9%	108.7%	84.9%	10.5%

Q.3 Valuation ratios of KP Energy 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	18.12	17.87	21.62
Price to Book	6.15	5.94	1.75
Price to Sales	2.13	1.97	1.50
EV to EBITDA	10.72	10.67	11.53

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