Kennametal India Ltd - Stock Valuation and Financial Performance

BSE: 505890 | NSE: KENNAMET | Engineering | Small Cap

Kennametal India Share Price

2,379.15 -22.55 -0.94%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Kennametal India

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Kennametal India stock performance -

mw4me loader
P/E Ratio (SA):
68.53
Market Cap:
5,229 Cr.
52-wk low:
2,027
52-wk high:
3,111.8

Is Kennametal India Ltd an attractive stock to invest in?

1. Is Kennametal India Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Kennametal India Ltd is a average quality company.

2. Is Kennametal India Ltd undervalued or overvalued?

The key valuation ratios of Kennametal India Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Kennametal India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Kennametal India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Kennametal India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Kennametal India Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Jun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23TTM
ROCE % 7.4%8.4%5.8%7.3%13.8%17.9%6.2%11.7%18.7%13.1%-
Value Creation
Index
-0.5-0.4-0.6-0.50.00.3-0.6-0.20.30.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5455705706527939276418119911,0771,064
Sales YoY Gr.-4.6%0%14.3%21.7%16.9%-30.8%26.5%22.1%8.7%-
Adj EPS 1113.39.812.726.239.31530.15239.834.7
YoY Gr.-20.6%-26.1%29.8%105.9%49.9%-61.9%101.4%72.6%-23.4%-
BVPS (₹) 151.7164.5171.6179.1199.3235.7250260.3293.3312.5332.4
Adj Net
Profit
24.229.221.52857.686.332.966.211487.576
Cash Flow from Ops. 10.860.717.477.262.983.927.815549.1116-
Debt/CF from Ops. 000000.10.5000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.9%6.3%18.9%8.7%
Adj EPS 15.4%8.7%38.6%-23.4%
BVPS8.4%9.4%7.7%6.5%
Share Price 15.8% 17.3% 32.5% 13.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Jun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23TTM
Return on
Equity %
7.48.45.87.313.8186.211.818.713.110.8
Op. Profit
Mgn %
9.310.68.38.912.714.79.514.818.11413.6
Net Profit
Mgn %
4.45.13.84.37.39.35.18.211.58.17.2
Debt to
Equity
00000000000
Working Cap
Days
25826729226725225537428326226584
Cash Conv.
Cycle
81828370687212092879759

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 18.86%

Net Profit is growing at healthy rate in last 3 years 38.61%

Return on Equity has declined versus last 3 years average to 10.80%

Sales growth is not so good in last 4 quarters at 0.77%

Latest Financials - Kennametal India Ltd.

Standalone Consolidated
TTM EPS (₹) 34.7 53.3
TTM Sales (₹ Cr.) 1,064 1,021
BVPS (₹.) 332.4 307.9
Reserves (₹ Cr.) 709 655
P/BV 7.16 7.73
PE 68.53 44.65
From the Market
52 Week Low / High (₹) 2027.00 / 3111.80
All Time Low / High (₹) 32.50 / 3111.80
Market Cap (₹ Cr.) 5,229
Equity (₹ Cr.) 22
Face Value (₹) 10
Industry PE 32.8

Management X-Ray of Kennametal India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Kennametal India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSJun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23
Sales5455705706527939276418119911,077
Operating Expenses 494510524594693791581691812926
Manufacturing Costs46505061717958738992
Material Costs291298301344418494347433500600
Employee Cost 98102111122123130109122145149
Other Costs 59606367818867657886
Operating Profit 5160465810013661120179151
Operating Profit Margin (%) 9.3%10.5%8.1%8.9%12.7%14.7%9.5%14.8%18.1%14.0%
Other Income 669681419996
Interest 0000011000
Depreciation 27262428282834383639
Exceptional Items -1060-6-80-4-100
Profit Before Tax 20463130731224089153118
Tax 31310621358233930
Profit After Tax 173421245286336711488
PAT Margin (%) 3.1%5.9%3.6%3.7%6.6%9.3%5.1%8.2%11.5%8.1%
Adjusted EPS (₹)7.815.39.411.123.839.214.830.351.939.9
Dividend Payout Ratio (%)0%13%21%18%8%5%0%66%46%50%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSJun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23

Equity and Liabilities

Shareholders Fund 333362377394439519550573645687
Share Capital 22222222222222222222
Reserves 311340355372417497528551623665
Minority Interest0000000000
Debt000001013000
Long Term Debt0000000000
Short Term Debt000001013000
Trade Payables456271831061265710210375
Others Liabilities 227244258267321341317363385421
Total Liabilities 6066677067448669969371,0381,1331,183

Fixed Assets

Gross Block347358382175211251341356377462
Accumulated Depreciation23325727628576894131162187
Net Fixed Assets114101107146154184247225215275
CWIP 56163216732527734
Investments 00151102200
Inventories9694113107156203198205267244
Trade Receivables10811111911014314579113137142
Cash Equivalents 579566439544421156490
Others Assets226260284283297353338326373399
Total Assets 6066677067448669969371,0381,1331,183

Cash Flow

(All Figures are in Crores.)
PARTICULARSJun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23
Cash Flow From Operating Activity 1161177763842815549116
PBT 30403136811224590153118
Adjustment 28292831322628413642
Changes in Working Capital -2811-2116-47-27-3041-101-12
Tax Paid -8-20-20-6-3-37-15-18-39-32
Cash Flow From Investing Activity -8-17-42-45-55-139-32-24-62-45
Capex -8-17-37-50-60-109-61-26-65-47
Net Investments 00-10010011
Others 00-555-3129220
Cash Flow From Financing Activity 0-5-5-5-542-57-53-45
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 00000-1-1000
Dividend Paid 0-4-4-4-4-40-44-53-44
Others 0-1-1-1-193-130-1
Net Cash Flow 338-30272-51-273-6526
PARTICULARSJun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20Jun'21Jun'22Jun'23
Ratios
ROE (%)5.259.655.626.3212.5718.046.0811.8618.7413.16
ROCE (%)6.0313.358.317.8817.5325.247.615.7825.0217.65
Asset Turnover Ratio0.980.960.890.960.9910.660.820.910.93
PAT to CFO Conversion(x)0.651.790.813.211.210.980.852.310.431.32
Working Capital Days
Receivable Days61656960585764434647
Inventory Days595762586171114918787
Payable Days65658082838696677554

Kennametal India Ltd Stock News

Kennametal India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Kennametal India on 28-Mar-2024 16:01 is ₹2,379.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Kennametal India stood at ₹5,229.
The latest P/E ratio of Kennametal India as of 28-Mar-2024 16:01 is 68.53.
The latest P/B ratio of Kennametal India as of 28-Mar-2024 16:01 is 7.16.
The 52-week high of Kennametal India is ₹3,111.8 and the 52-week low is ₹2,027.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Kennametal India is ₹1,064 ( Cr.) .

About Kennametal India Ltd

Kennametal India was established in September 21, 1964, and was formerly known as Widia India Ltd. headquartered at Bangalore is the premiere global provider of metalworking solutions using tungsten carbide inserts.

Kennametal is a leading global supplier of tooling, engineered components and advanced materials that are consumed in production processes. It provides customers with a broad range of technologically advanced tools, tooling systems and technical services. The company's expert scientists and engineers apply highly complex powder metallurgy, materials science and mechanical engineering technologies to cemented tungsten carbides, high-speed steels, ceramics, industrial diamonds and other material compositions to produce products that have the optimum combination of resistance to heat, impact, corrosion, pressure and wear to excel in particular application.

On May 3, 2002 Kennametal Inc.entered into an arrangement with Milacron B V and Milacron Inc., for the acquisition, either directly or through its affiliates, of Milacron BV’s European operations in Germany, Netherlands, Spain, U.K, France and Italy upon obtaining certain statutory approvals and upon certain commercial reorganisation of companies in different countries (hereinafter referred to as the “Stock Purchase Agreement”). Pursuant to this arrangement, Kennametal was to acquire control of Milacron Metal Working Technologies Holding GmbH, a wholly owned subsidiary of Milacron B. V., which through its subsidiary companies, Widia GmbH and Meturit AG., had indirect control over Widia (India) Limited. As on May 3, 2002, Meturit AG, a wholly owned subsidiary of Widia GmbH, held 51% of the equity shares of the Company. Indirectly, Kennametal acquired from Milacron B. V. the majority of equity shares which resulted in change in control of the Company.

Today most of India’s leading manufacturing and industrial giants, from the private, public and government sectors, rely on Kennametal India’s tooling expertise to produce its products. Among others, these include automobile majors like GM, TVS, Tata Motors, and Yamaha, BHEL, Northern Railways, Ordinance and Armament factories, Inter Drill Asia, Escorts Mahle, Gabriel, Sterling Tools and SKF Bearings.

Kennametal’s portfolio of well-respected brand names and broad global presence enable it to help customers of all sizes in virtually every geography drive success at every stage of their value chain. Strategically aligned across its two core businesses -- Metalworking Solutions and Services Group (MSSG) and the Advanced Materials Solutions Group (AMSG) -- their products and services touch nearly every manufacturing process, and people around the globe can see and touch these results from the time they turn on the light switch in the morning, to the breakfast they eat or the vehicle they drive.

Product range of the company includes:

Kennametal has engineered innovative metal-cutting products and techniques for nearly 70 years using complex metallurgy and materials science in tungsten carbide, ceramics, high-speed steels and other materials. Many of these products serve as workhorses in their industries to this day. Newer, more advanced products are always under development to better serve needs. In fact, nearly half of Kennametal's revenue comes from products less than four years old.

  • Metalworking- Metalworking has been expertise for 70 years. Kennametal never stops inventing, designing, testing, and manufacturing the world's best tools. Energy, Mining & Construction.They work with mining companies worldwide to engineer bold new designs that utilize advanced technologies to increase the productivity of mining and wear products.
  • Advanced Materials- Kennametal specializes in solving unique wear problems by engineering and manufacturing customized protective systems made of the world's toughest materials
  • Wear Components- Kennametal is focused on delivering value to the customers for many different applications that offer long life, maintain tolerance through multiple-use cycles, and deliver superior overall performance.
  • Saw Mill- Kennametal knows how critical uptime and performance are in the sawmill industry. That's why they manufacture a wide range of Carbide and APF Superalloy cutting tips for the sawmill industry worldwide.
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