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Kennametal India Ltd. Stock Analysis

Small Cap
Evaluated by 494 users | BSE: 505890 | NSE: KENNAMET |
Engineering
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...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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 majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Jun'11Jun'12Jun'13Jun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20
Return on Capital Employed 29.5%22.99%4.83%7.44%8.39%6.02%7.26%13.82%17.91%6.16%
Value Creation Index 1.250.75-0.63-0.43-0.36-0.54-0.450.050.36NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 506562490545570570652793927641
Y-o-Y Gr. Rt.-11.1%-12.9%11.3%4.6%0%14.3%21.7%16.9%-30.8%
Adjusted EPS (Rs.) 39.9231.36.791113.2610.1212.7426.1939.2714.95
Y-o-Y Gr. Rt.--21.6%-78.3%62%20.6%-23.7%25.9%105.6%49.9%-61.9%
Book Value per Share (Rs.) 135.1137.16143.92151.68164.53171.56179.21199.32235.68250
Adjusted Net Profit 87.768.814.924.229.222.22857.686.332.9
Net Op. Cash Flow (Rs. Cr.) 70.968.732.810.860.717.477.262.983.927.8
Debt to Cash Flow from Ops 000000000.120.47
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Kennametal India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.7%2.4%-0.5%-30.8%
Adjusted EPS -10.3%2.4%5.5%-61.9%
Book Value per Share 7.18.711.76.1
Share Price 1.2% 2.3% 4.5% -18.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'11Jun'12Jun'13Jun'14Jun'15Jun'16Jun'17Jun'18Jun'19Jun'20
Return on Equity (%) 29.522.994.837.448.396.027.2613.8218.026.15
Operating Profit Margin (%) 27.3519.97.929.3210.68.438.9512.7314.739.53
Net Profit Margin (%) 17.3412.233.044.435.113.94.37.269.315.12
Debt to Equity 000000000.020.02
Working Capital Days 111136224258267293267252255375
Cash Conversion Cycle 576984818283696873120
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 75.00%
Institutions 13.79%
Non-Institutions 11.21%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kennametal India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Kennametal India Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Kennametal India Ltd.'s performance infers:

Kennametal India Ltd. earnings have grown by 2.4%, whereas share price has appreciated 2.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kennametal India Ltd. share prices over the last 10 years. Here is what we found out:

Kennametal India Ltd. share price has appreciated 4.7% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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