Kennametal India Ltd.

NSE: KENNAMET  SECTOR: Engineering

1064.45
-12.65 (-1.17%)

Price Summary

Today's High

₹ 1075

Today's Low

₹ 1033.35

52 Week High

₹ 1240

52 Week Low

₹ 650

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

Company Essentials

Market Cap

2339.4737568 Cr.

Enterprise Value

2310.9737568 Cr.

No. of Shares

2.197824 Cr.

P/E

97.89

P/B

4.07

Face Value

₹ 10

Div. Yield

0%

Book Value (TTM)

₹  261.567

CASH

41.5 Cr.

DEBT

13 Cr.

Promoter Holding

75%

EPS (TTM)

₹  10.8744

Sales Growth

-30.8015967202503%

ROE

6.08329433785681 %

ROCE

7.60003662668254 %

Profit Growth

5.06704084814468 %

* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

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Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

Sales Growth (in Cr.)

1 Year-30.8%
3 Year-0.54%
5 Year2.38%

Profit Growth (in Cr.)

1 Year-62.34%
3 Year10.07%
5 Year-0.62%

ROE%

1 Year6.08%
3 Year12.23%
5 Year9.72%

ROCE %

1 Year7.6%
3 Year16.79%
5 Year13.31%

Debt/Equity

0.0236

Price to Cash Flow

84.15

Interest Cover Ratio

37.7272727272727

CFO/PAT (5 Yr. Avg.)

1.40746532498413

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Dec 2020 75 0
Sep 2020 75 0
Jun 2020 75 0
Mar 2020 75 0
Dec 2019 75 0
* Figures given above are % of equity capital

 Strengths

  • Company is virtually debt free.
  • Company has a healthy Interest coverage ratio of 37.7272727272727.
  • Company has a healthy liquidity position with current ratio of 2.59138972809668.
  • The company has a high promoter holding of 75%.
  • The company has a strong degree of Operating leverage, Average Operating leverage stands at 4.20382012849161.

 Limitations

  • The company has shown a poor revenue growth of -0.537257808398905% for the Past 3 years.
  • The company is trading at a high PE of 97.89.
  • The company is trading at a high EV/EBITDA of 32.3666.

Quarterly Result (All Figures in Cr.)

PARTICULARS Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
Net Sales 189.7 166.5 87.3 178.3 193.3
Total Expenditure 163.9 148.2 100.9 155.3 168.6
Operating Profit 25.8 18.3 -13.6 23 24.7
Other Income 2.5 3.3 10.2 2.8 2.7
Interest 0.3 0.2 0.3 0.2 0.1
Depreciation 8.3 8.9 9.5 9.6 9.4
Exceptional Items -2.2 -0.2 -1.7 -1 0
Profit Before Tax 17.5 12.3 -14.9 15 17.9
Tax 5.2 3.8 -6.4 4.1 4.9
Profit After Tax 12.3 8.5 -8.5 10.9 13
Adjusted EPS (Rs) 0.56 0.39 -0.39 0.5 0.59

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020
Net Sales 570.29 651.85 793.1 926.9 641.4
Total Expenditure 524.37 593.59 692.7 790.8 580.5
Operating Profit 45.92 58.26 100.4 136.1 60.9
Other Income 8.9 5.86 8.4 14 19.2
Interest 0 0 0 0.5 1.1
Depreciation 24.11 28.26 28.1 28 34.2
Exceptional Items 0 -5.5 -7.7 0 -4.4
Profit Before Tax 30.71 30.36 73 121.6 40.4
Tax 9.97 5.99 20.7 35.3 7.9
Net Profit 20.74 24.37 52.3 86.3 32.5
Adjusted EPS (Rs.) 9.44 11.09 23.77 39.23 14.77

Balance Sheet (All Figures are in Crores.)

Particulars Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020
Equity and Liabilities
Share Capital 21.98 21.98 22 22 22
Total Reserves 355.1 371.93 416.8 496.9 528.2
Borrowings 0 0 0 0 0
Other N/C liabilities 211.38 210.97 233.4 248.4 256.4
Current liabilities 117.6 138.69 193.6 228.3 132.4
Total Liabilities 706.06 743.57 865.8 995.6 939
Assets
Net Block 106.72 146.37 154 183.5 246.6
Capital WIP 16.4 2.78 21.1 67.2 32.1
Investments 0.5 0.51 0.5 0 2
Loans & Advances 258.66 259.75 275.6 297 311.5
Other N/C Assets 0.11 0.12 1.5 2.9 3.7
Current Assets 323.67 334.04 413.1 445 343.1
Total Assets 706.06 743.57 865.8 995.6 939
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020
Profit Before Tax 30.71 35.86 80.7 121.6 44.8
Adjustment 27.63 31.18 31.8 26.2 28.3
Working Capital Changes -20.59 16.38 -46.9 -26.6 -30
Tax Paid -20.31 -6.26 -2.7 -37.3 -15.3
Operating Cash Flow 17.44 77.16 62.9 83.9 27.8
Investing Cash Flow -42.36 -44.59 -55.2 -138.8 -31.9
Financing Cash Flow -5.06 -5.3 -5.3 4.1 1.8
Net Cash Flow -29.98 27.27 2.4 -50.8 -2.3

Corporate Actions

Ratings & Research Reports

Company Presentations

Company News

Kennametal India Stock Price Analysis and Quick Research Report. Is Kennametal India an attractive stock to invest in?

 

Stock investing requires careful analysis of financial data to find out the company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement. This can be time-consuming and cumbersome. An easier way to find out about a company's performance is to look at its financial ratios, which can help to make sense of the overwhelming amount of information that can be found in a company's financial statements.

Here are the few indispensable tools that should be a part of every investor’s research process.

  • PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Kennametal India has a PE ratio of 97.8858603693077 which is high and comparatively overvalued .

  • Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Kennametal India has ROA of 3.35986767290396 % which is a bad sign for future performance. (higher values are always desirable)

  • Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Kennametal India has a Current ratio of 2.59138972809668 .

  • Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Kennametal India has a ROE of 6.08329433785681 % .(higher is better)

  • Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. Kennametal India has a D/E ratio of 0.0236 which means that the company has low proportion of debt in its capital.

  • Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. Kennametal India has an Inventory turnover ratio of 3.19900249376559 which shows that the management is inefficient in relation to its Inventory and working capital management.

  • Sales growth: - Kennametal India has reported revenue growth of -30.8015967202503 % which is poor in relation to its growth and performance.

  • Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Kennametal India for the current financial year is 9.49485500467727 %.

  • Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Kennametal India is Rs 0 and the yield is 0 %.

 

Brief about Kennametal India

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