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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500243 | NSE: KIRLOSIND

Kirloskar Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:16 pm

Market Cap 5,497 Cr.
Current Price 5,291
High / Low6,699/2,858
Stock P/E27.1
Book Value 5,003
Dividend Yield0.25 %
ROCE10.7 %
ROE5.41 %
Face Value 10.0
PEG Ratio1.89

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Kirloskar Industries Ltd

Competitors of Kirloskar Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Intrux Ltd 181 Cr. 528647/22121.4 1803.22 %17.0 %12.3 % 10.0
Carnation Industries Ltd 2.72 Cr. 7.8711.6/5.80 8.390.00 %%% 10.0
Captain Technocast Ltd 331 Cr. 324324/96.289.4 23.30.00 %19.4 %16.9 % 10.0
Nelcast Ltd 1,080 Cr. 124194/11627.7 59.70.32 %10.1 %8.05 % 2.00
Kirloskar Industries Ltd 5,497 Cr. 5,2916,699/2,85827.1 5,0030.25 %10.7 %5.41 % 10.0
Industry Average7,172.78 Cr1,199.2633.57644.250.55%19.43%14.17%7.00

All Competitor Stocks of Kirloskar Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales7518249859361,0371,4961,7861,6061,5741,5081,5781,5541,729
Expenses5606167778019321,3241,5621,3641,3521,3001,3151,3251,488
Operating Profit191209208135105172224242222209263228240
OPM %25%25%21%14%10%12%13%15%14%14%17%15%14%
Other Income7877161725101710-2514-19
Interest6656142125252630303032
Depreciation21222223284142444947586473
Profit before tax17118918711379127182183164142150148116
Tax %22%25%28%25%156%19%28%28%43%34%39%29%39%
Net Profit13414113585-4410313113393949110571
EPS in Rs69.5274.9177.9945.780.1249.4270.4164.1844.3941.1346.0043.4262.92

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,2391,3681,1191,1371,8262,2221,9162,0803,8106,4936,368
Expenses1,1271,2229709681,6741,9621,6501,5983,1255,6055,428
Operating Profit112147148170152260265482685888940
OPM %9%11%13%15%8%12%14%23%18%14%15%
Other Income51525650221421043-20
Interest23302414131819273197122
Depreciation375145475157607995176242
Profit before tax10311713615991188200378568658556
Tax %25%27%26%25%25%30%25%18%44%30%35%
Net Profit788610011968132151311316460361
EPS in Rs60.0863.5074.4677.6651.1086.6098.77168.71197.95226.94192.98
Dividend Payout %7%32%27%26%41%24%10%6%5%5%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)10.26%16.28%19.00%-42.86%94.12%14.39%105.96%1.61%45.57%-21.52%
Change in YoY Net Profit Growth (%)0.00%6.02%2.72%-61.86%136.97%-79.72%91.57%-104.35%43.96%-67.09%

Kirloskar Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:18%
5 Years:24%
3 Years:45%
TTM:-1%
Compounded Profit Growth
10 Years:15%
5 Years:21%
3 Years:11%
TTM:-6%
Stock Price CAGR
10 Years:26%
5 Years:52%
3 Years:48%
1 Year:72%
Return on Equity
10 Years:7%
5 Years:8%
3 Years:7%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:19 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital1010101010101010101010
Reserves7137507998751,7791,3561,0231,7362,3193,2434,957
Borrowings19013310897881383233051,2169791,241
Other Liabilities5925895155978299389541,1453,2413,3013,554
Total Liabilities1,5041,4821,4321,5782,7062,4412,3103,1966,7867,5349,761
Fixed Assets5535485565875996508971,0572,7803,1073,259
CWIP23318197662144243418423768
Investments4234225115051,4239335411,0681,1901,5753,392
Other Assets5054803574676087967288282,3982,4292,342
Total Assets1,5041,4821,4321,5782,7062,4412,3103,1966,7867,5349,761

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 8315610488107112185256317760575
Cash from Investing Activity -69-566-51-31-108-258-194-211-369-600
Cash from Financing Activity -9-101-113-28-87-4108-56-56-397-4
Net Cash Flow6-1-49-11035650-5-29

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-78.0014.0040.0073.0064.00122.00-58.00177.00684.00-91.00939.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days5647466359625663784652
Inventory Days7452577664667794138111108
Days Payable114918410210511612212214910196
Cash Conversion Cycle178193717121135665565
Working Capital Days13-6264517403834724744
ROCE %13%14%14%6%10%12%19%15%13%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.84%72.61%72.58%72.43%72.38%72.37%71.81%71.80%71.77%71.77%71.52%71.44%
FIIs0.37%0.42%0.40%0.39%0.62%0.58%0.64%0.57%0.69%0.73%0.63%0.71%
DIIs4.13%4.12%4.12%4.11%3.85%3.46%2.14%1.94%1.89%1.89%1.88%1.94%
Public22.66%22.85%22.91%23.08%23.15%23.61%25.39%25.67%25.64%25.61%25.97%25.90%
No. of Shareholders18,82018,70018,37818,15017,38717,25617,08116,89716,94317,28416,84618,894

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
LIC MF Infrastructure Fund1,3030.180.781,3032024-10-130%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)193.67228.49198.68168.7098.77
Diluted EPS (Rs.)185.93223.23193.77163.9998.68
Cash EPS (Rs.)607.02643.10420.92402.46217.39
Book Value[Excl.RevalReserv]/Share (Rs.)6785.744982.624156.712301.621425.76
Book Value[Incl.RevalReserv]/Share (Rs.)6785.744982.624156.712301.621425.76
Revenue From Operations / Share (Rs.)6413.286544.553867.662116.011942.31
PBDIT / Share (Rs.)990.53941.98710.53498.28287.30
PBIT / Share (Rs.)746.78764.00612.90416.57225.04
PBT / Share (Rs.)559.93665.81581.10389.01205.88
Net Profit / Share (Rs.)363.26465.11323.29320.75155.13
NP After MI And SOA / Share (Rs.)192.93227.03197.96168.6898.75
PBDIT Margin (%)15.4414.3918.3723.5414.79
PBIT Margin (%)11.6411.6715.8419.6811.58
PBT Margin (%)8.7310.1715.0218.3810.59
Net Profit Margin (%)5.667.108.3515.157.98
NP After MI And SOA Margin (%)3.003.465.117.975.08
Return on Networth / Equity (%)3.947.308.319.389.28
Return on Capital Employeed (%)10.0914.0613.6716.9514.20
Return On Assets (%)1.962.972.875.124.15
Long Term Debt / Equity (X)0.000.000.010.010.01
Total Debt / Equity (X)0.250.310.490.170.31
Asset Turnover Ratio (%)0.730.020.030.010.03
Current Ratio (X)2.271.741.422.211.46
Quick Ratio (X)1.841.220.991.861.16
Inventory Turnover Ratio (X)3.230.000.000.000.00
Dividend Payout Ratio (NP) (%)0.004.375.010.0010.12
Dividend Payout Ratio (CP) (%)0.002.453.350.006.21
Earning Retention Ratio (%)0.0095.6394.990.0089.88
Cash Earning Retention Ratio (%)0.0097.5596.650.0093.79
Interest Coverage Ratio (X)8.059.5922.3418.0815.00
Interest Coverage Ratio (Post Tax) (X)4.475.7411.1712.649.10
Enterprise Value (Cr.)7095.095031.784066.051933.841062.48
EV / Net Operating Revenue (X)1.110.771.070.940.56
EV / EBITDA (X)7.215.415.854.003.81
MarketCap / Net Operating Revenue (X)0.640.370.400.580.22
Retention Ratios (%)0.0095.6294.980.0089.87
Price / BV (X)0.840.780.650.690.41
Price / Net Operating Revenue (X)0.640.370.400.580.22
EarningsYield0.040.090.120.130.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kirloskar Industries Ltd as of October 15, 2024 is: ₹7,353.29

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 15, 2024, Kirloskar Industries Ltd is Undervalued by 38.98% compared to the current share price ₹5,291.00

Intrinsic Value of Kirloskar Industries Ltd as of October 15, 2024 is: ₹8,407.35

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 15, 2024, Kirloskar Industries Ltd is Undervalued by 58.90% compared to the current share price ₹5,291.00

Last 5 Year EPS CAGR: 14.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,777.27 cr) compared to borrowings (438.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.27 cr) and profit (286.73 cr) over the years.
  1. The stock has a low average ROCE of 11.55%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 33.64, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 31.09, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kirloskar Industries Ltd:
    1. Net Profit Margin: 5.66%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.09% (Industry Average ROCE: 17.49%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 3.94% (Industry Average ROE: 12.76%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.47
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.84
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 27.1 (Industry average Stock P/E: 30.21)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Kirloskar Industries Ltd. is a Public Limited Listed company incorporated on 13/06/1978 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L70100PN1978PLC088972 and registration number is 088972. Currently company belongs to the Industry of Engines. Company’s Total Operating Revenue is Rs. 72.60 Cr. and Equity Capital is Rs. 9.78 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Castings/FoundryOffice No. 801, 8th Floor, Cello Platina, Pune Maharashtra 411005investorrelations@kirloskar.com
http://www.kil.net.in
Management
NamePosition Held
Mr. Atul KirloskarChairman
Mr. Mahesh ChhabriaManaging Director
Ms. Aditi ChirmuleExecutive Director
Mr. Anil AlawaniNon Independent Director
Mr. Vinesh Kumar JairathNon Independent Director
Mr. Tejas DeshpandeIndependent Director
Mr. D SivanandhanIndependent Director
Mr. Ashit ParekhIndependent Director
Mr. Satish JamdarIndependent Director
Mr. Vijay VarmaIndependent Director
Ms. Purvi ShethIndependent Director

FAQ

What is the latest fair value of Kirloskar Industries Ltd?

The latest fair value of Kirloskar Industries Ltd is ₹7353.29.

What is the Market Cap of Kirloskar Industries Ltd?

The Market Cap of Kirloskar Industries Ltd is 5,497 Cr..

What is the current Stock Price of Kirloskar Industries Ltd as on 15 October 2024?

The current stock price of Kirloskar Industries Ltd as on 15 October 2024 is ₹5,291.

What is the High / Low of Kirloskar Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kirloskar Industries Ltd stocks is 6,699/2,858.

What is the Stock P/E of Kirloskar Industries Ltd?

The Stock P/E of Kirloskar Industries Ltd is 27.1.

What is the Book Value of Kirloskar Industries Ltd?

The Book Value of Kirloskar Industries Ltd is 5,003.

What is the Dividend Yield of Kirloskar Industries Ltd?

The Dividend Yield of Kirloskar Industries Ltd is 0.25 %.

What is the ROCE of Kirloskar Industries Ltd?

The ROCE of Kirloskar Industries Ltd is 10.7 %.

What is the ROE of Kirloskar Industries Ltd?

The ROE of Kirloskar Industries Ltd is 5.41 %.

What is the Face Value of Kirloskar Industries Ltd?

The Face Value of Kirloskar Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kirloskar Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE