Current Rating Overview
On 17 November 2025, KPI Green Energy Ltd’s rating was revised to Sell from a previous Hold status, accompanied by a significant drop in its Mojo Score from 57 to 37. This score reflects a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook. The current Sell rating indicates that, based on these parameters, the stock is expected to underperform relative to the broader market and peers in the power sector.
Here’s How KPI Green Energy Ltd Looks Today
As of 07 February 2026, the stock’s performance and fundamentals present a mixed but cautious picture for investors. Despite some positive financial trends, the overall outlook is weighed down by valuation concerns and technical weakness.
Quality Assessment
The company’s quality grade is assessed as average. This suggests that while KPI Green Energy Ltd maintains a stable operational base and reasonable profitability metrics, it does not exhibit the robust quality characteristics typically favoured by investors seeking consistent earnings growth and operational excellence. The Return on Capital Employed (ROCE) stands at 14.6%, which is respectable but not exceptional within the power sector context.
Valuation Considerations
Valuation is a key factor influencing the current rating, with KPI Green Energy Ltd classified as expensive. The stock trades at an enterprise value to capital employed ratio of 2.2, which is higher than the average historical valuations of its peers. This elevated valuation level implies that the market has priced in significant growth expectations, which may be challenging to meet given the company’s recent performance. Investors should be cautious as the premium valuation increases downside risk if growth disappoints.
Financial Trend
On a positive note, the company’s financial trend is rated positive. The latest data shows a substantial 61.3% increase in profits over the past year, signalling strong operational improvements and earnings momentum. Additionally, the PEG ratio of 0.3 indicates that the stock’s price growth is not excessively high relative to its earnings growth, which could be attractive from a growth perspective. However, this positive financial trend has not translated into share price gains, as the stock has underperformed the broader market.
Technical Outlook
The technical grade for KPI Green Energy Ltd is bearish. The stock has experienced significant price declines recently, with a 1-month return of -15.69%, a 3-month return of -21.46%, and a 6-month return of -24.43%. Year-to-date, the stock has fallen by 20.21%, and over the last year, it has delivered a negative return of -11.28%, underperforming the BSE500 index, which has gained 7.71% in the same period. This bearish technical trend suggests that market sentiment remains weak, and the stock may face continued selling pressure.
Additional Risk Factors
Investors should also be aware that 44.96% of promoter shares are pledged. High promoter share pledging can exert additional downward pressure on the stock price, especially in volatile or falling markets, as forced selling may occur to meet margin calls. This factor adds to the risk profile of the stock and is an important consideration for risk-averse investors.
Summary for Investors
In summary, KPI Green Energy Ltd’s current Sell rating reflects a combination of average quality, expensive valuation, positive financial trends, but bearish technical signals. While the company’s improving profits and reasonable PEG ratio offer some encouragement, the elevated valuation and weak price momentum suggest caution. Investors should carefully weigh these factors and consider the potential risks associated with promoter share pledging and recent underperformance relative to the market.
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Performance in Context
Examining the stock’s returns as of 07 February 2026, KPI Green Energy Ltd has struggled to keep pace with the broader market. Its 1-day decline of 0.86% and 1-week gain of 1.53% are overshadowed by longer-term negative returns, including a 1-month drop of 15.69% and a 3-month fall of 21.46%. Over six months, the stock has declined by 24.43%, and year-to-date losses stand at 20.21%. These figures highlight persistent selling pressure and investor caution.
Despite these setbacks, the company’s profit growth of 61.3% over the past year is a notable bright spot. This divergence between earnings growth and share price performance may reflect market concerns about sustainability of profits, valuation levels, or external risks such as sector headwinds and promoter share pledging.
Sector and Market Position
KPI Green Energy Ltd operates within the power sector, a space that is currently facing a complex mix of regulatory, technological, and market challenges. While the company is classified as a smallcap, its valuation and financial metrics suggest it is priced for growth that has yet to materialise in share price appreciation. Investors should consider the broader sector dynamics and how they may impact the company’s future prospects.
Investor Takeaway
For investors, the Sell rating serves as a cautionary signal. It advises a careful review of the stock’s fundamentals and market conditions before committing capital. Those holding the stock may want to reassess their positions in light of the bearish technicals and valuation concerns, while prospective buyers should weigh the risks against the company’s positive profit trajectory.
Overall, KPI Green Energy Ltd’s current rating and analysis underscore the importance of a balanced approach that considers quality, valuation, financial trends, and technical factors in investment decisions.
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