KPI Green Energy Faces Mixed Technical Outlook Amid Strong Sales Growth and Elevated Valuation

KPI Green Energy, a small-cap player in the power industry, has recently undergone an adjustment in its evaluation. This revision reflects a shift in the technical outlook, moving from a mildly bullish stance to a mildly bearish one. The technical indicators present a mixed picture, with the MACD and KST showing mildly bearish trends on both weekly and monthly bases, while moving averages indicate a mildly bullish sentiment on a daily scale.
In terms of performance metrics, KPI Green Energy has reported a notable return of -5.89% over the past year, contrasting with the broader market's positive return of 8.59%. Despite this, the company has demonstrated strong growth in net sales, achieving an annual growth rate of 95.61%, and operating profit growth of 73.60%. The recent quarter also marked a significant achievement, with net sales reaching Rs 634.30 crore and PBT less other income hitting Rs 150.90 crore.

However, the stock's valuation appears elevated, with a return on capital employed (ROCE) of 14.6 and a high enterprise value to capital employed ratio of 2.5. Additionally, a substantial portion of promoter shares, at 45.49%, is pledged, which may exert further pressure in a declining market.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.