Stock Price Movement and Market Context
On 27 Jan 2026, Kennametal India Ltd (Stock ID: 732050) recorded its lowest price in the last 52 weeks at Rs.1946.55. Despite this, the stock marginally outperformed its sector by 0.49% on the day, trading within a narrow range of Rs.17.9. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downtrend in price momentum.
The broader market environment saw the Sensex recover from an initial dip of 100.91 points to close 397.32 points higher at 81,834.11, a gain of 0.36%. While mega-cap stocks led the market rally, Kennametal India’s industrial manufacturing sector continues to face challenges, with other indices such as NIFTY MEDIA and NIFTY REALTY also hitting new 52-week lows on the same day.
Performance Metrics and Valuation Concerns
Over the past year, Kennametal India Ltd has delivered a total return of -13.83%, significantly lagging behind the Sensex’s positive 8.58% gain during the same period. This marks a continuation of the stock’s consistent underperformance against the benchmark over the last three years, with the company also trailing the BSE500 index in each of those annual periods.
Valuation metrics further highlight the stock’s challenges. The company’s return on equity (ROE) stands at 14.6%, which, while respectable, is accompanied by a high price-to-book (P/B) ratio of 5.7. This elevated valuation multiple contrasts with the stock’s discounted trading relative to its peers’ historical averages, suggesting a disconnect between price and underlying fundamentals.
Additionally, the price-to-earnings-to-growth (PEG) ratio is notably high at 39.3, indicating that the stock’s price may not be justified by its earnings growth prospects. Despite a marginal 0.2% increase in profits over the past year, the stock’s valuation appears stretched in the context of its recent performance.
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Financial Health and Profitability Trends
Kennametal India Ltd maintains a conservative capital structure with an average debt-to-equity ratio of zero, reflecting a debt-free balance sheet. This financial prudence provides a stable foundation amid market volatility.
Operating profit growth has been robust over the long term, with an annualised increase of 51.31%. The company reported its highest quarterly PBDIT of Rs.52.70 crore and an operating profit to net sales ratio of 17.80% in the September 2025 quarter. Profit before tax excluding other income (PBT less OI) also rose by 33.12% to Rs.41.00 crore during the same period, indicating operational efficiency in recent quarters.
Despite these positive profit trends, the stock’s price performance has not reflected these gains, suggesting that market sentiment remains cautious.
Shareholding and Market Grade
The majority shareholding is held by promoters, providing a stable ownership base. However, the company’s Mojo Score currently stands at 44.0, with a Mojo Grade of Sell, downgraded from Hold on 24 Dec 2025. The market capitalisation grade is rated at 3, indicating a mid-cap status with moderate liquidity and market presence.
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Comparative Performance and Sectoral Positioning
Within the industrial manufacturing sector, Kennametal India Ltd’s stock has underperformed relative to peers and the broader market indices. The 52-week high of Rs.2745.10 contrasts sharply with the current low, underscoring the stock’s downward trajectory over the past year.
While the Sensex trades below its 50-day moving average, it remains above its 200-day moving average, reflecting mixed market signals. In contrast, Kennametal India’s consistent trading below all major moving averages highlights its relative weakness within the sector.
The stock’s narrow trading range on the day of the new low suggests limited volatility but also a lack of upward momentum, reinforcing the subdued market sentiment.
Summary of Key Metrics
To summarise, Kennametal India Ltd’s key financial and market metrics as of 27 Jan 2026 are:
- 52-week low price: Rs.1946.55
- 1-year return: -13.83%
- Sensex 1-year return: +8.58%
- ROE: 14.6%
- Price to Book Value: 5.7
- PEG Ratio: 39.3
- Debt to Equity: 0 (average)
- Quarterly PBDIT: Rs.52.70 crore (highest)
- Operating Profit to Net Sales (Q): 17.80% (highest)
- PBT less Other Income (Q): Rs.41.00 crore, growth of 33.12%
- Mojo Score: 44.0 (Sell), downgraded from Hold on 24 Dec 2025
The stock’s current valuation and price action reflect a cautious stance by the market, despite pockets of financial strength and profitability improvements in recent quarters.
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