Stock Price Movement and Market Context
On 23 Feb 2026, Kirloskar Ferrous Industries Ltd (Stock ID: 331572) recorded its lowest price in the past year at Rs.412.5. This new low comes after six consecutive days of declines, during which the stock has lost 7.33% in value. The intraday high for the day was Rs.428, representing a 2.16% increase from the previous close, but the overall session ended with a day change of -1.58%, underperforming the ferrous metals sector by 1.57%.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum. This contrasts with the broader market, where the Sensex opened 92.12 points higher and was trading at 83,051.92, up 0.29%. The Sensex remains 3.74% below its 52-week high of 86,159.02, with mega-cap stocks leading the gains. However, Kirloskar Ferrous has not mirrored this positive market sentiment.
Long-Term and Recent Performance Metrics
Over the past year, Kirloskar Ferrous Industries Ltd has delivered a negative return of 17.03%, significantly lagging behind the Sensex’s positive 10.20% return. The stock’s 52-week high was Rs.617.5, highlighting the extent of the recent decline. This underperformance extends beyond the last year, with the company also trailing the BSE500 index over the last three years, one year, and three months.
Financially, the company’s operating profit has contracted at an annual rate of -0.95% over the past five years, reflecting subdued growth in its core earnings. The December 2025 quarter results showed a decline in profitability, with Profit Before Tax excluding other income (PBT LESS OI) at Rs.89.78 crore, down 10.9% compared to the previous four-quarter average. Net Profit After Tax (PAT) for the quarter was Rs.65.51 crore, a 19.7% decrease relative to the prior four-quarter average.
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Operational Efficiency and Financial Ratios
The company’s debtor turnover ratio for the half-year period stands at 5.65 times, which is considered low and may indicate slower collection cycles. Despite this, Kirloskar Ferrous maintains a strong capacity to service its debt, with a Debt to EBITDA ratio of 1.44 times, reflecting manageable leverage levels.
Return on Capital Employed (ROCE) is reported at 11.3%, which is a positive indicator of capital efficiency. The enterprise value to capital employed ratio is 1.7, suggesting the stock is valued attractively relative to its capital base. Furthermore, the company’s Price/Earnings to Growth (PEG) ratio is 0.5, implying that the stock is trading at a discount compared to its peers’ historical valuations.
Interestingly, while the stock price has declined by 17.03% over the past year, the company’s profits have increased by 45% during the same period, highlighting a divergence between earnings growth and market valuation.
Shareholding and Market Sentiment
The majority ownership of Kirloskar Ferrous Industries Ltd remains with its promoters, providing a stable shareholder base. The company operates within the ferrous metals sector, which has experienced mixed performance amid broader market fluctuations.
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Mojo Score and Analyst Ratings
Kirloskar Ferrous Industries Ltd currently holds a Mojo Score of 40.0, which corresponds to a Sell grade. This rating was downgraded from Hold on 7 Nov 2025, reflecting a reassessment of the company’s prospects based on recent performance and financial metrics. The market capitalisation grade is 3, indicating a mid-sized company within its sector.
The downgrade aligns with the company’s subdued long-term growth and recent quarterly earnings declines, reinforcing the cautious stance reflected in the stock’s price action.
Summary of Key Financial and Market Indicators
To summarise, Kirloskar Ferrous Industries Ltd’s stock has reached a 52-week low of Rs.412.5 after a sustained period of decline. The stock’s underperformance relative to the Sensex and its sector, combined with negative returns over the past year and subdued operating profit growth, have contributed to this price level. Despite some positive financial ratios such as ROCE and manageable debt levels, the recent quarterly earnings contraction and low debtor turnover ratio present challenges.
The company’s valuation metrics suggest it is trading at a discount compared to peers, but this has not translated into price strength in the market. The promoter holding remains significant, providing ownership stability amid the current market conditions.
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