Why is Kirloskar Brothers Ltd ?
1
High Management Efficiency with a high ROE of 16.31%
2
The company is Net-Debt Free
3
Poor long term growth as Net Sales has grown by an annual rate of 10.06% and Operating profit at 17.31% over the last 5 years
4
Flat results in Jun 26
- ROCE(HY) Lowest at 19.20%
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.85 times
- EPS(Q) Lowest at Rs 8.38
5
With ROE of 16.5, it has a Expensive valuation with a 6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 1.99%, its profits have fallen by -4.1%
6
Majority shareholders : Promoters
How much should you hold?
- Overall Portfolio exposure to Kirl. Brothers should be less than 10%
- Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kirl. Brothers for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Kirl. Brothers
1.99%
0.05
37.76%
Sensex
-3.2%
-0.24
13.59%
Quality key factors
Factor
Value
Sales Growth (5y)
10.06%
EBIT Growth (5y)
17.31%
EBIT to Interest (avg)
13.65
Debt to EBITDA (avg)
0.76
Net Debt to Equity (avg)
-0.25
Sales to Capital Employed (avg)
2.04
Tax Ratio
20.40%
Dividend Payout Ratio
13.39%
Pledged Shares
0
Institutional Holding
16.64%
ROCE (avg)
25.52%
ROE (avg)
16.31%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
28
Price to Book Value
6.00
EV to EBIT
31.98
EV to EBITDA
25.87
EV to Capital Employed
7.63
EV to Sales
3.04
PEG Ratio
NA
Dividend Yield
0.38%
ROCE (Latest)
23.87%
ROE (Latest)
16.47%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
2What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 405.30 cr
-4What is not working for the Company
ROCE(HY)
Lowest at 19.20%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.85 times
EPS(Q)
Lowest at Rs 8.38
Loading Valuation Snapshot...
Here's what is working for Kirl. Brothers
Cash and Cash Equivalents - Half Yearly
Highest at Rs 405.30 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Kirl. Brothers
Earnings per Share (EPS) - Quarterly
Lowest at Rs 8.38
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 6.85 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






