Kirloskar Brothers Ltd (KIRLOSBROS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kirl.Pneumatic

Swaraj Engines

Kirloskar Oil

Elgi Equipments

Oswal Pumps

Cummins India

Ingersoll-Rand

Kirl. Brothers

KSB

Shakti Pumps

Powerica Ltd

Why is Kirloskar Brothers Ltd ?

High Management Efficiency with a high ROE of 16.31%

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.81% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 19.20%
DEBTORS TURNOVER RATIO(HY) Lowest at 6.85 times
PBT LESS OI(Q) At Rs 145.20 cr has Fallen at -9.31%

With ROE of 16.5, it has a Expensive valuation with a 6.1 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 5.50%, its profits have fallen by -3.6%

Majority shareholders : Promoters

Market Beating performance in long term as well as near term

Along with generating 5.50% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

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, High Return

Absolute

Risk Adjusted

Volatility

Kirl. Brothers

5.5%

0.13

41.99%

Sensex

-4.95%

-0.37

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.81%

EBIT Growth (5y)

20.81%

EBIT to Interest (avg)

13.20

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

2.04

Tax Ratio

20.12%

Dividend Payout Ratio

13.39%

Pledged Shares

Institutional Holding

16.62%

ROCE (avg)

25.52%

ROE (avg)

16.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.14

EV to EBIT

32.71

EV to EBITDA

26.69

EV to Capital Employed

7.81

EV to Sales

3.20

PEG Ratio

Dividend Yield

0.37%

ROCE (Latest)

23.87%

ROE (Latest)

16.47%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 405.30 cr

NET SALES(Q)

Highest at Rs 1,415.10 cr

-5What is not working for the Company

ROCE(HY)

Lowest at 19.20%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.85 times

PBT LESS OI(Q)

At Rs 145.20 cr has Fallen at -9.31%

PAT(Q)

At Rs 129.87 cr has Fallen at -6.1%

Loading Valuation Snapshot...

Here's what is working for Kirl. Brothers

Net Sales - Quarterly

Highest at Rs 1,415.10 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 405.30 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Kirl. Brothers

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 145.20 cr has Fallen at -9.31%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 129.87 cr has Fallen at -6.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 6.85 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 27.10 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income