Why is Kirloskar Electric Company Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- High Debt Company with a Debt to Equity ratio (avg) at 5.26 times
- The company has been able to generate a Return on Capital Employed (avg) of 7.90% signifying low profitability per unit of total capital (equity and debt)
2
75.55% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
3
Below par performance in long term as well as near term
- Along with generating -35.65% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Kirl. Electric for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kirl. Electric
-35.65%
-0.92
38.84%
Sensex
1.01%
0.10
12.13%
Quality key factors
Factor
Value
Sales Growth (5y)
15.46%
EBIT Growth (5y)
26.74%
EBIT to Interest (avg)
0.61
Debt to EBITDA (avg)
1.33
Net Debt to Equity (avg)
0.65
Sales to Capital Employed (avg)
2.09
Tax Ratio
3.53%
Dividend Payout Ratio
0
Pledged Shares
75.55%
Institutional Holding
5.05%
ROCE (avg)
3.42%
ROE (avg)
30.21%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
36
Price to Book Value
4.46
EV to EBIT
25.08
EV to EBITDA
21.45
EV to Capital Employed
3.09
EV to Sales
1.15
PEG Ratio
0.06
Dividend Yield
NA
ROCE (Latest)
7.38%
ROE (Latest)
5.69%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
26What is working for the Company
PBT LESS OI(Q)
At Rs 8.72 cr has Grown at 467.9% (vs previous 4Q average
NET SALES(Q)
Highest at Rs 151.42 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.62 times
PAT(9M)
Higher at Rs 22.20 Cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.83 times
PBDIT(Q)
Highest at Rs 15.81 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 10.44%
-1What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 22.99 cr
Loading Valuation Snapshot...
Here's what is working for Kirl. Electric
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 8.72 cr has Grown at 467.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -2.37 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.80 cr has Grown at 562.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1.78 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 151.42 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 2.62 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 15.81 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 10.44%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 8.72 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 11.80 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.83 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Kirl. Electric
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 22.99 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






