Why is Kirloskar Pneumatic Company Ltd ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Operating profit has grown by an annual rate 46.19%
- Company has a low Debt to Equity ratio (avg) at 0 times
- The company has been able to generate a Return on Capital Employed (avg) of 26.65% signifying high profitability per unit of total capital (equity and debt)
2
Flat results in Dec 25
3
With ROE of 18.5, it has a Very Expensive valuation with a 6.7 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 8.81%, its profits have risen by 7.1% ; the PEG ratio of the company is 5.1
4
High Institutional Holdings at 35.03%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
How much should you hold?
- Overall Portfolio exposure to Kirl.Pneumatic 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.Pneumatic for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Kirl.Pneumatic
8.81%
0.22
40.38%
Sensex
8.49%
0.74
11.41%
Quality key factors
Factor
Value
Sales Growth (5y)
20.93%
EBIT Growth (5y)
46.19%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.38
Sales to Capital Employed (avg)
1.49
Tax Ratio
24.71%
Dividend Payout Ratio
30.75%
Pledged Shares
0
Institutional Holding
35.03%
ROCE (avg)
25.08%
ROE (avg)
15.58%
Valuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
30
Price to Book Value
6.67
EV to EBIT
28.15
EV to EBITDA
25.20
EV to Capital Employed
10.07
EV to Sales
4.38
PEG Ratio
5.13
Dividend Yield
1.15%
ROCE (Latest)
31.47%
ROE (Latest)
18.52%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
2What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 4.67 times
PBT LESS OI(Q)
At Rs 52.80 cr has Grown at 23.36%
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Kirl.Pneumatic
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 52.80 cr has Grown at 23.36%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 4.67 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio






