Why is Kirloskar Electric Company Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 13.46% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
- The company has been able to generate a Return on Capital Employed (avg) of 6.43% signifying low profitability per unit of total capital (equity and debt)
2
The company has declared Negative results for the last 7 consecutive quarters
- PAT(Q) At Rs 0.57 cr has Fallen at -43.0% (vs previous 4Q average)
- ROCE(HY) Lowest at 12.79%
- NET SALES(Q) At Rs 119.75 cr has Fallen at -18.8% (vs previous 4Q average)
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 24-Mar-25 and has generated -5.16% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROCE of 10.1, it has a Expensive valuation with a 4.5 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.39%, its profits have fallen by -84.4%
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 Capital Goods)
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, High Return
Absolute
Risk Adjusted
Volatility
Kirl. Electric
11.39%
0.19
61.06%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
13.46%
EBIT Growth (5y)
28.67%
EBIT to Interest (avg)
0.29
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
2.24
Tax Ratio
0.54%
Dividend Payout Ratio
0
Pledged Shares
75.55%
Institutional Holding
5.53%
ROCE (avg)
-1.28%
ROE (avg)
36.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
276
Industry P/E
33
Price to Book Value
7.18
EV to EBIT
45.06
EV to EBITDA
36.22
EV to Capital Employed
4.54
EV to Sales
1.60
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.06%
ROE (Latest)
3.40%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
1What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.96 times
-12What is not working for the Company
PAT(Q)
At Rs 0.57 cr has Fallen at -43.0% (vs previous 4Q average
ROCE(HY)
Lowest at 12.79%
NET SALES(Q)
At Rs 119.75 cr has Fallen at -18.8% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 273.68 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.09
Loading Valuation Snapshot...
Here's what is working for Kirl. Electric
Debt-Equity Ratio - Half Yearly
Lowest at 0.96 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
Profit After Tax (PAT) - Quarterly
At Rs 0.57 cr has Fallen at -43.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1.00 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 119.75 cr has Fallen at -18.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 147.39 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 119.75 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 273.68 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.09
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)