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 35.25%
- 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 28.33% signifying high profitability per unit of total capital (equity and debt)
2
With a growth in Net Profit of 78.66%, the company declared Very Positive results in Mar 26
- ROCE(HY) Highest at 28.48%
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 117.30 cr
- NET SALES(Q) Highest at Rs 711.80 cr
3
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 04-May-26 and has generated 6.88% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
4
High Institutional Holdings at 36.11%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.08% over the previous quarter.
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, High Return
Absolute
Risk Adjusted
Volatility
Kirl.Pneumatic
15.72%
0.95
34.53%
Sensex
-3.03%
-0.49
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
14.41%
EBIT Growth (5y)
29.44%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
1.50
Tax Ratio
24.67%
Dividend Payout Ratio
30.17%
Pledged Shares
0
Institutional Holding
36.37%
ROCE (avg)
27.49%
ROE (avg)
16.52%
Valuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
41
Price to Book Value
7.75
EV to EBIT
27.30
EV to EBITDA
24.89
EV to Capital Employed
11.67
EV to Sales
5.17
PEG Ratio
1.30
Dividend Yield
0.80%
ROCE (Latest)
41.62%
ROE (Latest)
21.91%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
15What is working for the Company
ROCE(HY)
Highest at 28.48%
PBT LESS OI(Q)
At Rs 36.60 cr has Grown at 42.97%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 117.30 cr
PAT(Q)
At Rs 33.40 cr has Grown at 25.6%
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.38 times
Loading Valuation Snapshot...
Here's what is working for Kirl.Pneumatic
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 36.60 cr has Grown at 42.97%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 33.40 cr has Grown at 25.6%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 117.30 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.Pneumatic
Debtors Turnover Ratio- Half Yearly
Lowest at 3.38 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio