BSE:500241

Stock Analysis Report

Executive Summary

Kirloskar Brothers Limited provides fluid management solutions in India and internationally.

Rewards

Earnings are forecast to grow 22.02% per year

Earnings grew by 914.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record with moderate growth potential.


Similar Companies

Share Price & News

How has Kirloskar Brothers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500241's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

27.0%

500241

-0.7%

IN Machinery

-0.6%

IN Market


1 Year Return

18.3%

500241

-0.2%

IN Machinery

11.1%

IN Market

Return vs Industry: 500241 exceeded the Indian Machinery industry which returned -0.2% over the past year.

Return vs Market: 500241 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

500241IndustryMarket
7 Day27.0%-0.7%-0.6%
30 Day22.7%-1.4%-0.5%
90 Day25.5%4.3%3.0%
1 Year19.9%18.3%1.3%-0.2%13.1%11.1%
3 Year-21.1%-23.1%1.8%-2.0%24.5%18.0%
5 Year-6.8%-9.8%19.2%12.4%37.8%25.7%

Price Volatility Vs. Market

How volatile is Kirloskar Brothers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kirloskar Brothers undervalued compared to its fair value and its price relative to the market?

19.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500241 (₹177.8) is trading above our estimate of fair value (₹87.15)

Significantly Below Fair Value: 500241 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500241 is poor value based on its PE Ratio (19.8x) compared to the Machinery industry average (14.9x).

PE vs Market: 500241 is poor value based on its PE Ratio (19.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500241 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 500241 is overvalued based on its PB Ratio (1.6x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Kirloskar Brothers forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500241's forecast earnings growth (22% per year) is above the savings rate (6.5%).

Earnings vs Market: 500241's earnings (22% per year) are forecast to grow faster than the Indian market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500241's revenue (4.9% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 500241's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 500241's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kirloskar Brothers performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500241 has high quality earnings.

Growing Profit Margin: 500241's current net profit margins (2%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: 500241's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: 500241's earnings growth over the past year (914.1%) exceeds its 5-year average (4.7% per year).

Earnings vs Industry: 500241 earnings growth over the past year (914.1%) exceeded the Machinery industry -6.2%.


Return on Equity

High ROE: 500241's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kirloskar Brothers's financial position?


Financial Position Analysis

Short Term Liabilities: 500241's short term assets (₹16.8B) exceed its short term liabilities (₹14.2B).

Long Term Liabilities: 500241's short term assets (₹16.8B) exceed its long term liabilities (₹2.0B).


Debt to Equity History and Analysis

Debt Level: 500241's debt to equity ratio (50.2%) is considered high.

Reducing Debt: 500241's debt to equity ratio has increased from 32.8% to 50.2% over the past 5 years.

Debt Coverage: 500241's debt is not well covered by operating cash flow (12%).

Interest Coverage: 500241's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

Inventory Level: 500241 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500241's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is Kirloskar Brothers's current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Kirloskar Brothers before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.2%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: 500241's dividend (2.25%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500241's dividend (2.25%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 500241's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500241's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), 500241's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Kirloskar Brothers has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Chittaranjan Mate
CFO, Head of CFA & VP of Finance4.6yrs₹6.22mno data
Sandeep Phadnis
Head of Secretarial6.8yrs₹3.80mno data
Vikas Agarwal
VP and Head of Water & Irrigation0yrsno datano data
Anurag Vohra
Senior VP & Head of India Business4.3yrsno datano data
Nirmal Tiwari
VP & Head of Small Pump Operations0yrsno datano data
Amit Shukla
Assistant VP & Head of CIC0yrsno datano data
Ravindra Birajdar
VP & Head of CRED0yrsno datano data
Shreepad Khare
VP & Head of CQA0yrsno datano data
Ravi Sinha
VP & Head of CHRMC0yrsno datano data
Shirish More
VP & Head of Procurement0yrsno datano data

4.6yrs

Average Tenure

50yo

Average Age

Experienced Management: 500241's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjay Kirloskar
Chairman & MD0yrs₹46.30m40.41% 5.8b
Kishor Chaukar
Independent Non-Executive Director4.8yrs₹2.20mno data
Pratap Shirke
Non-Executive Non-independent Director12.6yrs₹1.77m0.025% 3.6m
Rakesh Mohan
Independent Non-Executive Director2.6yrs₹1.90mno data
Alok Kirloskar
Non Executive Non-Independent Director7.6yrs₹51.45m0.0078% 1.1m
Rama Kirloskar
Non-Executive Non-Independent Director2.6yrs₹1.75mno data
Rajeev Kher
Independent Non-Executive Director1.1yrs₹600.00kno data
Pradyumna Vyas
Additional Independent Director0.9yrsno datano data
Shailaja Kher-Hidayatullah
Additional Independent Director0.8yrsno datano data

2.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 500241's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kirloskar Brothers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kirloskar Brothers Limited
  • Ticker: 500241
  • Exchange: BSE
  • Founded: 1888
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹14.282b
  • Shares outstanding: 79.41m
  • Website: https://www.kirloskarpumps.com

Number of Employees


Location

  • Kirloskar Brothers Limited
  • Yamuna
  • Survey No. 98/(3-7)
  • Pune
  • Maharashtra
  • 411045
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500241BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
KIRLOSBROSNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Kirloskar Brothers Limited provides fluid management solutions in India and internationally. The company manufactures various pumps, including end suction, split case, multistage, special and engineered, monobloc, vertical turbine, submersible, and sump pumps. It also provides valves, such as butterfly, sluice, non-return, kinetic air, foot, gate, suction diffuser and triple duty, ball, steam trap, forged steel gate, globe, and check valves, as well as cast steel gate, globe, and check valves. In addition, the company offers hydro turbines comprising Francis, Kaplan, and Pelton wheel turbines; and mobile pump controllers to assist a pump user to monitor and operate the pump remotely using a mobile. Further, it provides packaged systems, which include pressure boosting hydro-pneumatic, pressure booster, firefighting, condition monitoring, and solar pumping systems, as well as heating, ventilation, air conditioning, and refrigeration systems. Additionally, the company offers steel castings for various industries, such as power, mining, cement, heavy engineering application, sugar, etc.; stators, rotors, and electric motors, as well as installs SPP pumps and systems; manufactures and sells head multi-stage and rubber lined slurry pumps, and white metal lined bearings; and sells centrifugal, fire-fighting, and water and waste water pumps. In addition, it is involved in the manufacture of API and non-API pumps; manufacture and sale of bare shaft and packaged pump sets; provision of solutions for HVAC, fire protection, turf irrigation, etc.; and manufacture of coatings for various equipment. The company serves industry, building and construction, oil and gas, marine and defense, irrigation, power, and water resource management markets through a network of dealers and distributors. Kirloskar Brothers Limited was founded in 1888 and is headquartered in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 12:41
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.