NSEI:KIRLOSBROS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


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: KIRLOSBROS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

KIRLOSBROS

2.8%

IN Machinery

1.9%

IN Market


1 Year Return

-0.3%

KIRLOSBROS

-8.3%

IN Machinery

8.1%

IN Market

Return vs Industry: KIRLOSBROS exceeded the Indian Machinery industry which returned -11.1% over the past year.

Return vs Market: KIRLOSBROS underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

KIRLOSBROSIndustryMarket
7 Day-1.6%2.8%1.9%
30 Day10.1%6.8%3.1%
90 Day-5.4%5.9%6.5%
1 Year1.1%-0.3%-6.9%-8.3%10.1%8.1%
3 Year-26.2%-28.1%8.8%4.7%35.1%28.0%
5 Year-28.5%-30.9%23.2%16.4%36.6%24.2%

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?

1.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KIRLOSBROS (₹155.6) is trading above our estimate of fair value (₹31.81)

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


Price To Earnings Ratio

PE vs Industry: KIRLOSBROS is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: KIRLOSBROS is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KIRLOSBROS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KIRLOSBROS is overvalued based on its PB Ratio (1.4x) 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?

112.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KIRLOSBROS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (6.5%).

Earnings vs Market: KIRLOSBROS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KIRLOSBROS's is expected to become profitable in the next 3 years.

Revenue vs Market: KIRLOSBROS's revenue (5% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: KIRLOSBROS's revenue (5% 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 KIRLOSBROS'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?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KIRLOSBROS is currently unprofitable.

Growing Profit Margin: KIRLOSBROS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KIRLOSBROS is unprofitable, and losses have increased over the past 5 years at a rate of -4.6% per year.

Accelerating Growth: Unable to compare KIRLOSBROS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KIRLOSBROS is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (2.3%).


Return on Equity

High ROE: KIRLOSBROS has a negative Return on Equity (-0.83%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kirloskar Brothers's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

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

Reducing Debt: KIRLOSBROS's debt to equity ratio has increased from 31% to 50.2% over the past 5 years.

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

Interest Coverage: KIRLOSBROS is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: KIRLOSBROS'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?

1.70%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.2%industryaverage1.5%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: KIRLOSBROS's dividend (1.6%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: KIRLOSBROS's dividend (1.6%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

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

Growing Dividend: KIRLOSBROS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: KIRLOSBROS is paying a dividend but the company is unprofitable.


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

What is the CEO of Kirloskar Brothers's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

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


Management Age and Tenure

4.5yrs

Average Tenure

50yo

Average Age

Experienced Management: KIRLOSBROS's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: KIRLOSBROS's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Sandeep Phadnis

    Head of Secretarial

    • Tenure: 6.8yrs
    • Compensation: ₹3.80m
  • Vikas Agarwal (44yo)

    VP and Head of Water & Irrigation

    • Chittaranjan Mate (63yo)

      CFO, Head of CFA & VP of Finance

      • Tenure: 4.5yrs
      • Compensation: ₹6.22m
    • Anurag Vohra (50yo)

      Senior VP & Head of India Business

      • Tenure: 4.2yrs
    • Amit Shukla (46yo)

      Assistant VP & Head of CIC

      • Shirish More (57yo)

        VP & Head of Procurement

        • Shreepad Khare (48yo)

          VP & Head of CQA

          • Ravi Sinha (48yo)

            VP & Head of CHRMC

            • Ravindra Birajdar (55yo)

              VP & Head of CRED

              • Nirmal Tiwari (57yo)

                VP & Head of Small Pump Operations


                Board Members

                • Kishor Chaukar (72yo)

                  Independent Non-Executive Director

                  • Tenure: 4.8yrs
                  • Compensation: ₹2.20m
                • Sanjay Kirloskar (62yo)

                  Chairman & MD

                  • Compensation: ₹46.30m
                • Pratap Shirke (71yo)

                  Non-Executive Non-independent Director

                  • Tenure: 12.5yrs
                  • Compensation: ₹1.77m
                • Rakesh Mohan (72yo)

                  Independent Non-Executive Director

                  • Tenure: 2.5yrs
                  • Compensation: ₹1.90m
                • Alok Kirloskar (35yo)

                  Non Executive Non-Independent Director

                  • Tenure: 7.5yrs
                  • Compensation: ₹51.45m
                • Rama Kirloskar (29yo)

                  Non-Executive Non-Independent Director

                  • Tenure: 2.5yrs
                  • Compensation: ₹1.75m
                • Rajeev Kher (63yo)

                  Independent Non-Executive Director

                  • Tenure: 1yrs
                  • Compensation: ₹600.00k
                • Pradyumna Vyas (61yo)

                  Additional Independent Director

                  • Tenure: 0.8yrs
                • Shailaja Kher-Hidayatullah

                  Additional Independent Director

                  • Tenure: 0.7yrs

                Company Information

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


                Key Information

                • Name: Kirloskar Brothers Limited
                • Ticker: KIRLOSBROS
                • Exchange: NSEI
                • Founded: 1888
                • Industry: Industrial Machinery
                • Sector: Capital Goods
                • Market Cap: ₹11.653b
                • 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 Analysis2020/01/19 12:48
                End of Day Share Price2020/01/17 00:00
                Earnings2019/09/30
                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.