Kennametal
Kennametal
Capital GoodsKey Fundamentals
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Key Insights
Strengths
4- Company has reduced debt.
- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 24.2% CAGR over last 5 years
Weaknesses
1- Stock is trading at 12.0 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Kennametal India Ltd trades at a market cap of ₹6,388 Cr with a PE of 46.2x and P/B of 8.0x, reflecting premium valuations. The company is virtually debt-free with a 65% dividend payout, but delivers a modest 13% ROE over three years while TTM sales grew 18% and profits grew 36%.
- Company is almost debt-free, significantly reducing financial risk and interest burden
- TTM profit growth of 36% indicates strong recent earnings momentum
- TTM sales growth of 18% shows accelerating top-line performance compared to 3-year CAGR of 6%
- Healthy dividend payout ratio of 65.1% demonstrates shareholder-friendly capital allocation with current yield of 1.37%
- 5-year compounded profit CAGR of 22% reflects sustained long-term earnings growth
- 10-year stock CAGR of 16% shows consistent long-term wealth creation
- 5-year compounded sales CAGR of 13% indicates solid medium-term revenue trajectory
- Company has actively reduced debt over time, strengthening its balance sheet position
- PE ratio of 46.2x is significantly elevated for an industrial company with 13% ROE
- Price-to-book of 8.0x is expensive, implying high expectations already priced in
- 3-year ROE averages only 13%, which is modest relative to the premium valuation commanded
- 3-year compounded profit CAGR is negative at -5%, indicating earnings were inconsistent before recent recovery
- 3-year stock CAGR of only 3% suggests the stock stagnated for an extended period before the recent rally
- 10-year compounded sales CAGR of just 7% points to structurally slow top-line growth over longer periods
- 1-year stock return of 24% has expanded an already high PE multiple, increasing downside risk if earnings disappoint
- ROE has remained flat at 13-14% across 3, 5, and 10-year periods, showing limited improvement in capital efficiency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Related party transactions approved Jun 23
Shareholders approved material related party transactions with Kennametal Inc., USA and Kennametal Europe GmbH, Switzerland with 99.97% votes in favour via e-voting.
- Trading window closed pre-results Jun 12
Trading window closed from June 16, 2026 until 48 hours after Q4FY26 results are declared, per SEBI insider trading regulations.
TL;DR: Limited news flow for Kennametal India with only routine corporate governance actions reported. The overwhelming shareholder approval (99.97%) for related party transactions signals no governance concerns. Q4FY26 results are imminent given the trading window closure, which will be the next meaningful catalyst for the stock.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 279 | 258 | 271 | 269 | 302 | 270 | 287 | 290 | 323 | 296 | 334 | 403 | 478 |
| Expenses | 243 | 223 | 228 | 224 | 254 | 228 | 246 | 250 | 274 | 243 | 289 | 326 | 349 |
| Operating Profit | 36 | 35 | 43 | 45 | 49 | 42 | 41 | 40 | 49 | 53 | 45 | 77 | 129 |
| OPM % | 13% | 14% | 16% | 17% | 16% | 16% | 14% | 14% | 15% | 18% | 13% | 19% | 27% |
| Other Income | 1 | 2 | 2 | 18 | 3 | 3 | 3 | 4 | 4 | 2 | 2 | 4 | 2 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 11 | 10 | 11 | 11 | 11 | 12 | 11 | 12 | 12 | 12 | 12 | 12 | 12 |
| PBT | 27 | 26 | 33 | 52 | 40 | 34 | 32 | 33 | 41 | 43 | 35 | 69 | 118 |
| Tax % | 30% | 35% | 25% | 26% | 24% | 26% | 31% | 26% | 24% | 28% | 31% | 26% | 25% |
| Net Profit | 19 | 17 | 25 | 38 | 30 | 25 | 22 | 24 | 31 | 31 | 24 | 51 | 89 |
| EPS in Rs | 8.51 | 7.78 | 11.33 | 17.43 | 13.79 | 11.37 | 10.1 | 11.1 | 14.24 | 14.29 | 11.1 | 23.39 | 40.4 |
Profit & Loss
| Particulars | Jun 2015 | Jun 2016 | Jun 2017 | Jun 2018 | Jun 2019 | Jun 2020 | Jun 2021 | Jun 2022 | Jun 2023 | Jun 2024 | Jun 2025 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 570 | 570 | 652 | 793 | 927 | 641 | 811 | 991 | 1,077 | 1,100 | 1,170 | 1,511 |
| Expenses | 510 | 524 | 594 | 692 | 791 | 580 | 691 | 812 | 926 | 929 | 998 | 1,207 |
| Operating Profit | 60 | 46 | 58 | 101 | 136 | 61 | 120 | 179 | 152 | 171 | 172 | 304 |
| OPM % | 11% | 8% | 9% | 13% | 15% | 10% | 15% | 18% | 14% | 16% | 15% | 20% |
| Other Income | 12 | 9 | 0 | 0 | 14 | 15 | 8 | 9 | 5 | 24 | 14 | 11 |
| Interest | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 1 | 0 | 0 |
| Depreciation | 26 | 24 | 28 | 28 | 28 | 34 | 38 | 36 | 39 | 44 | 46 | 48 |
| PBT | 46 | 31 | 30 | 73 | 122 | 40 | 89 | 153 | 118 | 151 | 140 | 266 |
| Tax % | 28% | 32% | 20% | 28% | 29% | 20% | 26% | 25% | 25% | 27% | 27% | 26% |
| Net Profit | 34 | 21 | 24 | 52 | 86 | 32 | 67 | 114 | 88 | 110 | 103 | 196 |
| EPS in Rs | 15.25 | 9.44 | 11.09 | 23.8 | 39.27 | 14.79 | 30.3 | 51.92 | 39.9 | 50.28 | 46.82 | 89.18 |
| Div. Payout % | 13% | 21% | 18% | 8% | 5% | 0% | 66% | 46% | 50% | 60% | 86% | 0% |
Balance Sheet
| Particulars | Jun 2015 | Jun 2016 | Jun 2017 | Jun 2018 | Jun 2019 | Jun 2020 | Jun 2021 | Jun 2022 | Jun 2023 | Jun 2024 | Jun 2025 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 | 22 |
| Reserves | 340 | 355 | 372 | 417 | 497 | 528 | 551 | 624 | 666 | 712 | 725 | 832 |
| Borrowings | 0 | 0 | 0 | 0 | 10 | 13 | 0 | 0 | 3 | 3 | 2 | 2 |
| Other Liabilities | 117 | 130 | 144 | 199 | 226 | 125 | 191 | 184 | 160 | 191 | 217 | 409 |
| Total Liabilities | 478 | 507 | 537 | 638 | 755 | 688 | 765 | 830 | 851 | 927 | 967 | 1,265 |
| Fixed Assets | 101 | 107 | 146 | 154 | 184 | 247 | 225 | 215 | 275 | 294 | 273 | 282 |
| CWIP | 6 | 16 | 3 | 21 | 67 | 32 | 52 | 77 | 34 | 8 | 8 | 7 |
| Investments | 0 | 0 | 51 | 0 | 0 | 2 | 2 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 371 | 383 | 338 | 462 | 504 | 408 | 486 | 538 | 542 | 626 | 685 | 976 |
| Total Assets | 478 | 507 | 537 | 638 | 755 | 688 | 765 | 830 | 851 | 927 | 967 | 1,265 |
Cash Flow
| Particulars | Jun 2015 | Jun 2016 | Jun 2017 | Jun 2018 | Jun 2019 | Jun 2020 | Jun 2021 | Jun 2022 | Jun 2023 | Jun 2024 | Jun 2025 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 61 | 17 | 77 | 63 | 84 | 28 | 155 | 49 | 116 | 114 | 145 | 18 |
| Investing | -17 | -42 | -45 | -55 | -139 | -32 | -24 | -48 | -45 | -23 | -4 | -48 |
| Financing | -5 | -5 | -5 | -5 | 4 | 2 | -57 | -53 | -45 | -67 | -89 | -89 |
| Net Cash Flow | 38 | -30 | 27 | 2 | -51 | -2 | 73 | -51 | 26 | 24 | 52 | -118 |
| Free Cash Flow | 43 | -26 | 27 | 3 | -25 | -33 | 129 | -16 | 69 | 86 | 116 | -35 |
| CFO/OP | 134 | 82 | 143 | 65 | 89 | 71 | 144 | 49 | 97 | 84 | 93 | 24 |
Ratios
| Particulars | Jun 2015 | Jun 2016 | Jun 2017 | Jun 2018 | Jun 2019 | Jun 2020 | Jun 2021 | Jun 2022 | Jun 2023 | Jun 2024 | Jun 2025 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 71 | 76 | 62 | 66 | 57 | 46 | 51 | 50 | 48 | 59 | 59 | 65 |
| Inventory Days | 115 | 137 | 114 | 136 | 150 | 208 | 173 | 195 | 149 | 168 | 172 | 280 |
| Days Payable | 75 | 86 | 89 | 92 | 93 | 60 | 86 | 75 | 46 | 68 | 65 | 127 |
| Cash Conversion Cycle | 111 | 127 | 87 | 109 | 114 | 194 | 138 | 170 | 151 | 160 | 166 | 219 |
| Working Capital Days | 79 | 90 | 57 | 57 | 68 | 96 | 62 | 88 | 82 | 101 | 88 | 122 |
| ROCE % | 11% | 8% | 9% | 20% | 25% | 8% | 16% | 25% | 17% | 19% | 18% | 33% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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58 extracted metrics + investor summaries across FY11–FY25.
Documents
Frequently Asked Questions about Kennametal
What does Kennametal India Ltd do?
Where is Kennametal India Ltd (KENNAMET) listed?
Which sector does Kennametal India Ltd belong to?
What is the market capitalisation of Kennametal India Ltd?
What is the PE ratio of Kennametal India Ltd?
What is the 52-week high and low of Kennametal India Ltd?
Does Kennametal India Ltd pay dividends?
What is the Return on Equity (ROE) of Kennametal India Ltd?
Company Information
Kennametal India Ltd was incorporated in 1938, it is a 75% subsidiary of Kennametal Inc. It manufactures carbide tools and special-purpose machines for automotive, defense, railways, infrastructure and General engineering segments. The manufacturing unit is in Bengaluru.[1][2]
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