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Swing Capital

Kennametal India Ltd

NSE: KENNAMET BSE: 505890Infra

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]

₹2,854
52W: ₹1932 — ₹3400
PE 45.3 · Book ₹365 · +682% vs book
Market Cap₹6,272 Cr
Stock P/E45.3Price to Earnings
ROCE17.6%Return on Capital
ROE12.9%Return on Equity
Div. Yield1.41%Face Value ₹10

Strengths

  • +Company has reduced debt.
  • +Company is almost debt free.
  • +Company has been maintaining a healthy dividend payout of 65.1%

Weaknesses

  • −Stock is trading at 7.84 times its book value
  • −Company has a low return on equity of 13.1% over last 3 years.

Shareholding Pattern

Promoters75%
FIIs0.35%
DIIs14.04%
Public10.6%
CategoryJun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters75%75%75%75%75%75%75%75%
FIIs1%0.91%▼0.10.93%▲0.00.88%▼0.10.93%▲0.10.87%▼0.10.38%▼0.50.35%▼0.0
DIIs13.56%13.54%▼0.013.71%▲0.213.72%▲0.013.78%▲0.113.95%▲0.214.19%▲0.214.04%▼0.2
Public10.43%10.55%▲0.110.35%▼0.210.41%▲0.110.3%▼0.110.18%▼0.110.43%▲0.310.6%▲0.2

Financial Statements

MetricDec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales271269302270287290323296334403
Expenses228224254228246250274243289326
Operating Profit43454942414049534577
OPM %16%17%16%16%14%14%15%18%13%19%
Net Profit25383025222431312451
EPS ₹11.3317.4313.7911.3710.111.114.2414.2911.123.39

AI Insights

Revenue Trend

TTM revenue at ₹1,356Cr, up 15.9% YoY. OPM at 17%.

Debt Position

Borrowings at ₹2Cr. Debt-to-equity ratio: 0.00x. Healthy balance sheet.

Capex Cycle

CWIP at ₹6Cr (2% of fixed assets). Moderate ongoing capital expenditure.

Institutional Flow

DIIs: 14.04% (+0.84pp change). FIIs: 0.35% (-0.36pp change). Promoters hold 75%.

Margin & Efficiency

ROCE improving from 9% (Jun 2014) to 18% (Jun 2025). Working capital days: 88.

Valuation

PE 45.3x with 17.6% ROCE. Price is 682% above book value of ₹365. Dividend yield: 1.41%.

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