Kirl. Electric (KECL)
TurnaroundFairStock Score: 10/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹143.56 |
| Market Cap | ₹953.44 Cr |
| P/E Ratio | 113.94 |
| ROCE | 8.35% |
| ROE | 12.77% |
| Dividend Yield | 0% |
| Profit Growth | -968.12% |
| Debt/Equity | 0.76 |
| Sales Growth | -22.03% |
| Promoter Holding | 49.59% |
| 52-Week Range | ₹75.47 — ₹155 |
| Sector | Electrical Equipment |
| Book Value | ₹19.85 |
Strengths
- Promoter holding is substantial at 49.59%, aligning management with minority shareholders.
- Sales grew 26.45%, with latest quarter revenue of ₹151 Cr, showing business traction.
- Piotroski F-score of 7/9 indicates improving fundamentals and financial health.
- The 1000% profit growth, though from a low base, shows earnings are moving in the right direction.
Concerns
- At P/E 32.06 and P/B 6.01, valuation is rich for a company with ROE of only 12.77% and ROCE of 8.35%.
- Latest quarter net profit is just ₹4 Cr on ₹151 Cr sales — a thin 2.6% margin; the 1000% profit growth is misleading.
- Debt/Equity of 0.83 and zero dividend mean the balance sheet and shareholders depend on uncertain reinvestment.
- Earnings yield is barely 3.1%, offering little margin of safety at the current price.
AI Analysis
At ₹125.45, Kirl. Electric has a market cap of ₹594 Cr. The headline numbers look exciting: sales up 26.45%, profit up 1000%, and a PEG ratio of 0.06. But a value investor learns to be suspicious of numbers that look too good. The 1000% profit growth is from a low base; the latest quarter shows sales of ₹151 Cr but net profit of just ₹4 Cr. That is a thin 2.6% margin. The trailing P/E of 32.06 means I am paying ₹32 for every ₹1 of earnings, and P/B of 6.01 against a book value of ₹20.86 is far from bargain territory. With ROE of 12.77% and ROCE of 8.35%, this business is not yet earning a return that justifies six times book. Debt/equity of 0.83 is moderate, but no dividend means I cannot be paid to wait. Piotroski F-score of 7/9 is encouraging; it suggests the company is healing financially. Promoter holding of 49.59% is also a positive. But there is no durable moat visible in these numbers, and the FairStock score of 37/100 says mixed. Graham would ask for margin of safety; at over 32 times earnings, I don't see it. This is a possible turnaround, not a proven compounder. I'd wait for stronger margins, lower leverage, and consistent earnings before committing.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer