Kennametal India (KENNAMET)

FairStock Score: 29/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I put on my Graham lens first: Kennametal India at ₹3513.30 sells for 9.63 times book value of ₹365, with a P/E of 55.86. That is not a bargain. The market cap is ₹7,722 Cr, and the business earns ROE of 14.29% and ROCE of 17.55%. Debt/equity is 0.00, a genuine strength; a debt-free industrial company can survive cycles. Promoter holding is 75%, aligning parent and minority interests, though it also leaves a small float. The latest quarter showed sales of ₹334 Cr and net profit of ₹24 Cr, and recent growth is spectacular: sales up 48.10% and profit up 184.10%. But the five-year revenue CAGR is only 13.25%, so I suspect this is an industrial cyclical enjoying a strong upswing, not a smooth compounder. Piotroski F-score of 7/9 suggests improving fundamentals, and dividend yield of 1.09% offers little income. The PEG of 3.63 tells me growth is already priced in. FairStock score of 29/100 labels it risky. The 52-week range of ₹2090.05 to ₹5110.35 shows how violently the market can re-rate this stock. As Buffett, I want a moat and margin of safety. The figures alone do not reveal a durable moat, and at 55.86 times earnings I am paying a lot for cyclical profits. I would watch ROCE, profit growth sustainability, and whether the 5-year CAGR catches up to the latest quarter. Until price meets value, this is a watchlist candidate, not a buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer