Kirl. Brothers (KIRLOSBROS)

FairStock Score: 55/100 — STEADY

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

Key Financials

AI Analysis

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

I’m looking at Kirloskar Brothers as an industrial stalwart, not a fast grower. The numbers show a quality engine: ROE 19.07%, ROCE 27.59%, and debt/equity of only 0.10. A Piotroski F-Score of 7/9 and Altman Z-Score of 4.31 suggest the balance sheet is sound, while promoter holding of 65.95% keeps skin in the game. Sales grew 8.97%, profit grew 14.89%, and the latest quarter delivered ₹1,116 Cr of sales and ₹125 Cr of net profit. Free cash flow of ₹150 Cr is positive, but 5-year revenue CAGR of 7.46% tells me this is a steady, not spectacular, compounder. The moat likely comes from its pumps, compressors and diesel engines franchise, but the data don’t quantify market share or pricing power. At ₹1,905.50, market cap is ₹15,131 Cr. Valuation is my main worry: P/E 40.48, P/B 6.14, dividend yield only 0.37%, and PEG 9.96. The Graham Number is ₹545.93 and DCF intrinsic value is ₹480.33, giving a margin of safety of -189.93%. EV/EBITDA is -6.41, which looks unusual and needs checking. The 52-week range is ₹1,335.00–₹2,189.20. So Mr. Market is paying a premium for quality. I admire the ROCE, low debt and steady profits, but Graham would not buy without a margin of safety. Buffett might call it a good business, but at this price the expected return is fragile. I’d wait for either earnings to catch up or price to correct.

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