KPI Green Energy (KPIGREEN)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• Sales growth of 44.62% and profit growth of 37.22% demonstrate strong execution in the green power segment.
• PEG of 0.43 suggests the stock is reasonably valued relative to its earnings growth.
• ROE of 19.21% and ROCE of 17.50% indicate efficient use of shareholder capital.
• Piotroski F-Score of 7/9 reflects solid financial fundamentals.
• Promoter holding of 49.49% shows commitment, though not controlling majority.

Concerns

• Price-to-book of 5.01 leaves a thin margin of safety for a Graham-style investor.
• Debt-to-equity of 0.88 means the balance sheet is moderately leveraged.
• Dividend yield of only 0.17% offers no income cushion.
• FairStock Score of 55/100 rates the company as merely 'steady', not compelling.

AI Analysis

I am often asked about companies like KPI Green Energy. The business is straightforward: generating power through green energy, a sector with strong tailwinds. Sales grew 44.62% last year, and net profit rose 37.22%. That kind of momentum is rare. Yet I must anchor myself in numbers, not stories. At ₹459.75, the market cap is ₹7,620 Cr. The P/E is 17.78, which is not expensive for someone compounding profits at roughly 37% annually. In fact, the PEG ratio of 0.43 means you are paying far less than the growth rate suggests - the kind of bargain Graham would notice if it is sustainable. However, the price-to-book of 5.01 tells me I am paying over five times net worth. That erodes the margin of safety. The book value is only ₹91.81. The company earns a respectable ROE of 19.21% and ROCE of 17.50%, so management is not destroying capital. Debt-to-equity of 0.88 is tolerable but not ideal. The Piotroski score of 7 out of 9 indicates decent financial health. The dividend yield is just 0.17%, so you are not getting paid to wait. Promoters hold 49.49%, which aligns their interests with mine, but only partially. The latest quarter shows sales of ₹663 Cr and net profit of ₹126 Cr, maintaining the growth narrative. But the FairStock Score is only 55 out of 100, a 'steady' rating rather than a compelling opportunity. I would not rush to buy at this price. If the company can keep growing without adding excessive debt, and if the price falls closer to my comfort zone, it would be a genuine candidate. For now, I watch and wait.

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