Kennametal India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Kennametal India Ltd trades at ₹2,796, in a confirmed uptrend and 13 weeks into that stage. That is +10.7% against its own 200-day average. It sits at 71% of a 52-week range of ₹1,948 to ₹3,137. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is in a confirmed uptrend — week 13 of stage 2, confirmed. At ₹2,796 it trades +10.7% versus its 200-day average and sits at 71% of its 52-week range (₹1,948–₹3,137).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +302% while the NIFTY 500 moved +280% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (4 weeks and counting; last ahead the week of 2026-06-25) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 74th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Kennametal India Ltd trades at 52.2× P/E, at the pricey end of its own range (74th percentile). Its long-run median P/E is 44.4×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 52.2× is at the pricey end of its own range (74th percentile), against a long-run median of 44.4× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −6.9% against a +20.6% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +17.5%/yr price move, ~+20.9%/yr came from earnings growth and ~−3.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Kennametal India Ltd reads as mixed on its fundamental arc. Mixed — profit and EPS growth are shrinking while ROCE holds at 19.1% — falling growth against firm returns, so no single stage word fits yet. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

56.2/100 — rank 6 of 19 in Castings, Forgings & Fastners · 96% evidence confidence

Kennametal India Ltd scores 56.2 out of 100 against the 19 companies it is compared with in Castings, Forgings & Fastners, ranking 6. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 18.9 + 18.5 + 9.7 + 9.1 = 56.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Kennametal India Ltd reported ₹334 Cr of revenue in the Dec 25 quarter, +16.4% year on year. That is the 8th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.5% a year. The last full year, FY25, came in at ₹1,170 Cr. The last four reported quarters add to ₹1,243 Cr.

Kennametal India Ltd reported ₹334 Cr of revenue in the Dec 25 quarter, +16.4% year on year. That is the 8th straight quarter of year-on-year growth. Over 10 years it has compounded at 7.5% a year. The last full year, FY25, came in at ₹1,170 Cr. The last four reported quarters add to ₹1,243 Cr.

FY25 revenue came in at ₹1,170 Cr (+6.4% on the year), capping 10 years at 7.5% compound. The latest quarter (Dec 25) printed ₹334 Cr, +16.4% year on year — the 8th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +10.2% growth against the decade's 7.5% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +10.2% over the last 4 quarters against +8.1%/yr over the last 8 — stabilising; TTM profit −4.3% vs +19.5%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 13.0% this quarter (−1.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Kennametal India Ltd's operating margin is 13.0% in the Dec 25 quarter, −1.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 8.0% to 18.0%. The current quarter sits inside that band.

Kennametal India Ltd's operating margin is 13.0% in the Dec 25 quarter, −1.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 8.0% to 18.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 13.0%, −1.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 8.0%–18.0%.

🚨 Why the margin moved: operating margin went −1.5 pp year on year while gross margin went −2.3 pp — the loss came mostly from the gross line: input costs and pricing.

→ Margins slipped — did that reach the bottom line? Next: profit +9.1% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Kennametal India Ltd earned ₹24.0 Cr of net profit in the Dec 25 quarter, +9.1% year on year. It is the 3rd consecutive quarter of growth. Full-year FY25 profit was ₹103 Cr. The 10-year compound rate is 11.7%. That is 7.2% of the quarter's revenue. The same quarter a year earlier earned ₹22.0 Cr.

Kennametal India Ltd earned ₹24.0 Cr of net profit in the Dec 25 quarter, +9.1% year on year. It is the 3rd consecutive quarter of growth. Full-year FY25 profit was ₹103 Cr. The 10-year compound rate is 11.7%. That is 7.2% of the quarter's revenue. The same quarter a year earlier earned ₹22.0 Cr.

Dec 25 profit was ₹24.0 Cr, +9.1% year on year — the 3rd consecutive quarter of growth. On the full year, FY25 printed ₹103 Cr (−6.4%), and the 10-year compound rate is 11.7%.

Why profit moved: revenue contributed +16.4% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −0.1% vs revenue +10.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 125% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 125% of Kennametal India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY25 that was ₹145 Cr of operating cash against ₹103 Cr of profit. After ₹25.0 Cr of capital spending, ₹120 Cr was left as free cash.

FY25: operating cash of ₹145 Cr against reported profit of ₹103 Cr, leaving free cash of ₹120 Cr after ₹25.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 125% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 125%: the cash cycle tightened 20 days between FY20 and FY25 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 166-day cycle and ₹118 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Kennametal India Ltd's cash conversion cycle runs 166 days in FY25, down from 186 days in FY20. Capital spending ran ₹118 Cr over the last 3 years. At FY25 sales of ₹1,170 Cr each day of that cycle holds about ₹3.2 Cr, so roughly ₹532 Cr sits inside the business at any moment.

FY25: debtors at 59 days, inventory at 172 days — roughly 5.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 166 days, tighter than FY20's 186.

The full loop: cash goes out to suppliers and production on day 0; stock waits 172 days to sell; customers pay about 59 days after that; and suppliers themselves are paid at 65 days — netting out to the 166-day cycle.

In money terms: at FY25 sales of ₹1,170 Cr, each day of the cycle holds about ₹3.2 Cr — so the 166-day loop keeps roughly ₹532 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹118 Cr over the last 3 fiscal years against ₹129 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹8.0 Cr (FY25) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 18% and the ROIC − WACC spread is +8.4 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Kennametal India Ltd earns a ROCE of 18% in FY25. That is up from a trough of 8% in FY16. Return on invested capital clears the cost of that capital by +8.4 percentage points, so growth here adds value rather than only size. The wiring behind it is 8.8% net margin on 1.21× asset turns.

FY25 ROCE is 18%, recovered from a FY16 trough of 8% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY25): 8.8% net margin × 1.21× asset turns × 1.29× balance-sheet leverage ≈ 13.7% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 20.4% − 12.0% = a +8.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.00.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Kennametal India Ltd carries total debt of ₹2.0 Cr against shareholder equity of ₹802 Cr as of Mar 26, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.00 in FY24 to 0.00 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹2.0 Cr against shareholder equity of ₹802 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.00 (FY24) to 0.00 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Kennametal India Ltd moved a full percentage point over the last two years — the register is quiet. Domestic institutions moved −0.2 points over the same window, to 13.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −0.8 points over 8 quarters to 0.2%; Domestic institutions: −0.2 points over 8 quarters to 13.3%; Promoters: +0.0 points over 8 quarters to 75.0%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Kennametal India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions