Mehabe score: 6 G Factor: 6 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 5.
Description
KFIL, incorporated in 1991, is a part of the Pune-based Kirloskar Group. KFIL manufactures pig iron and ferrous castings
such as cylinder blocks, cylinder heads, and transmission parts and different types of housings required by automobile, tractor and diesel engine industries. It is one of the leading players in foundry-grade pig iron manufacturing and ferrous castings in the domestic market.
Main Points
Product Portfolio
The company has presence across 2 verticals, Pig Iron & Castings. It manufactures Foundry grade, S.G grade & Basic grade of pig iron & it manufactures Water jacket blocks, non-water jacket blocks, cylinder heads & housings under its castings division. #
It’s casting division derives ~90% of its sales from commercial vehicle and tractor segments, which are both exposed to the inherent demand cyclicality.Site:KIRLFERMain Symbol:KIRLFER
Stock trades at 287.0, above its 50dma 232.47. It also trades above its 200dma 171.46. The stock remains bullish on techicals
The 52 week high is at 292.00 and the 52week low is at 66.60
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 39.23% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 25.16%
Weakness
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Competition
– The industry trades at a mean P/E of 14.5x. Tata Metaliks trades at the industry’s max P/E of 15.89x. KIRLFER trades at a P/E of 13.1x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. KIRLFER has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 12.0%. The max 1- month return was given by Mideast Int. Stl: a return of 23.64 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 749.0 cr compared to Rs 448.0 cr for period ended Mar 2020, a rise of 67.2%
Operating Profits reported at Rs 196.0 cr for period ended Mar 2021 vis-vis 75.0 for period ended Mar 2020 .
Operating Margins expanded 942.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 9.78 compared to Rs 8.57 for previous quarter ended Dec 2020 and Rs 4.17 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2038.0 cr for period ended Mar 2021 vis-vis sales of Rs 1850.0 cr for the period ended Mar 2020, a growth of 9.2%. The 3 year sales cagr stood at 4.9%.
Operating margins expanded to 23.0% for period ended Mar 2021 vis-vis 12.0% for period ended Mar 2020, expansion of 1100.0 bps.
Net Profit reported at Rs 302.0 cr for period ended Mar 2021 vis-vis sales of Rs 112.0 cr for the period ended Mar 2020, rising 62.9%.
Company recorded a healthy Net Profit CAGR of 99.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 285.0 cr for period ended Mar 2021 vis-vis Rs 204.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 35.0% compared to 24.0% over the last 3 Years. – The stock has given a return of 305% on a 1 Year basis vis-vis a return of 47% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is 168% vis-vis a compounded profit growth of 98% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.11% vis-vis 0.15% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 26.91% vis-vis 26.58% for Dec 2020
Conclusion
– has reduced debt.
– has delivered good profit growth of 39.23% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 25.16% –
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 232.47 and is trading at 287.0, thus bullish price action wise.
