Kalyani Forge Limited (KALYANIFRG) AI Stock Analysis

• Market Cap: ₹2.24B
• Dividend Yield: 0.62%
• Average Volume (3M): 713.00
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.79
• Revenue Growth: 0.76%
• EPS Growth: 17.16%
• Country: IN
• Employees: 851
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 5.91
• Shares Outstanding: 3,638,000
• 10 Day Avg. Volume: 1,785
• 30 Day Avg. Volume: 713
• PEG Ratio: 0.27
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -19.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ₹646.00 ▲(2.54% Upside)

Kalyani Forge Limited's overall stock score reflects a mixed financial performance with improved profitability but significant challenges in cash flow and debt management. The technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Profitability

Improved profitability with strong margins indicates efficient operations and pricing power, supporting sustainable long-term growth.

Revenue Growth

Stable revenue growth reflects consistent demand for products and effective market positioning, crucial for long-term business expansion.

Market Position

Diverse sector presence in automotive, industrial, and construction markets provides resilience and opportunities for cross-sector growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests difficulties in generating cash from operations, which can hinder investment and debt reduction efforts.

Debt Management

Moderate debt levels require careful management to avoid financial strain, impacting long-term financial stability and growth capacity.

Operational Efficiency

Improving operational efficiency is essential to enhance profitability and support sustainable growth amid competitive pressures.

Kalyani Forge Limited Business Overview & Revenue Model

Company Description

Kalyani Forge Limited, an engineering company, engages in the manufacture and sale of forged, machined, and assembled products for automotive; construction; power generation; marine; industrial good; and railway industries in India. The company offers engine parts, including connecting rods, crank shafts, cam shafts, retainer valves, cross head valves, injector clamps, rocker arms, balance weights, and cam lobes; and chassis systems, such as idler arms, control arms, steering knuckles, FS arms, and brackets. It also provides turbocharger parts comprising nozzle rings and pipe cast flanges; warm and cold forged parts for fluid flywheels, and wet double clutch; and driveline products consisting of tulips, inner races, tripods, spiders, outer races, yoke shafts, and double yokes. In addition, the company offers steering and suspension products, including stub axles, tie-rod ends, suspension ball joints, universal joints, and pitman arms; and various cold and hot forged parts for industrial applications, such as power tools, conveyors, and compressors. It also exports its products. The company was incorporated in 1979 and is based in Pune, India.

How the Company Makes Money

Kalyani Forge Limited generates revenue primarily through the sale of forged components to a diverse range of industries. Its revenue model is based on contract manufacturing, where the company collaborates with original equipment manufacturers (OEMs) and other businesses to supply custom-engineered forged products. Key revenue streams include long-term contracts with major automotive manufacturers, which provide a stable income source, and one-time orders for specialized components. The company also benefits from partnerships with other firms in the aerospace and industrial sectors, enhancing its market reach and facilitating growth. Additionally, Kalyani Forge invests in research and development to innovate and improve its product offerings, ensuring competitiveness and relevance in the market.

Kalyani Forge Limited Financial Statement Overview

Summary

Kalyani Forge Limited shows stable revenue growth and improved net profit margins, but faces challenges with negative free cash flow and a moderate debt-to-equity ratio. Operational efficiencies and debt management are crucial for sustainable growth.

Income Statement

Kalyani Forge Limited shows a stable revenue growth with a slight increase in total revenue from the previous year. The gross profit margin is strong, and the net profit margin has improved significantly from the previous periods, indicating enhanced profitability. The EBITDA margin is healthy, but there's a need to improve the EBIT margin to sustain long-term growth.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which suggests manageable debt levels, but there is room for improvement. The return on equity is positive, indicating the company is effectively using its equity base. However, the equity ratio shows that a significant portion of assets is financed by debt, which could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis indicates challenges with free cash flow, which has been negative, highlighting potential issues in generating cash from operations. The operating cash flow to net income ratio is reasonable, but the company needs to focus on improving its free cash flow generation to support future investments and reduce dependency on financing activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.44B	2.37B	2.36B	2.65B	2.46B	1.80B
Gross Profit	1.19B	767.77M	696.85M	658.91M	185.55M	83.01M
EBITDA	281.88M	265.12M	173.17M	152.62M	193.79M	133.59M
Net Income	93.74M	83.15M	45.50M	-1.84M	31.33M	-17.60M
Balance Sheet
Total Assets	0.00	2.30B	2.05B	1.81B	1.83B	1.83B
Cash, Cash Equivalents and Short-Term Investments	15.48M	29.09M	59.34M	10.29M	18.66M	1.03M
Total Debt	0.00	715.68M	609.12M	381.93M	264.88M	273.21M
Total Liabilities	-896.87M	1.41B	1.23B	1.03B	805.15M	829.10M
Stockholders Equity	896.87M	896.87M	820.07M	777.02M	1.03B	1.00B
Cash Flow
Free Cash Flow	0.00	-95.58M	-159.55M	-101.45M	64.52M	60.05M
Operating Cash Flow	0.00	147.92M	100.04M	-25.00M	111.22M	74.22M
Investing Cash Flow	0.00	-243.50M	-258.49M	-58.45M	-41.37M	-12.64M
Financing Cash Flow	0.00	96.34M	157.34M	75.08M	-52.21M	-74.93M

Kalyani Forge Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 630.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KALYANIFRG, the sentiment is Negative. The current price of 630 is below the 20-day moving average (MA) of 639.52, below the 50-day MA of 658.81, and below the 200-day MA of 682.43, indicating a bearish trend. The MACD of -9.89 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KALYANIFRG.

Kalyani Forge Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹285.96B	46.66	―	0.65%	7.34%	2.27%
MMFL	72 Outperform	₹19.37B	17.47	―	1.07%	-4.47%	-17.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RKFORGE	54 Neutral	₹90.71B	30.02	―	0.38%	-4.73%	-19.52%
KALYANIFRG	53 Neutral	₹2.24B	29.51	―	0.62%	0.76%	17.16%
GUJAPOLLO	47 Neutral	₹4.67B	-158.66	―	0.48%	4.69%	-124.17%

Kalyani Forge Limited Corporate Events

Kalyani Forge Reports Financial Results and Strategic Board Changes

Kalyani Forge Limited has announced its unaudited standalone financial results for the half year and quarter ending September 30, 2025, which were approved by the Board of Directors and reviewed by the Audit Committee. The company also introduced new policies on materiality and related party transactions and appointed Mr. Vishwanathan Swaminathan as an Additional Independent Director, effective February 2026, indicating strategic governance enhancements.