Kalyani Forge Limited (KALYANIFRG) AI Stock Analysis

• Market Cap: ₹2.03B
• Dividend Yield: 0.62%
• Average Volume (3M): 713.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 0.76%
• EPS Growth: 17.16%
• Country: IN
• Employees: 851
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): -0.33
• 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: 62 Neutral
• Price Target: ₹590.00 ▼(-6.35% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by mixed fundamentals: improved profitability is offset by negative free cash flow and balance-sheet leverage risk. Technicals are supportive with price above key moving averages and positive MACD, but valuation is a notable headwind due to a high P/E and low dividend yield.

Positive Factors

Margin sustainability

Improved gross and net margins indicate durable operational efficiency and pricing power in forging and machining operations. Sustained margins support reinvestment in capacity and R&D, help absorb raw-material swings, and underpin long-term profitability even through cyclical demand phases.

Robust revenue growth

Very strong revenue growth reflects expanding order intake or higher-value product mix, which can crystallize into lasting scale benefits: better capacity utilization, stronger bargaining leverage with suppliers, and higher absolute contribution to fixed-cost absorption over multiple quarters.

Niche manufacturing capabilities

Specialized precision forging and downstream machining require metallurgy expertise, tooling investment, and quality systems — creating high technical barriers to entry. These capabilities support sticky OEM relationships, higher value‑added sales, and defensible margin profiles over time.

Negative Factors

Negative free cash flow

Persistent negative free cash flow reduces internal funding for capex, working capital and debt reduction, forcing reliance on external financing. Over months this increases refinancing and interest rate sensitivity, limits strategic investments, and constrains balance‑sheet flexibility.

Balance-sheet leverage risk

A meaningful share of assets funded by debt raises vulnerability to cyclical revenue downturns and interest-rate rises. For a capital‑intensive manufacturer, leverage can magnify stress on covenants and cash flow, limiting the company's ability to absorb prolonged demand weakness.

Earnings volatility

Negative EPS growth despite revenue gains suggests margin mix shifts, rising financing costs, or non‑operating impacts. Continued EPS volatility undermines reinvestment capacity and investor confidence, and may indicate uneven translation of top‑line gains into sustainable per‑share profitability.

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 primarily makes money by manufacturing and selling forged and machined metal components to OEMs and tiered suppliers in sectors such as automotive and industrial engineering. Revenue is generated from (1) product sales of closed-die/precision forgings and finished/semi-finished parts, where the company charges per component or per batch based on material grade, forging complexity, and value-added processing (e.g., machining, heat treatment, surface finishing); and (2) value-added services bundled into supply contracts, such as machining to drawing specifications, testing/inspection, and just-in-time/sequence deliveries that increase the realizable price versus raw forgings. Earnings are influenced by factors including customer production volumes (e.g., vehicle/industrial output cycles), the company’s ability to pass through changes in raw material costs (primarily steel/alloy inputs) under contractual pricing terms, capacity utilization at forging and machining facilities, and the mix shift toward higher value-added finished components versus basic forgings. Specific details on customer concentration, contract structures, export share, or named long-term partnerships are not available: null.

Kalyani Forge Limited Financial Statement Overview

Summary

Profitability has improved with strong gross margin and better net profit margin, but the balance sheet shows meaningful reliance on debt financing and free cash flow has been negative, which raises funding and reinvestment risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.37B	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	270.14M	265.12M	173.17M	152.62M	193.79M	133.59M
Net Income	76.01M	83.15M	45.50M	-1.84M	31.33M	-17.60M
Balance Sheet
Total Assets	2.59B	2.30B	2.05B	1.81B	1.83B	1.83B
Cash, Cash Equivalents and Short-Term Investments	31.40M	29.09M	59.34M	10.29M	18.66M	1.03M
Total Debt	908.00M	715.68M	609.12M	381.93M	264.88M	273.21M
Total Liabilities	1.67B	1.41B	1.23B	1.03B	805.15M	829.10M
Stockholders Equity	920.17M	896.87M	820.07M	777.02M	1.03B	1.00B
Cash Flow
Free Cash Flow	-137.42M	-95.58M	-159.55M	-101.45M	64.52M	60.05M
Operating Cash Flow	-24.96M	147.92M	100.04M	-25.00M	111.22M	74.22M
Investing Cash Flow	-112.17M	-243.50M	-258.49M	-58.45M	-41.37M	-12.64M
Financing Cash Flow	141.23M	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 above the 20-day moving average (MA) of 596.04, above the 50-day MA of 605.69, and below the 200-day MA of 675.55, indicating a bearish trend. The MACD of -14.62 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 44.39 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	₹314.69B	49.42	―	0.65%	7.34%	2.27%
MMFL	72 Outperform	₹20.65B	24.91	―	1.07%	-4.47%	-17.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KALYANIFRG	62 Neutral	₹2.03B	-483.49	―	0.62%	0.76%	17.16%
RKFORGE	54 Neutral	₹90.24B	174.30	―	0.38%	-4.73%	-19.52%
GUJAPOLLO	47 Neutral	₹5.26B	204.12	―	0.48%	4.69%	-124.17%

Kalyani Forge Limited Corporate Events

Kalyani Forge Shareholders Approve Appointment of Independent Director via Postal Ballot

Kalyani Forge Limited has disclosed the results of a postal ballot in which shareholders approved the appointment of Mr. Viswanathan Swaminathan as an independent director on the company’s board. The resolution, conducted through remote e-voting between February 4 and March 5, 2026, was passed with the requisite majority, and the detailed voting results and scrutinizer’s report have been made available on the company’s website and the e-voting platform.

The addition of an independent director through a shareholder-approved postal ballot underscores the company’s adherence to corporate governance norms under SEBI’s listing regulations and the Companies Act, 2013. This board strengthening move is likely aimed at enhancing oversight and aligning governance practices with regulatory expectations, which may be viewed positively by investors and other stakeholders.

Kalyani Forge Announces Resignation of Company Secretary and Compliance Officer

Kalyani Forge Limited has announced the resignation of its Company Secretary and Compliance Officer, Ms. Aishwarya Parwal, effective from the close of business on February 21, 2026. The company stated that the key managerial personnel is stepping down due to relocation and other unavoidable personal reasons, and has notified the stock exchanges in line with SEBI disclosure requirements, signaling a forthcoming change in its corporate governance and compliance leadership.

The board, through Executive Chairperson Rohini G. Kalyani, has formally communicated this leadership transition to both BSE and NSE, emphasizing adherence to regulatory protocols under the SEBI Listing Regulations. While no successor has been named in the disclosure, the change in a critical compliance role may draw attention from investors and regulators until a new Company Secretary and Compliance Officer is appointed, given the importance of this position in maintaining listing and governance standards.