Kirloskar Electric Co. Ltd. (KECL) AI Stock Analysis

• Market Cap: ₹7.08B
• Dividend Yield: N/A
• Average Volume (3M): 10.64K
• Price to Earnings (P/E): 99.5
• Beta (1Y): 1.59
• Revenue Growth: -11.25%
• EPS Growth: -48.96%
• Country: IN
• Employees: 889
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.50
• Shares Outstanding: 66,414,070
• 10 Day Avg. Volume: 8,746
• 30 Day Avg. Volume: 10,642
• PEG Ratio: -3.06
• Price to Book (P/B): 7.21
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 97.62
• 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: 49 Neutral
• Price Target: ₹104.00 ▼(-0.43% Downside)

Kirloskar Electric Co. Ltd. receives a low overall score due to several factors. The most significant is the bearish technical analysis, indicating strong downward momentum. The high P/E ratio suggests overvaluation, further impacting the score negatively. Financial performance is mixed, with leverage concerns and fluctuating profitability, contributing to the overall cautious outlook.

Positive Factors

Product Innovation

KECL's commitment to R&D fosters innovation, enabling the company to introduce new products and maintain competitiveness in the electrical equipment industry.

Revenue Diversification

Diversified revenue streams from product sales and services, along with government and private sector partnerships, provide KECL with a stable income base and reduce dependency on any single market.

Equity Improvement

Improving stockholders' equity indicates strengthening financial health, enhancing KECL's ability to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Leverage Concerns

High leverage can increase financial risk, limiting KECL's flexibility to navigate market changes and potentially impacting long-term sustainability.

Profitability Volatility

Volatile profitability and declining margins suggest challenges in cost management and operational efficiency, potentially affecting KECL's long-term financial performance.

Revenue Decline

A recent decline in revenue indicates potential market challenges or competitive pressures, which could hinder KECL's growth prospects if not addressed.

Kirloskar Electric Co. Ltd. Business Overview & Revenue Model

Company Description

Kirloskar Electric Co. Ltd. (KECL) is a leading Indian manufacturer of electrical equipment, specializing in the design, development, and production of a wide range of products including motors, generators, transformers, and control gear. Established in 1946, the company operates across various sectors such as industrial, power, and infrastructure, catering to both domestic and international markets. KECL is recognized for its innovation and quality in electrical engineering, contributing significantly to the country's electrical and power sectors.

How the Company Makes Money

Kirloskar Electric Co. Ltd. generates revenue through multiple key streams including the sale of electrical equipment such as AC and DC motors, alternators, and transformers. The company also earns income from providing services related to maintenance and repair of electrical systems. Significant partnerships with government and private sector projects enhance its revenue, particularly in the infrastructure and power generation sectors. Additionally, KECL benefits from long-term contracts and tenders, which provide a steady stream of income. The company's focus on research and development allows it to innovate and introduce new products, further diversifying its revenue sources.

Kirloskar Electric Co. Ltd. Financial Statement Overview

Summary

Kirloskar Electric Co. Ltd. exhibits a mixed financial profile. The income statement shows volatility in profitability, with declining gross and net profit margins. The balance sheet reflects leverage concerns despite improving equity, and cash flows provide some stability, yet underlying fluctuations indicate areas for improvement in cash management and operational efficiency.

Income Statement

The company's revenue has shown a mixed growth pattern, with a significant drop in the recent period. Gross profit margin has been declining, indicating pressure on cost management. Net profit margin also reflects volatility, while EBIT and EBITDA margins have weakened, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio, pointing to potential leverage risks. However, stockholders' equity has been improving, which is positive. The equity ratio is moderate, reflecting a balance between debt and equity financing. ROE shows inconsistency, highlighting fluctuating profitability.

Cash Flow

Cash flow management appears stable with consistent operating cash flow relative to net income. Free cash flow has shown growth, providing some financial flexibility. However, fluctuations in investing and financing cash flows suggest potential volatility in cash management strategies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.43B	5.44B	5.57B	4.74B	3.35B	2.78B
Gross Profit	1.19B	826.60M	835.90M	1.53B	873.77M	763.61M
EBITDA	312.00M	332.00M	447.48M	585.61M	1.03B	-96.96M
Net Income	22.30M	37.40M	140.79M	310.80M	673.89M	-481.05M
Balance Sheet
Total Assets	0.00	6.01B	6.40B	6.12B	6.14B	6.27B
Cash, Cash Equivalents and Short-Term Investments	291.50M	291.50M	211.50M	246.80M	475.12M	98.78M
Total Debt	0.00	1.16B	1.26B	1.33B	1.42B	1.79B
Total Liabilities	-1.15B	4.86B	5.58B	5.21B	5.38B	5.93B
Stockholders Equity	1.15B	1.15B	823.40M	918.30M	759.77M	335.00M
Cash Flow
Free Cash Flow	0.00	84.70M	340.79M	34.40M	343.12M	274.40M
Operating Cash Flow	0.00	123.60M	365.70M	73.00M	349.64M	299.08M
Investing Cash Flow	0.00	-38.80M	-21.20M	20.70M	1.03B	55.50M
Financing Cash Flow	0.00	-103.80M	-306.47M	-333.00M	-1.09B	-339.71M

Kirloskar Electric Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KECL, the sentiment is Negative. The current price of 104.45 is below the 20-day moving average (MA) of 111.41, below the 50-day MA of 115.98, and below the 200-day MA of 126.39, indicating a bearish trend. The MACD of -3.41 indicates Positive momentum. The RSI at 30.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KECL.

Kirloskar Electric Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	74 Outperform	₹17.73B	22.98	―	―	34.48%	40.61%
VOLTAMP	73 Outperform	₹74.52B	22.89	―	1.26%	15.87%	-4.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KIRLPNU	60 Neutral	₹69.64B	37.26	―	0.93%	6.51%	-1.61%
HIRECT	58 Neutral	₹31.89B	74.14	―	0.13%	35.05%	99.65%
LLOYDSENGG	58 Neutral	₹88.42B	71.84	―	0.47%	40.02%	26.77%
KECL	49 Neutral	₹7.08B	99.48	―	―	-11.25%	-48.96%

Kirloskar Electric Co. Ltd. Corporate Events

Kirloskar Electric Initiates Postal Ballot for Director’s Remuneration Revision

Kirloskar Electric Company Limited has announced a Postal Ballot to seek approval from its members for a special resolution regarding the revision of remuneration for Director Mr. Sanjeev Kumar Shivappa. The company is utilizing remote e-voting through Central Depository Services (India) Limited to facilitate this process, with the voting period scheduled between November 22 and November 21, 2025. The results of the Postal Ballot will be declared within two working days after the conclusion of the e-voting. This move reflects the company’s adherence to regulatory requirements and its commitment to transparent governance practices.