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Kirloskar Brothers Ltd logo

Kirloskar Brothers Ltd

NSE: KIRLOSBROS BSE: 500241

1339.10

(-6.13%)

Mon, 06 Apr 2026, 07:09 am

Kirloskar Brothers Analysis

dividend

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Pros

  • Dividends paid are well covered by earnings (3.6x coverage).
  • Kirloskar Brothers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Kirloskar Brothers's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Kirloskar Brothers's earnings are expected to exceed the low risk growth rate next year.
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Cons

    health

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    Pros

    • Kirloskar Brothers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Kirloskar Brothers is profitable, therefore cash runway is not a concern.
    • Kirloskar Brothers is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (55.5%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 3.7x debt.
    • Kirloskar Brothers's cash and other short term assets cover its long term commitments.
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    Cons

    • The level of debt compared to net worth has increased over the past 5 years (35% vs 58.1% today).
    • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
    • Kirloskar Brothers's level of debt (58.1%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Kirloskar Brothers management team is about average.
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    Cons

    • The average tenure for the Kirloskar Brothers board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Kirloskar Brothers is covered by less than 3 analysts.
      • Kirloskar Brothers has significant price volatility in the past 3 months.

      past

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      Pros

      • Kirloskar Brothers's 1-year earnings growth exceeds its 5-year average (2038.3% vs 9.9%)
      • Kirloskar Brothers's year on year earnings growth rate has been positive over the past 5 years.
      • Kirloskar Brothers has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Kirloskar Brothers's earnings growth has exceeded the IN Machinery industry average in the past year (2038.3% vs -7.2%).
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      Cons

      • Kirloskar Brothers used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
      • Kirloskar Brothers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • Kirloskar Brothers is good value based on assets compared to the IN Machinery industry average.
      • BSE:500241 is up 15.3% outperforming the Machinery industry which returned 8.3% over the past month.
      • BSE:500241 is up 15.3% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Kirloskar Brothers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Kirloskar Brothers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Kirloskar Brothers is overvalued based on earnings compared to the IN Machinery industry average.
      • Kirloskar Brothers is overvalued based on earnings compared to the India market.
      • 500241 underperformed the Machinery industry which returned -23.7% over the past year.
      • 500241 underperformed the Market in India which returned -14.5% over the past year.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800