Kirloskar Pneumatic Company Ltd.
ISIN: INE811A01038 • Market Cap: ₹9,565 Cr
The 5-Pillar Quality Audit for Kirloskar Pneumatic Company Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.4%), Return on Capital Employed (27.7%), and equity compounding (20.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (—) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 36.38 vs PEG of 1.77 and Dividend Yield of 0.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 38.8%, backed by 36.4% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 27.7%)
Kirloskar Pneumatic Company Ltd. generates exceptional return on capital employed of 27.7%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 20.5%)
Shareholder equity compounds at a healthy 20.5%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (36.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 36.4%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking KIRLPNU against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 75/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare KIRLPNU directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Kirloskar Pneumatic Company Ltd. (KIRLPNU)Current | 75/100 | ₹9,565 Cr | 36.38 | 27.7% | 0.00 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Kirloskar Pneumatic Company Ltd.
Q:What is the 5-Pillar Fundamental Score for Kirloskar Pneumatic Company Ltd. (KIRLPNU)?
Kirloskar Pneumatic Company Ltd. has a RupeeTools Fundamental Score of 75/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (87/100), Financial Health (89/100), Growth (50/100), Valuation (63/100), and Ownership Quality (78/100).
Q:Is KIRLPNU fundamentally strong for long-term investment?
Yes, KIRLPNU exhibits solid fundamental strength with a 75/100 score, driven by a return on equity of 20.5% and a debt-to-equity ratio of 0.00.
Q:Does KIRLPNU pass the Coffee Can Investing filter?
No. KIRLPNU does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does KIRLPNU compare against other Capital Goods peers?
Within India's Capital Goods sector, KIRLPNU trades at a P/E of 36.38 and generates an ROCE of 27.7%. Compare its 5-Pillar score of 75/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.