KPI Green Energy Ltd.
ISIN: INE542W01025 • Market Cap: ₹6,088 Cr
The 5-Pillar Quality Audit for KPI Green Energy Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (35.8%), Return on Capital Employed (13.1%), and equity compounding (13.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.47 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (63.0%) and 3Y PAT CAGR (65.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 13.30 vs PEG of 0.42 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 49.4%, backed by 8.8% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 63.0%)
Revenue has expanded at 63.0% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 65.0%)
Net earnings have compounded at 65.0% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 13.30)
Trading at a P/E multiple of 13.30, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Power)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Power space.
Quantitative Strategy Eligibility
Checking KPIGREEN 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 80/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Power Sector Peer Comparison
Compare KPIGREEN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| KPI Green Energy Ltd. (KPIGREEN)Current | 80/100 | ₹6,088 Cr | 13.30 | 13.1% | 0.47 | — |
| Adani Power Ltd. (ADANIPOWER) | 70/100 | ₹3.93 Lakh Cr | 27.56 | 15.7% | 0.82 | View |
| NTPC Ltd. (NTPC) | 69/100 | ₹3.25 Lakh Cr | 11.69 | 8.3% | 1.32 | View |
| Power Grid Corporation of India Ltd. (POWERGRID) | 64/100 | ₹2.44 Lakh Cr | 15.36 | 10.6% | 1.47 | View |
| Adani Green Energy Ltd. (ADANIGREEN) | 56/100 | ₹2.12 Lakh Cr | 119.11 | 8.3% | 5.24 | View |
| Adani Energy Solutions Ltd. (ADANIENSOL) | 66/100 | ₹1.88 Lakh Cr | 64.52 | 8.7% | 2.02 | View |
Frequently Asked Questions: KPI Green Energy Ltd.
Q:What is the 5-Pillar Fundamental Score for KPI Green Energy Ltd. (KPIGREEN)?
KPI Green Energy Ltd. has a RupeeTools Fundamental Score of 80/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (74/100), Financial Health (72/100), Growth (99/100), Valuation (95/100), and Ownership Quality (60/100).
Q:Is KPIGREEN fundamentally strong for long-term investment?
Yes, KPIGREEN exhibits solid fundamental strength with a 80/100 score, driven by a return on equity of 13.2% and a debt-to-equity ratio of 0.47.
Q:Does KPIGREEN pass the Coffee Can Investing filter?
No. KPIGREEN does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does KPIGREEN compare against other Power peers?
Within India's Power sector, KPIGREEN trades at a P/E of 13.30 and generates an ROCE of 13.1%. Compare its 5-Pillar score of 80/100 against top sector peers like Adani Power Ltd. (70/100), NTPC Ltd. (69/100).
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.