KSB Ltd.
ISIN: INE999A01023 • Market Cap: ₹14,055 Cr
The 5-Pillar Quality Audit for KSB Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (12.7%), Return on Capital Employed (21.3%), and equity compounding (16.1%).
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 (6.6%) and 3Y PAT CAGR (3.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 57.25 vs PEG of 3.60 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 69.8%, backed by 15.9% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 21.3%)
KSB Ltd. generates exceptional return on capital employed of 21.3%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
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 KSB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare KSB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| KSB Ltd. (KSB)Current | 70/100 | ₹14,055 Cr | 57.25 | 21.3% | 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: KSB Ltd.
Q:What is the 5-Pillar Fundamental Score for KSB Ltd. (KSB)?
KSB Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (77/100), Financial Health (87/100), Growth (48/100), Valuation (48/100), and Ownership Quality (82/100).
Q:Is KSB fundamentally strong for long-term investment?
Yes, KSB exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 16.1% and a debt-to-equity ratio of 0.00.
Q:Does KSB pass the Coffee Can Investing filter?
Yes! KSB satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does KSB compare against other Capital Goods peers?
Within India's Capital Goods sector, KSB trades at a P/E of 57.25 and generates an ROCE of 21.3%. Compare its 5-Pillar score of 70/100 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.