Kirloskar Oil Engines Intrinsic Value

KIRLOSENG • Industrial Products
Current Stock Price
₹1398.30
Primary Intrinsic Value
₹536.64
Market Cap
₹4055 Cr
-24.6% Downside
Median Value
₹1054.14
Value Range
₹419 - ₹2797
Assessment
Trading Above Calculated Value
Safety Margin
-32.6%

KIRLOSENG Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹536.64 ₹429.31 - ₹643.97 -61.6% EPS: ₹44.72, Sector P/E: 12x
Book Value Method asset ₹1054.14 ₹948.73 - ₹1159.55 -24.6% Book Value/Share: ₹1054.14, P/B: 1.0x
Revenue Multiple Method revenue ₹2163.86 ₹1947.47 - ₹2380.25 +54.7% Revenue/Share: ₹2704.83, P/S: 0.8x
EBITDA Multiple Method earnings ₹2796.60 ₹2516.94 - ₹3076.26 +100.0% EBITDA: ₹1576.00Cr, EV/EBITDA: 6x
PEG Ratio Method growth ₹419.49 ₹377.54 - ₹461.44 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹419.49 ₹377.54 - ₹461.44 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹2796.60 ₹2516.94 - ₹3076.26 +100.0% ROE: 20.8%, P/E Multiple: 16x
Graham Defensive Method conservative ₹1029.89 ₹926.90 - ₹1132.88 -26.3% EPS: ₹44.72, BVPS: ₹1054.14
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

KIRLOSENG Intrinsic Value Analysis

What is the intrinsic value of KIRLOSENG?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Kirloskar Oil Engines (KIRLOSENG) is ₹1054.14 (median value). With the current market price of ₹1398.30, this represents a -24.6% variance from our estimated fair value.

The valuation range spans from ₹419.49 to ₹2796.60, indicating ₹419.49 - ₹2796.60.

Is KIRLOSENG undervalued or overvalued?

Based on our multi-method analysis, Kirloskar Oil Engines (KIRLOSENG) appears to be trading above calculated value by approximately 24.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.10 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 20.8% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 20.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.75x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-739 Cr ₹-1,000 Cr Negative Cash Flow 3/10
March 2024 ₹-469 Cr ₹-524 Cr Negative Cash Flow 3/10
March 2023 ₹-920 Cr ₹-993 Cr Negative Cash Flow 3/10
March 2022 ₹-1,041 Cr ₹-1,043 Cr Negative Cash Flow 3/10
March 2021 ₹-16 Cr ₹-249 Cr Negative Cash Flow 3/10