Case study

KENNAMET

Kennametal India

Mixed signals
0Score

Kennametal India (KENNAMET) Stock Analysis & Case Study

Is KENNAMET a good buy? The data-driven verdict.

Kennametal India (KENNAMET) trades at ₹3,139,on the numbers it mixed signals, a Downstox Snapshot Score of 52/100.

On the numbers, Kennametal India (KENNAMET) mixed signals, a Downstox Snapshot Score of 52/100, weighing expensive at 59.0× earnings, ROE of 18.4%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

KENNAMET fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹6,906 Cr
Current price
₹3,139
P/E ratio
59.0×
P/B ratio
10.68×
Book value
₹294
Dividend yield
1.27%
ROCE
24.6%
ROE
18.4%
Piotroski F-Score
4/9

Is KENNAMET overvalued? KENNAMET P/E vs its sector

KENNAMET's P/E of 59.0× sits above the sector peer median of 15.9×, so on earnings it screens richer than peers, while its 1.27% dividend yield is below the peer median of 1.65%.

KENNAMET P/E
59.0×
Peer median P/E
15.9×
KENNAMET div yield
1.27%
Peer median yield
1.65%

The bull case for KENNAMET

  • High return on equity (18.4%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
  • Strong ROCE (24.6%) shows the core business earns well above its cost of capital.

The bear case & risks

  • A rich 59.0× P/E leaves a thin margin of safety if growth slows.
  • A steep 10.7× price-to-book means most of the value is intangible/expectations, not assets on the books.

KENNAMET Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. KENNAMET scores 4/9,mixed financial health.

KENNAMET MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy KENNAMET with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
UpstoxCHEAPEST35.0%2.9×
Zerodha50.0%2.0×

Compare every broker on the KENNAMET MTF page.

KENNAMET vs peers,sector comparison

StockP/EDiv yieldMarket cap
KENNAMET (this stock)59.0×1.27%₹6,906 Cr
RELIANCE23.1×0.45%₹17.95L Cr
TCS14.7×3.01%₹7.69L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
INFY14.4×4.51%₹4.32L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr

About Kennametal India: sector, index & market-cap context

Kennametal India (KENNAMET) is a small-cap NSE-listed company, and a constituent of the Nifty 500 index group, with a market capitalisation of ₹6,906 Cr. See more Nifty 500 stocks.

How the KENNAMET Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Kennametal India's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

KENNAMET analysis, FAQs

Is Kennametal India (KENNAMET) a good buy?

On the numbers, Kennametal India (KENNAMET) mixed signals, a Downstox Snapshot Score of 52/100, weighing expensive at 59.0× earnings, ROE of 18.4%. This is a data snapshot for research, not investment advice.

Is KENNAMET overvalued or undervalued?

KENNAMET trades at 59.0× earnings versus a peer median of 15.9×, so it screens richer than its sector peers.

What is the bull case for KENNAMET?

High return on equity (18.4%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise. Strong ROCE (24.6%) shows the core business earns well above its cost of capital.

What are the risks in KENNAMET?

A rich 59.0× P/E leaves a thin margin of safety if growth slows. A steep 10.7× price-to-book means most of the value is intangible/expectations, not assets on the books.

More on KENNAMET