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Kennametal India Limited (505890) Fair Value & Analysis

Industrials · IN · Market cap ₹15.7B (≈ $165M) · ISIN INE717A01029

KI Kennametal India Limited 505890 · BSE
Price₹4,580
Fair Value₹795.93
Upside-82.6%
Quality68/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

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Strengths

Healthy Growth (revenue 5y +10.7 %/yr)
Low debt

Risks

!Trades 475% ABOVE our fair value of ₹795.93
!Thin margins · 3.9% net margin
!Trails peers (3/13)
!Narrow moat 28/100
Healthy Growth (revenue 5y +10.7 %/yr)
Thin margins · 3.9% net margin
Low debt
0.27% dividend yield
Trails peers (3/13)
Narrow moat 28/100
Evidence: High Range ₹579.45 – ₹994.91 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 16 days ago

A solid business, but trading 475% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (₹994.91). The favourable scenario is already priced in.
  • Solid but not exceptional quality (68/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹4,580 ₹941.75 Fair Value ₹795.93 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹941.75 – ₹4,580 · fair‑value band ₹579.45 – ₹994.91 · the ₹4,580 price screens above the ₹795.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Kennametal India Limited (505890) currently trades at ₹4,580, while our model-based Fair Value estimate is ₹795.93, implying the stock looks roughly 82.6% overvalued today. The Quality Score stands at 68/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Kennametal India Limited generated revenue of ₹6.9B at a net margin of 3.9%. Revenue declined 8.7% year over year. The stock trades on a trailing P/E of 49.7 (as of Jul 4, 2026). Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹579.45 (bear case) to ₹994.91 (bull case); at ₹4,580, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 140% above its 52-week low. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -83%, 505890 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹681.87 ₹1,004 ₹1,476 80
Residual Income ₹330.44 ₹396.11 ₹700.74 76
Rev-Margin DCF ₹605.38 ₹933.69 ₹1,323 74
All 26 models by family
DCF Models
FCF DCF ₹674.96 ₹1,046 ₹1,632 38
Owner Earnings ₹696.79 ₹1,082 ₹1,688 31
5Y Revenue Exit ₹605.38 ₹934.27 ₹1,358 39
5Y EBITDA Exit ₹725.97 ₹1,165 ₹1,686 41
5Y P/E Exit ₹712.40 ₹1,139 ₹1,596 38
10Y Revenue Exit ₹608.25 ₹918.08 ₹1,344 36
10Y EBITDA Exit ₹702.12 ₹1,081 ₹1,600 37
10Y P/E Exit ₹693.39 ₹1,062 ₹1,530 35
Earnings-Based
Graham-Dodd ₹318.37 ₹1,107 ₹1,488 54
Lynch FV ₹256.94 ₹367.06 ₹477.18 50
PEG = 1.0 ₹256.94 ₹367.06 ₹477.18 46
EPV ₹559.13 ₹640.63 ₹711.96 59
Dividend Discount
Gordon GGM ₹367.22 ₹763.53 ₹1,211 70
DDM Multi-Stage ₹367.22 ₹639.63 ₹801.34 61
Multiples
P/E Multiple ₹737.40 ₹983.20 ₹1,229 63
P/S Multiple ₹596.94 ₹795.93 ₹994.91 58
P/B Multiple ₹596.94 ₹795.93 ₹994.91 55
EV/EBIT ₹797.54 ₹1,040 ₹1,283 53
EV/EBITDA ₹830.44 ₹1,084 ₹1,337 54
EV/Revenue ₹589.28 ₹811.80 ₹1,034 43
Asset-Based
NCAV (Graham) ₹170.01 ₹227.81 ₹340.02 50
Growth DCF
Growth DCF ₹681.87 ₹1,004 ₹1,476 80
Rev-Margin DCF ₹605.38 ₹933.69 ₹1,323 74
Economic Profit
Residual Income ₹330.44 ₹396.11 ₹700.74 76
ROIC Compounder ₹600.61 ₹752.14 ₹934.93 72
Growth Earnings
Growth-Adj P/E ₹634.39 ₹906.28 ₹1,178 68

Widest divergence: DCF Models (₹1,062) versus Asset-Based (₹227.81). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 49.7 as of Jul 4, 2026
P/S ratio 4.37 P/E × margin
EPS (TTM) ₹12.11 price ÷ EPS = P/E 49.7
Dividend yield 0.3% payout 102%
Net margin 8.8% FY2025
Return on assets (EBIT) 14.3% avg 5y
More key figures
Profitability
Operating margin 4.8% TTM
Growth
Revenue (TTM) ₹6.9B TTM
Revenue growth (YoY) -8.7% 3y avg +5.7%
EPS growth (YoY) -35.5%

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 70 · Market factors (momentum, volatility) 86

Profitability 69
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 95
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Kennametal India Limited, together with its subsidiary, manufactures and trades in hard metal products and machine tools in India, Europe, the United States, China, and internationally. It operates through two segments, Hard Metal Products and Machining Solutions Group.

Full company description

Kennametal India Limited, together with its subsidiary, manufactures and trades in hard metal products and machine tools in India, Europe, the United States, China, and internationally. It operates through two segments, Hard Metal Products and Machining Solutions Group. The company offers metalworking and metal cutting tools for milling, drilling, turning, and tooling system applications; products for surface and underground mining, such as drums, blocks, picks, and wear solutions; and drums and block systems, cutting teeth products, blades, wear protection products, track pads and tire-and-wheel assemblies, road rehabilitation products, foundation drilling cutting tools, and trenching products for construction applications. It also provides engineered components, such as cemented tungsten carbide products, cladding components, Stellite components, and Densalloy tungsten heavy alloys; and powdered materials and equipment, including tungsten, tungsten carbide, ready-to-press carbide grade, and thermal spray powders, as well as specialty alloys and services. In addition, the company offers tungsten and tungsten carbide wear components; and ceramics products. It serves manufactures, metalworking suppliers, machinery operators, and processors in the aerospace, earthworks, energy, transportation, general engineering, machine tool, and other industries under the Kennametal and Widia brand names. The company was founded in 1938 and is based in Bengaluru, India. Kennametal India Limited operates as a subsidiary of Meturit AG.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kennametal India Limited reported revenue of ₹11.7B in FY2025 versus ₹8.5B in FY2021, a compound +8.2%/yr. Reported net income was ₹1.0B in FY2025, compounding +8.8%/yr from FY2021.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹11.7B
Latest YoY
+6.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.7%
Avg. revenue growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.3% (7.0 + 0.3)
Revenue +8.2%/yr
FY21 ₹8.5B
FY22 ₹9.9B
FY23 ₹10.8B
FY24 ₹11.0B
FY25 ₹11.7B
Net income +8.8%/yr
FY21 ₹733M
FY22 ₹1.1B
FY23 ₹877M
FY24 ₹1.1B
FY25 ₹1.0B

505890 screens 83% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "Kennametal India Limited Fair Value". https://www.fairvalue-calculator.com/stock/505890

Peer Group

Tools & Accessories · 123 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 68 · Top 25%
Fair Value upside −83% · Bottom 25%
Return on assets 3% · Above median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth -9% · Bottom 25%
Dividend yield (TTM) 0.3% · Bottom 25%

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 49.7× · Pricier than 75% of peers
P/B 2.10× · Pricier than median
P/S (TTM) 2.29× · Pricier than median
EV/EBITDA 20.7× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 7
FUTURE0 · sector 16
PAST0 · sector 30
HEALTH100 · sector 97
DIVIDEND5 · sector 40

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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The Timken Company TKR $130.25 $64.85 -50%
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SFS Group SFSN CHF 131.40 CHF 118.30 -10%
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Frequently asked questions

Is Kennametal India Limited (505890) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹795.93 versus a price of ₹4,580, about −83% (overvalued).
What is the fair value of 505890?
Our model-based fair value for Kennametal India Limited is ₹795.93 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹4,580.
What is the quality score of 505890?
Kennametal India Limited has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Kennametal India Limited (505890)?
Kennametal India Limited reported trailing-twelve-month revenue of about ₹6.9B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 505890?
The net profit margin of Kennametal India Limited is about 3.9%, meaning it keeps roughly 3.9% of revenue as net income. Based on the latest reported figures.
Does Kennametal India Limited pay a dividend?
Kennametal India Limited currently shows a dividend yield of about 0.27% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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