Kennametal India Limited (505890) Fair Value & Analysis
Industrials · IN · Market cap ₹15.7B (≈ $165M) · ISIN INE717A01029
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.
Strengths
Risks
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 →
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.
Price vs Fair Value (5 years)
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.
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.
All 26 models by family
Widest divergence: DCF Models (₹1,062) versus Asset-Based (₹227.81). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 70 · Market factors (momentum, volatility) 86
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.
505890 screens 83% overvalued. Compare with Techtronic Industries Company →
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.
Valuation Multiples vs Tools & Accessories median · lower = cheaper
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.
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.
Similar stocks
10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Techtronic Industries Company 0669 | HK$138.50 | HK$78.56 | -43% |
| Snap-on Incorporated SNA | $391.86 | $344.67 | -12% |
| RBC Bearings Incorporated RBC | $513.95 | $179.94 | -65% |
| Lincoln Electric Holdings LECO | $284.90 | $151.86 | -47% |
| Stanley Black & Decker, Inc SWK | $99.24 | $52.80 | -47% |
| AB SKF (publ) SKFB | kr 275.40 | kr 180.34 | -35% |
| The Timken Company TKR | $130.25 | $64.85 | -50% |
| The Toro Company TTC | $100.35 | $69.71 | -31% |
| SFS Group SFSN | CHF 131.40 | CHF 118.30 | -10% |
| Hangzhou Greatstar Industrial Co 002444 | ¥30.51 | ¥30.38 | -0% |
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Frequently asked questions
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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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