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KENNAMETAL INDIA LTD.-$ (KENNAMET) Fair Value & Analysis

Industrials · IN · Market cap ₹64.0B

KI KENNAMETAL INDIA LTD.-$ KENNAMET · BSE
Price₹3,612
Fair Value₹937.49
Upside-74.0%
Quality71/100
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Mixed Growth
Solidly profitable · 10.2% net margin
generates free cash flow
1.35% dividend yield
Mixed vs. peers (7/13)
Moderate moat 55/100
Evidence: High Range ₹635.33 – ₹1,229 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 6 days ago

A solid business, but screening 74% overvalued on our models.

What matters now

  • A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹1,229). The favourable scenario is already priced in.
  • A fairly wide model range (₹635.33 to ₹1,229) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹3,676 ₹941.51 Fair Value ₹937.49 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 ₹941.51 – ₹3,676 · fair‑value band ₹635.33 – ₹1,229 · the ₹3,612 price screens above the ₹937.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

KENNAMETAL INDIA LTD.-$ (KENNAMET) currently trades at ₹3,612, while our model-based Fair Value estimate is ₹937.49, implying the stock looks roughly 74.0% overvalued today. The Quality Score stands at 71/100 (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 LTD.-$ generated revenue of ₹13.6B at a net margin of 10.2%. Revenue grew 39.2% year over year. It earns a return on equity of 14.1%. The stock trades on a trailing P/E of 57.4. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹635.33 (bear case) to ₹1,229 (bull case); at ₹3,612, 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 89% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -43% fair-value upside, at -74%, KENNAMET 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
Residual Income ₹330.43 ₹396.11 ₹700.74 76
Growth DCF ₹673.17 ₹965.55 ₹1,386 72
Gordon GGM ₹367.22 ₹763.52 ₹1,211 70
All 26 models by family
DCF Models
FCF DCF ₹663.35 ₹994.29 ₹1,501 38
Owner Earnings ₹684.59 ₹1,027 ₹1,552 31
5Y Revenue Exit ₹602.68 ₹910.18 ₹1,301 39
5Y EBITDA Exit ₹721.25 ₹1,132 ₹1,612 41
5Y P/E Exit ₹707.90 ₹1,107 ₹1,527 38
10Y Revenue Exit ₹603.22 ₹889.55 ₹1,272 36
10Y EBITDA Exit ₹694.74 ₹1,044 ₹1,509 37
10Y P/E Exit ₹686.23 ₹1,027 ₹1,444 35
Earnings-Based
Graham-Dodd ₹318.37 ₹1,002 ₹1,334 54
Lynch FV ₹219.25 ₹313.22 ₹407.19 50
PEG = 1.0 ₹219.25 ₹313.22 ₹407.19 46
EPV ₹488.68 ₹557.65 ₹618.00 59
Dividend Discount
Gordon GGM ₹367.22 ₹763.52 ₹1,211 70
DDM Multi-Stage ₹367.22 ₹610.18 ₹801.34 61
Multiples
P/E Multiple ₹737.40 ₹983.20 ₹1,229 63
P/S Multiple ₹596.94 ₹795.92 ₹994.90 58
P/B Multiple ₹596.94 ₹795.92 ₹994.90 55
EV/EBIT ₹802.32 ₹1,045 ₹1,287 53
EV/EBITDA ₹835.21 ₹1,089 ₹1,342 54
EV/Revenue ₹594.06 ₹816.58 ₹1,039 43
Asset-Based
NCAV (Graham) ₹170.01 ₹227.81 ₹340.02 50
Growth DCF
Growth DCF ₹673.17 ₹965.55 ₹1,386 72
Rev-Margin DCF ₹602.68 ₹911.67 ₹1,268 67
Economic Profit
Residual Income ₹330.43 ₹396.11 ₹700.74 76
ROIC Compounder ₹516.56 ₹637.61 ₹783.07 67
Growth Earnings
Growth-Adj P/E ₹612.00 ₹874.29 ₹1,137 68

Widest divergence: DCF Models (₹1,027) versus Asset-Based (₹227.81). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹13.6B
Revenue growth (YoY) +39.2%
Net margin 10.2%
Return on equity 14.1%
Free cash flow ₹1.1B FY2024
P/E ratio 57.4
More key figures
Operating margin 16.1%
EPS (TTM) ₹62.89
Dividend yield 1.4%
EPS growth (YoY) +110%

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

Quality Score breakdown

Overall quality 71/100

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

Profitability 69
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 91
Price trend over the last 3–12 months (market factor)
52W Momentum 97
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.

About the company

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

Full company description

Kennametal India Limited manufactures, sells, and trades in hard metal products and machine tools in India, Germany, the United States, China, and internationally. It operates through two segments, Hard Metal Products and Machining Solutions Group. The company offers metal cutting tools; metalworking tools for milling, hole making, turning, and threading, as well as PCD tooling, tool holders, industrial nozzles and abrasive flow products, rods and preforms, and tool kits; underground and surface mining products; construction products for road rehabilitation, foundation drilling, trenching, forestry, and recycling; and carbide wear parts, such as fluid handling and flow control, tips and compacts, pelletizing dies, particle size reduction wear components, and tungsten for defense applications. It also provides carbide rods and blanks; and metal powders, materials, and consumables. In addition, the company offers conforma-clad wear resistant coatings, including cloth-based and slurry-based cladding; evaporator belts, IMC intermetallic composites, boron nitride and ceramic components, and ceramic powders, as well as boron nitride suspensions, pastes, and sprays; additive manufacturing products; and spare parts and accessories, such as nuts and bolts, pads and shims, screws, pins and retainers, sleeves, clamping tools, keys, cartridges, caps and plugs, chip breakers, canisters, hand tools, lubricants and fluids, counterweights, and gaskets bushings and rings, as well as hose, fittings, and adapters. Further, it provides e-business, tool management, carbide recycling, reconditioning, cost per part program, rapid response center, technical support, and CAM integration services. The company serves the aerospace, additive manufacturing, machine tool, earthworks, transportation, energy, general engineering, medical, and defense industries. The company was incorporated in 1964 and is based in Bengaluru, India. Kennametal India Limited is a subsidiary of Meturit AG.

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

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

KENNAMETAL INDIA LTD.-$ reported revenue of ₹11.7B in FY2024 versus ₹8.5B in FY2020, a compound +8.2%/yr. Reported net income was ₹1.0B in FY2024, compounding +8.8%/yr from FY2020.

Growth Quality 84/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2024)
₹11.7B
Latest YoY
+6.4%
Avg. 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. 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. growth/yr (8Y) 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.
+6.7%
Revenue +8.2%/yr
FY20 ₹8.5B
FY21 ₹9.9B
FY22 ₹10.8B
FY23 ₹11.0B
FY24 ₹11.7B
Net income +8.8%/yr
FY20 ₹733M
FY21 ₹1.1B
FY22 ₹877M
FY23 ₹1.1B
FY24 ₹1.0B

KENNAMET screens 74% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "KENNAMETAL INDIA LTD.-$ Fair Value". https://www.fairvalue-calculator.com/stock/KENNAMET

Peer Group

Tools & Accessories · 124 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 71 · Top 25%
Fair Value upside −74% · Bottom 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 10% · Above median
Operating margin (TTM) 16% · Top 25%
Revenue growth 39% · Top 25%
Dividend yield (TTM) 1.1% · Below median

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 57.4× · Pricier than 75% of peers
P/B 8.56× · Pricier than 75% of peers
P/S (TTM) 4.72× · Pricier than 75% of peers
P/FCF 0.6× · Cheaper than median
EV/EBITDA 28.2× · Pricier than 75% of peers

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 2
FUTURE100 · sector 14
PAST56 · sector 28
HEALTH0 · sector 97
DIVIDEND22 · 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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Stanley Black & Decker, Inc SWK $102.90 $52.80 -49%
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The Timken Company TKR $130.25 $64.85 -50%
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Hangzhou Greatstar Industrial Co 002444 ¥30.08 ¥30.38 +1%
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Frequently asked questions

Is KENNAMETAL INDIA LTD.-$ (KENNAMET) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹937.49 versus a price of ₹3,612, about −74% (overvalued).
What is the fair value of KENNAMET?
Our model-based fair value for KENNAMETAL INDIA LTD.-$ is ₹937.49 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹3,612.
What is the quality score of KENNAMET?
KENNAMETAL INDIA LTD.-$ has a Quality Score of 71/100. 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 LTD.-$ (KENNAMET)?
KENNAMETAL INDIA LTD.-$ reported trailing-twelve-month revenue of about ₹13.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of KENNAMET?
The net profit margin of KENNAMETAL INDIA LTD.-$ is about 10.2%, meaning it keeps roughly 10.2% of revenue as net income. Based on the latest reported figures.
Does KENNAMETAL INDIA LTD.-$ pay a dividend?
KENNAMETAL INDIA LTD.-$ currently shows a dividend yield of about 1.35% 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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