Kennametal India Limited (KENNAMET) AI Stock Analysis

Kennametal India Limited

(NSE:KENNAMET)

Select Model

Rating:65Neutral

Price Target:INR 3,734.00▼(-5.72% Downside)

Action:initiatedcoverage

Date:09/22/26

Strong balance sheet and revenue growth anchor the score, supported by positive long-term technical momentum; high valuation and weak cash flow generation are the main constraints.

Positive Factors

Strong revenue growthRevenue expansion across the reported period indicates stronger customer demand and broader commercial traction. Re-acceleration in 2026 supports the potential for continued scale benefits and provides a durable foundation for sustaining profitability over the next several quarters.

Negative Factors

Weak recent cash conversionThe sharp divergence between earnings and cash generation weakens the quality of recent profits and may constrain internally funded investment. If working-capital outflows or elevated investment persist, liquidity flexibility and the durability of reported earnings could be pressured.

Kennametal India Limited (KENNAMET) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 87.53B
Dividend Yield: 1.01%
Average Volume (3M): 5,068
Price to Earnings (P/E): 44.4
Beta (1Y): 0.49
Revenue Growth: 29.08%
EPS Growth: 90.48%
Country: India
Employees: 773
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Kennametal India Limited Business Overview & Revenue Model

Company Description

Kennametal India Limited, along with its subsidiary, is a manufacturer and distributor of robust metal products and advanced machine tools, serving both domestic and international markets. The company's operations are divided into two main divisions:...

How the Company Makes Money

Kennametal India makes money primarily by selling industrial tooling and engineered wear solutions to manufacturers and infrastructure-related customers in India and, where applicable, through exports within the broader Kennametal network. Key revenu...

Kennametal India Limited Financial Statement Overview

Summary

Strong balance sheet with negligible debt, rising ROE to 23%, and steady revenue growth to 15.1 billion are offset by sharply weaker cash flows and gross margin compression to 32.3%.

Income Statement

74Positive

Balance Sheet

94Very Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	15.11B	15.11B	11.70B	10.98B	10.76B	9.88B
Gross Profit	5.33B	4.88B	5.44B	4.81B	4.50B	4.60B
EBITDA	3.13B	3.09B	1.87B	1.96B	1.57B	1.88B
Net Income	1.96B	1.96B	1.03B	1.10B	877.00M	1.14B
Balance Sheet
Total Assets	12.65B	12.65B	9.67B	9.27B	8.51B	8.30B
Cash, Cash Equivalents and Short-Term Investments	472.00M	472.00M	1.71B	1.13B	892.00M	642.00M
Total Debt	19.00M	19.00M	25.00M	30.00M	27.00M	0
Total Liabilities	4.11B	4.11B	2.19B	1.94B	1.63B	1.83B
Stockholders Equity	8.54B	8.54B	7.47B	7.33B	6.88B	6.46B
Cash Flow
Free Cash Flow	0	-348.00M	1.14B	858.00M	680.00M	-159.00M
Operating Cash Flow	0	188.00M	1.45B	1.15B	1.16B	491.00M
Investing Cash Flow	0	-483.00M	-39.00M	-247.00M	-453.00M	-619.00M
Financing Cash Flow	0	-887.00M	-892.00M	-669.00M	-447.00M	-526.00M

Kennametal India Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price3960.50

Price Trends

50DMA4141.35Negative

100DMA3666.74Negative

200DMA3050.29Positive

Market Momentum

MACD-155.28Positive

RSI33.71Neutral

STOCH8.08Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KENNAMET, the sentiment is Negative. The current price of 3960.50 is above the 20-day moving average (MA) of 3795.62, below the 50-day MA of 4141.35, and above the 200-day MA of 3050.29, indicating a neutral trend. The MACD of -155.28 indicates Positive momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 8.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KENNAMET.

Kennametal India Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:KENNAMET against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ESABINDIA	76Outperform	INR 80.11B	41.50	―	1.36%	12.58%	-7.85%
IN:SKFINDIA	70Neutral	INR 73.06B	46.47	―	2.74%	-53.48%	-70.93%
IN:KENNAMET	65Neutral	INR 76.33B	44.41	―	1.01%	29.08%	90.48%
IN:HARSHA	65Neutral	INR 42.19B	25.70	―	0.33%	22.34%	65.44%
IN:STERTOOLS	56Neutral	INR 7.85B	64.89	―	1.31%	3.67%	-75.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:NIBL	45Neutral	INR 833.29M	-2.72	―	―	14.63%	-238.37%

* General Sector Average

Performance Comparison

IN:KENNAMET and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:KENNAMET	Kennametal India Limited	3960.50	1537.96	63.49%
IN:ESABINDIA	Esab India Limited	5164.90	-182.81	-3.42%
IN:HARSHA	Harsha Engineers International Ltd.	460.95	60.89	15.22%
IN:NIBL	NRB Industrial Bearings Ltd.	34.52	2.62	8.21%
IN:SKFINDIA	SKF India Limited	1465.95	-549.99	-27.28%
IN:STERTOOLS	Sterling Tools Limited	213.25	-85.49	-28.62%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 22, 2026

Kennametal India Limited AI Stock Analysis