Kirloskar Ferrous Industries Ltd. (KIRLFER) AI Stock Analysis

Kirloskar Ferrous Industries Ltd.

(NSE:KIRLFER)

Select Model

Rating:70Outperform

Price Target:INR 528.00▲(22.73% Upside)

Action:initiatedcoverage

Date:09/22/26

The score is driven primarily by solid financial performance: strong growth, improved 2026 margins, and a more conservative balance sheet. Technicals are supportive with the price above major moving averages, but overbought readings raise near-term pullback risk. Valuation is only fair given a ~23 P/E and a modest ~1.25% dividend yield.

Positive Factors

Revenue ScalingMaterial revenue scaling indicates expanding business activity across the company’s ferrous product markets. If sustained, a larger operating base can support better capacity absorption, strengthen customer relevance, and provide a foundation for compounding earnings over the next several quarters.

Negative Factors

Inconsistent Free Cash FlowThe history of negative free cash flow shows that cash generation can weaken materially despite reported earnings. Recurring working-capital swings or capital spending pressure could reduce financial flexibility and make funding growth less predictable through the industry cycle.

Kirloskar Ferrous Industries Ltd. (KIRLFER) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 72.09B
Dividend Yield: 0.69%
Average Volume (3M): 20.30K
Price to Earnings (P/E): 20.9
Beta (1Y): 1.03
Revenue Growth: 3.78%
EPS Growth: 7.84%
Country: India
Employees: 3,279
Sector: General
Sector Strength: 55
Industry: Steel

Kirloskar Ferrous Industries Ltd. Business Overview & Revenue Model

Company Description

Kirloskar Ferrous Industries Limited specializes in the production and supply of iron castings throughout India. Its product portfolio includes various grades of pig iron, such as foundry, spherodized graphite, and basic, alongside grey iron castings...

How the Company Makes Money

Kirloskar Ferrous Industries makes money primarily by manufacturing and selling ferrous products. Key revenue streams typically include: (1) Sale of iron castings: The company produces cast components (e.g., for automotive and industrial applications...

Kirloskar Ferrous Industries Ltd. Financial Statement Overview

Summary

Strong revenue scaling and improved 2026 profitability (EBITDA margin ~12.9%, net margin ~5.2%) alongside a healthier leverage profile (debt-to-equity ~0.27). Offsetting this, margins and free cash flow have been notably volatile across the cycle (negative FCF in 2022 and 2024), reflecting sensitivity to steel pricing, costs, and capital needs.

Income Statement

74Positive

Balance Sheet

78Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	69.62B	68.89B	65.64B	61.17B	64.17B	37.48B
Gross Profit	29.45B	29.92B	28.33B	9.04B	26.76B	14.42B
EBITDA	8.65B	8.89B	7.56B	8.13B	8.85B	6.55B
Net Income	3.45B	3.58B	2.94B	2.98B	4.37B	3.47B
Balance Sheet
Total Assets	0	65.59B	63.49B	59.07B	54.82B	53.14B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.13B	689.40M	359.20M	608.40M	850.00M
Total Debt	0	10.36B	12.78B	12.24B	9.71B	12.08B
Total Liabilities	-38.63B	27.26B	29.14B	26.76B	24.73B	26.78B
Stockholders Equity	38.63B	38.63B	34.35B	32.31B	30.08B	17.65B
Cash Flow
Free Cash Flow	0	4.94B	1.70B	-881.80M	3.16B	-858.00M
Operating Cash Flow	0	9.42B	6.54B	5.62B	7.98B	3.45B
Investing Cash Flow	0	-4.44B	-4.75B	-5.21B	-3.99B	-9.09B
Financing Cash Flow	0	-4.53B	-1.73B	-615.90M	-4.23B	-845.20M

Kirloskar Ferrous Industries Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price430.20

Price Trends

50DMA458.70Negative

100DMA457.93Negative

200DMA438.82Negative

Market Momentum

MACD-6.87Positive

RSI39.18Neutral

STOCH25.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KIRLFER, the sentiment is Negative. The current price of 430.20 is below the 20-day moving average (MA) of 454.69, below the 50-day MA of 458.70, and below the 200-day MA of 438.82, indicating a bearish trend. The MACD of -6.87 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 25.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KIRLFER.

Kirloskar Ferrous Industries Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:KIRLFER against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KSL	73Outperform	INR 35.92B	12.75	―	1.22%	-4.88%	-0.48%
IN:KIRLFER	70Outperform	INR 72.09B	20.86	―	0.69%	3.78%	7.84%
IN:SUNFLAG	65Neutral	INR 70.74B	34.29	―	0.25%	9.35%	4.58%
IN:JAYNECOIND	64Neutral	INR 84.60B	12.26	―	―	18.34%	82.81%
IN:ELECTCAST	62Neutral	INR 39.27B	32.43	―	1.42%	-15.69%	-78.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SHYAMMETL	52Neutral	INR 324.85B	28.86	―	0.38%	22.76%	21.47%

* General Sector Average

Performance Comparison

IN:KIRLFER and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:KIRLFER	Kirloskar Ferrous Industries Ltd.	436.50	-62.29	-12.49%
IN:ELECTCAST	Electrosteel Castings Ltd.	63.53	-24.88	-28.14%
IN:JAYNECOIND	Jayaswal Neco Industries Limited	87.13	11.45	15.13%
IN:KSL	Kalyani Steels Ltd	822.80	-18.75	-2.23%
IN:SHYAMMETL	Shyam Metalics & Energy Ltd.	1163.80	280.84	31.81%
IN:SUNFLAG	Sunflag Iron & Steel Co. Ltd.	392.50	128.42	48.63%

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

Kirloskar Ferrous Industries Ltd. AI Stock Analysis