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Kalyani Forge Overview

1. Business Overview

Kalyani Forge Ltd. is an Indian company primarily engaged in the manufacturing and supply of various forged components. The company's core business model revolves around precision engineering and hot forging processes to produce critical components for a range of industries. It makes money by selling these components, which include crankshafts, connecting rods, steering knuckles, gear blanks, and other industrial parts, to original equipment manufacturers (OEMs) and for aftermarket applications, both domestically and internationally.

2. Key Segments / Revenue Mix

Kalyani Forge's primary business segment is the manufacturing of forgings. While specific revenue breakdown by product or end-user industry is not always publicly detailed, the company broadly caters to the automotive (commercial vehicles, passenger cars, tractors, two-wheelers), industrial (heavy engineering, construction equipment), and defense sectors. Automotive components typically form a significant portion of its sales.

3. Industry & Positioning

The forging industry in India is characterized by capital intensity, technical expertise, and a competitive landscape comprising both organized and unorganized players. It is largely dependent on the cyclical performance of its end-user industries, particularly automotive. Kalyani Forge is part of the broader Kalyani Group, a diversified Indian conglomerate known for its presence in steel, forgings, and defense. Within the listed Indian forging space, Kalyani Forge is a mid-sized player, benefiting from its group affiliation for reputation and potential synergies, while competing with larger, more diversified forging companies and smaller regional players.

4. Competitive Advantage (Moat)

Kalyani Forge's competitive advantages include:

Technical Expertise & Quality: A focus on precision and quality in critical components helps build long-term relationships with demanding OEM customers, leading to high switching costs.

Customer Relationships: Long-standing relationships with key customers in the automotive and industrial sectors provide stable order flows and repeat business.

Group Affiliation: Being part of the Kalyani Group lends credibility, access to a broader network, and potential for shared resources or technological advancements.

Product Diversification: Ability to cater to various industries and product types somewhat diversifies risk and leverages manufacturing capabilities.

5. Growth Drivers

Key factors that can drive growth over the next 3-5 years include:

Growth in End-User Industries: Resurgence in the automotive sector (commercial vehicles, passenger vehicles), infrastructure development, and industrial capital expenditure will drive demand for forgings.

Increased Content per Vehicle/Equipment: Demand for lighter, stronger, and more complex forged components for improved fuel efficiency and performance.

Exports: Opportunities in global markets due to competitive manufacturing costs and quality.

'Make in India' Initiative: Government focus on boosting domestic manufacturing across sectors can benefit local component suppliers.

Diversification into New Sectors: Expanding presence in non-automotive segments like construction, defense, and renewable energy.

6. Risks

Cyclicality of End-User Industries: The company's performance is highly sensitive to downturns in the automotive, industrial, and infrastructure sectors.

Raw Material Price Volatility: Fluctuations in steel and other metal prices, which are key raw materials, can impact profitability if not effectively passed on to customers.

Intense Competition: The forging industry is competitive, leading to pricing pressures and potential margin erosion.

Technological Disruption: Shifts in automotive technology (e.g., electrification of vehicles) could impact demand for traditional engine/drivetrain components.

Regulatory & Environmental Compliance: Evolving environmental regulations and compliance costs can be a challenge.

Foreign Exchange Fluctuations: For export-oriented sales or import of specialized machinery.

7. Management & Ownership

Kalyani Forge Ltd. is promoted by the Kalyani family, a prominent industrialist family in India, known for establishing the Kalyani Group. Mr. B.N. Kalyani is a key figure in the group. The management structure is typically professionalized but operates within the strategic vision set by the promoters. Promoter holding is generally significant in Indian companies like Kalyani Forge, indicating alignment of interests but also concentrated control. The company likely has a professional management team overseeing day-to-day operations and strategic execution under board supervision.

8. Outlook

Kalyani Forge is positioned within a fundamental manufacturing industry tied to India's industrial growth. The company benefits from its established operational capabilities, quality focus, and association with the reputable Kalyani Group. The outlook for Kalyani Forge is closely linked to the performance of key end-user sectors such as automotive, infrastructure, and general engineering. A revival in these sectors, coupled with the company's efforts in product diversification and technological upgrades, could drive stable growth. However, the business remains susceptible to raw material price volatility, intense competition, and the inherent cyclicality of its customer industries. The ability to adapt to technological shifts, especially in the automotive sector, and manage input costs will be crucial for sustained profitability.

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Kalyani Forge Key Financials

Market Cap ₹225 Cr.

Stock P/E 27.1

P/B 2.5

Current Price ₹619.7

Book Value ₹ 252.6

Face Value 10

52W High ₹873

Dividend Yield 0.65%

52W Low ₹ 504.1

Kalyani Forge Share Price

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Volume
Price

Kalyani Forge Quarterly Price

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Kalyani Forge Peer Comparison

Kalyani Forge Quarterly Results

#(Fig in Cr.) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 61 60 57 57 62 59 59 64 56 58
Other Income 1 2 1 1 1 1 0 0 1 0
Total Income 62 61 58 58 63 59 59 65 56 58
Total Expenditure 56 57 56 53 55 53 53 58 49 49
Operating Profit 5 5 2 5 8 7 7 6 7 9
Interest 1 2 1 1 2 2 2 2 2 3
Depreciation 3 1 -0 2 2 2 2 2 2 2
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 1 2 1 1 5 3 3 2 2 4
Provision for Tax -0 0 0 1 1 1 0 1 0 4
Profit After Tax 1 2 1 0 4 2 2 1 2 -0
Adjustments -0 0 -0 0 0 0 -0 -0 0 0
Profit After Adjustments 1 2 1 0 4 2 2 1 2 -0
Adjusted Earnings Per Share 3.6 4.2 1.9 1 10.8 5 6.1 3.9 5.9 -0.3

Kalyani Forge Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 241 231 227 259 286 201 181 247 266 237 237 237
Other Income 3 3 5 7 6 3 2 1 7 4 3 1
Total Income 244 234 231 266 293 204 183 248 273 241 239 238
Total Expenditure 228 215 212 237 261 193 169 228 255 223 213 209
Operating Profit 16 19 19 29 32 11 14 20 18 18 27 29
Interest 6 5 4 6 8 5 3 4 3 6 7 9
Depreciation 13 12 10 13 15 14 13 12 11 6 8 8
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 -2 0 0 0
Profit Before Tax -3 2 5 9 10 -8 -2 4 1 6 12 11
Provision for Tax -1 1 2 3 3 -1 -0 1 1 1 3 5
Profit After Tax -2 1 3 7 7 -7 -2 3 -0 5 8 5
Adjustments 0 0 0 -0 -1 0 0 0 0 0 0 0
Profit After Adjustments -2 1 3 6 6 -7 -2 3 -0 5 8 5
Adjusted Earnings Per Share -6.2 3 9.6 18 19.1 -19 -4.8 8.6 -0.5 12.5 22.9 15.6

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 0% -1% 3% -0%
Operating Profit CAGR 50% 11% 20% 5%
PAT CAGR 60% 39% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -19% 34% 26% 10%
ROE Average 10% 5% 3% 2%
ROCE Average 12% 8% 6% 6%

Kalyani Forge Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 97 98 102 107 112 102 100 103 78 82 90
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 12 5 16 18 6 1 0 0 1 19 12
Other Non-Current Liabilities 4 3 2 4 3 3 4 3 2 4 6
Total Current Liabilities 88 93 115 107 105 76 77 74 95 96 121
Total Liabilities 201 198 235 235 227 182 181 180 176 201 228
Fixed Assets 61 64 60 84 78 65 53 44 39 56 61
Other Non-Current Assets 22 12 47 14 5 6 7 7 5 9 19
Total Current Assets 118 122 129 137 143 111 121 129 132 136 148
Total Assets 201 198 235 235 227 182 181 180 176 201 228

Kalyani Forge Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 2 5 9 1 4 1 1 0 2 1 1
Cash Flow from Operating Activities 25 19 15 12 30 24 7 11 -3 10 22
Cash Flow from Investing Activities -2 -5 -41 -2 -7 -1 -1 -4 -6 -26 -24
Cash Flow from Financing Activities -20 -11 19 -8 -25 -23 -7 -5 8 16 3
Net Cash Inflow / Outflow 3 3 -7 2 -2 -0 -1 2 -1 -0 0
Closing Cash & Cash Equivalent 5 9 1 4 1 1 0 2 1 1 1

Kalyani Forge Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) -6.22 3.03 9.57 18.04 19.14 -19.04 -4.84 8.61 -0.5 12.51 22.86
CEPS(Rs) 29.81 35.11 38.19 53.63 60.48 19.14 30.41 42.54 30.26 29.6 44.49
DPS(Rs) 0 2 3 3.5 4 1 1.5 3 3 3 4
Book NAV/Share(Rs) 267.79 268.41 280.4 293.51 306.66 280.71 275.4 282.95 213.58 225.42 246.53
Core EBITDA Margin(%) 4.94 6.16 5.88 8.1 9.01 4.18 6.66 7.58 4.01 5.85 10.09
EBIT Margin(%) 1.23 2.71 3.56 5.91 6.01 -1.37 0.56 3.1 1.75 4.86 7.88
Pre Tax Margin(%) -1.12 0.79 2.06 3.47 3.36 -4.05 -1.15 1.63 0.48 2.37 4.9
PAT Margin (%) -0.85 0.43 1.38 2.47 2.43 -3.45 -0.97 1.27 -0.07 1.92 3.51
Cash Profit Margin (%) 4.08 4.98 5.51 7.35 7.68 3.46 6.12 6.28 4.14 4.55 6.84
ROA(%) -1.1 0.55 1.61 2.79 3.02 -3.39 -0.97 1.74 -0.1 2.41 3.87
ROE(%) -2.26 1.13 3.49 6.29 6.38 -6.48 -1.74 3.08 -0.2 5.7 9.69
ROCE(%) 2.13 4.92 5.9 9.36 10.49 -1.89 0.77 5.95 3.79 8.9 12.26
Receivable days 78.22 87.13 89.37 90.68 92.64 119.74 124.76 103.53 101.39 105.38 110.04
Inventory Days 48.95 50.85 59.36 63.99 61.35 80.16 85.87 69.41 66.03 79.7 87.35
Payable days 93.43 126.89 143.47 132 124.62 146.47 139.02 96.86 94.6 144.48 157.1
PER(x) 0 77.49 38.44 16.05 14.63 0 0 21.27 0 32.49 21.7
Price/Book(x) 1.03 0.88 1.31 0.99 0.91 0.32 0.7 0.65 1.04 1.8 2.01
Dividend Yield(%) 0 0.85 0.82 1.21 1.43 1.11 0.78 1.64 1.35 0.74 0.81
EV/Net Sales(x) 0.58 0.5 0.86 0.63 0.5 0.29 0.52 0.36 0.43 0.86 1.05
EV/Core EBITDA(x) 8.55 6.24 10.06 5.71 4.46 5.26 6.85 4.41 6.43 11.44 9.4
Net Sales Growth(%) 17.22 -4.1 -1.77 13.98 10.75 -29.82 -10.03 36.35 7.85 -10.93 -0.06
EBIT Growth(%) -73.73 113.26 29.05 74.79 9.77 -115.99 136.64 657.85 -39.26 147.89 61.87
PAT Growth(%) -147.32 148.77 215.73 88.44 6.09 -199.45 74.58 277.96 -105.86 2576.92 82.74
EPS Growth(%) -147.32 148.77 215.73 88.44 6.09 -199.45 74.58 277.96 -105.86 2577.14 82.74
Debt/Equity(x) 0.48 0.42 0.62 0.59 0.42 0.31 0.27 0.26 0.49 0.74 0.8
Current Ratio(x) 1.33 1.31 1.11 1.28 1.36 1.46 1.58 1.74 1.39 1.42 1.23
Quick Ratio(x) 0.94 0.91 0.73 0.87 0.94 0.99 1.08 1.16 0.96 0.84 0.76
Interest Cover(x) 0.52 1.41 2.38 2.42 2.27 -0.51 0.33 2.11 1.38 1.95 2.65
Total Debt/Mcap(x) 0.47 0.48 0.47 0.6 0.46 0.96 0.39 0.4 0.47 0.41 0.4

Kalyani Forge Shareholding Pattern

# Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Promoter 58.71 58.71 58.71 58.7 58.71 58.71 58.71 58.73 58.76 58.76
FII 0 0 0 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0 0 0 0
Public 41.29 41.29 41.29 41.3 41.29 41.29 41.29 41.26 41.24 41.24
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Kalyani Forge News

Kalyani Forge Pros & Cons

Pros

  • Company has reduced debt.

Cons

  • Company has a low return on equity of 5% over the last 3 years.
  • Debtor days have increased from 144.48 to 157.1days.
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