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Kinetic Engineering
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Promoted by N K Firodia and H K Firodia, Kinetic Engineering Limited was incorporated as a private limited company in Oct.'70. It became a public limited company with effect from 1 Oct.'75. The Company is engaged in manufacturing and supply of automotive components.
In Jan.'72, the company started producing the Luna brand of mopeds designed and developed indigenously, at its plant at Chinchwad, near Pune.In 1984, along with Honda Motor Company, Japan, the company promoted Kinetic Honda Motors to manufacture scooters based on the latest technology sourced from Honda Motor Company. In 1998 it raised its stake in Kinetic Honda Motor Ltd (KHML) to 70 per cent as per the agreement signed with Honda Motor Co, thereby making it a subsidiary. The company also promoted three joint-venture finance companies, namely 20th Century Kinetic Finance, Integrated Kinetic Finance and Kinetic Capital Finance.
In 1992, the company indigenously developed a unique colour television set based on digital technology. The company has developed micro-processor decks which, when interfaced, would enable a TV to function as a home computer-cum-hi-fi-stereo. In 1995, the company introduced Kinetic Merlin TV-Komtutor, which has three calculators -- simple, scientific and function -- built into it.
It introduced the 73-cc Pride in 1994. At present it produces four models -- Luna, Spark, Safari and Pride. It produces auto components commercially. During 1996-97, KEL launched a new version of Pride -- Pride Fx, K4-100 -- a four stroke step through motorcycle and a new look Safari which has been renamed as Safari - V2.
The company has embarked upon a project to manufacture a car (500cc) priced at Rs 1.25 lacs. Production is expected to commence in 1997-98. A separate company, Kinetic Transportation Products Ltd (KTPL), has been formed to deal with elevators, escalators and auto parking garage in collaboration with M/s Hyundai Elevator Co Ltd, South Korea. The business related to electronics is being spun off into another separate company, Kinetic Communications Ltd.
During the year 1999-2000, the company has received Export Excellence Award from Engineering Export Promotion Council consecutively for the third time. Also the company's Koregaon Bhima factory has been awarded the 'Lowest Accident Frequency Rate Award' for the year 1998 by the National Safety Council.
'Kinetic Challenger'motorcycle was introduced during 2000-2001.The special features of this motorcycle lean burn engine technology for fuel efficiency,resonator induction for excellent pick up and low levels of noise etc.Two new models Kinetic V2-80 and Luna Super 70 with higher fuel efficiency were also introduced during the year.
New products like Challenger was introduced in both existing as well as new export markets during 2001-02. It launched new vehicles such as Boss, GF-125, Nova and Zing in 2002-03; launched four new models viz. Boss 115, Velocity, GF-170 City and GF-Laser in 2003-04; launched the 250cc High Performance bike COMET 250 in collaboration with Hyosung Motors of South Korea in 2004-05. Reliance Capital Limited acquired 14.81% equity stake in the Company in 2004-05.
In 2005-06, the Company completed major restructuring of business and disposed off its Two Wheeler manufacturing Unit, Supa Undertaking on slump sale basis Kinetic Motor Company Limited (KMCL) for consideration of Rs 53.50 Crores. KMCL, towards discharge of a part of purchase consideration, allotted Convertible / Optionally Convertible / Redeemable Preference shares to KEL of an aggregate amount of Rs. 30 crores. Kinetic Motor Company Limited ceased to be the Subsidiary of Company consequent upon KMCL's Capital restructuring during 2006.
In 2008-09, the Scheme of Arrangement between Jaya Hind Sciaky Limited, the Company and Kaygee Auto Products Private Limited was made and in terms of the said Scheme, the Auto Component business and Investments (the Remaining Undertaking) of Jaya Hind Sciaky Limited got merged with the Company. The Company further issued and allotted 17,82,774 equity shares to the shareholders of Jaya Hind Sciaky Limited through the Scheme of Merger. The Company commenced supplies of transmission gears for Tata Nano from September 2009.
During 2016-17, the Company productionised and ramped up sleeves and dog teeth components for global major Renault Nissan; it commenced the production for a 380 NM gearbox.
Kinetic Engineering share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Kinetic Engineering indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Kinetic Engineering is valued compared to its competitors.
Kinetic Engineering PE ratio helps investors understand what is the market value of each stock compared to Kinetic Engineering 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Kinetic Engineering evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Kinetic Engineering generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Kinetic Engineering in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Kinetic Engineering shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Kinetic Engineering compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Kinetic Engineering over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Kinetic Engineering helps investors get an insight into when they can enter or exit the stock. Key components of Kinetic Engineering Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Kinetic Engineering shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Kinetic Engineering ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Kinetic Engineering provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Kinetic Engineering highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Kinetic Engineering .
The balance sheet presents a snapshot of Kinetic Engineering ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.