Kennametal India (BOM:505890) Margin of Safety % (DCF Earnings Based): -141.40% (As of Jul. 30, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BOM:505890 Kennametal India Ltd BOM:505890
90 GF Score
Price ₹2,880.10
GF Value ₹2,873.59
Valuation Fairly Valued
! 1 Warning Sign
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What is Kennametal India Margin of Safety % (DCF Earnings Based)?

Kennametal India BOM:505890 -0.20% 90 Margin of Safety % (DCF Earnings Based) is -141.40% as of Jul. 30, 2026. GuruFocus rates BOM:505890 with a GF Score™ of 90/100 and a GF Value™ of ₹2,873.59 (Fairly Valued). The stock has 1 warning sign investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-07-30), Kennametal India's Predictability Rank is 5-Stars. Kennametal India's intrinsic value calculated from the Discounted Earnings model is ₹1193.08 and current share price is ₹2880.10. Consequently,

Kennametal India's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -141.40%.


BOM:505890 vs SNA, RBC, SWK: Margin of Safety % (DCF Earnings Based) Comparison

For the Tools & Accessories subindustry, Kennametal India's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kennametal India Margin of Safety % (DCF Earnings Based) vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kennametal India's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Kennametal India's Margin of Safety % (DCF Earnings Based) falls into.


BOM:505890
90GF Score
Kennametal India Ltd BOM:505890
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Kennametal India Margin of Safety % (DCF Earnings Based) Calculation

Kennametal India's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(1193.08-2880.10)/1193.08
=-141.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -141.40% mean?
Kennametal India (BOM:505890) has a Margin of Safety % (DCF Earnings Based) of -141.40% as of Jul. 30, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Kennametal India.
Is Kennametal India's Margin of Safety % (DCF Earnings Based) too high?
Kennametal India's current Margin of Safety % (DCF Earnings Based) is -141.40%. Overall, Kennametal India has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's Margin of Safety % (DCF Earnings Based) compare to SNA and RBC?
Kennametal India's Margin of Safety % (DCF Earnings Based) of -141.40% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for an Industrial Products company?
A good Margin of Safety % (DCF Earnings Based) depends on the Industrial Products industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Kennametal India. Kennametal India's current Margin of Safety % (DCF Earnings Based) is -141.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kennametal India stock overvalued right now?
Based on GuruFocus' analysis, Kennametal India (BOM:505890) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,873.59, compared to a current price of ₹2,880.10 — trading 0.2% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -141.40%. Kennametal India's overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Kennametal India (BOM:505890), the current Margin of Safety % (DCF Earnings Based) is -141.40% as of Jul. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kennametal India (BOM:505890) Overvalued in 2026?

Based on GuruFocus' analysis, Kennametal India stock appears to be overvalued. The current stock price of ₹2,880.10 is trading 0.2% above its estimated GF Value™ of ₹2,873.59. GuruFocus considers Kennametal India to be Fairly Valued.

Key valuation signals for BOM:505890:

  • Margin of Safety % (DCF Earnings Based): -141.40%
  • GF Value™: ₹2,873.59 vs. price of ₹2,880.10 (0.2% above fair value)
  • GF Score™: 90/100 with 1 warning sign

No single metric tells the full story. See the BOM:505890 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kennametal India Business Description

Other Exchanges KENNAMET:India
Address 8/9th Mile, Tumkur Road, Bengaluru, KA, IND, 560073
Kennametal India Ltd is engaged in the manufacturing and trading of hard metal products and machine tools, also known as machining solutions, serving both domestic and international markets. It operates through two main segments, the Machining Solutions Group and Hard Metal Products. The Machining Solutions Group's sales include machines, fixtures, spare parts, and after-sales services. The Hard Metal Products segment is the key revenue driver, offering metal cutting tools, tooling systems, and wear-resistant components for various industries such as automotive, aerospace, energy, and engineering. The company's operations are mainly based in India, with a presence in Germany, the USA, and China, and the majority of its revenue comes from India.
90GF Score

Get the complete analysis for BOM:505890

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹2,880.10
Price
₹2,873.59
GF Value