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Kennametal IndiaNSE:KENNAMET +2.86%86 3-Year ROIIC % is 38.57 as of Jun. 2026, which is 29% above its 10-year median of 29.79. GuruFocus rates NSE:KENNAMET with a GF Score™ of 86/100 and a GF Value™ of ₹3,235.15 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,924 Industrial Products companies, Kennametal India ranks better than 83.62% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Kennametal India's 3-Year ROIIC % for the quarter that ended in Jun. 2026 was 38.57%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Kennametal India's 3-Year ROIIC % or its related term are showing as below:
NSE:KENNAMET's 3-Year ROIIC % is ranked better than 83.62% of 2924
companies
in the Industrial Products industry
Industry Median: 3.51
vs NSE:KENNAMET: 38.57
Kennametal India (NSE:KENNAMET) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Kennametal India 3-Year ROIIC % Related Terms
Kennametal India 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Kennametal India's 3-Year ROIIC % can be seen below:
* 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.
NSE:KENNAMET vs SNA, RBC, SWK: 3-Year ROIIC % Comparison
For the Tools & Accessories subindustry, Kennametal India's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Kennametal India's 3-Year ROIIC % falls into.
Kennametal India's 3-Year ROIIC % for the quarter that ended in Jun. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1882.688 (Jun. 2026) - 837.4211 (Jun. 2023) )
/
( 9269 (Jun. 2026) - 6559 (Jun. 2023) )
=
1045.2669
/
2710
=
38.57%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Kennametal India (NSE:KENNAMET) has a 3-Year ROIIC % of 38.57 as of Jun. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Kennametal India and its competitors. This is 29% above median its historical median of 29.79. According to the industry distribution chart, Kennametal India ranks #479 out of 2924 companies in the Industrial Products industry, placing it in the top 16.4%.
Is Kennametal India's 3-Year ROIIC % too high?
Kennametal India's current 3-Year ROIIC % of 38.57 is 29% above median its 10-year median of 29.79. The Industrial Products industry median 3-Year ROIIC % is 3.51. Kennametal India's value of 38.57 is 998.9% above this industry median. Based on the distribution chart, Kennametal India ranks #479 out of 2924 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kennametal India has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's 3-Year ROIIC % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Kennametal India ranks #479 out of 2924 companies for 3-Year ROIIC %. This places Kennametal India in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.51. Kennametal India's value of 38.57 is 998.9% above this benchmark. While the company's 10-year median is 29.79 vs. the industry median of 3.51, Kennametal India has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.51, based on 2,924 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kennametal India's current 3-Year ROIIC % of 38.57 is 998.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Kennametal India and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal India's current 3-Year ROIIC % is 38.57, which is 29% above median its own 10-year median of 29.79. 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 (NSE:KENNAMET) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹3,235.15, compared to a current price of ₹3,719.60 — trading 15% above its estimated fair value. The current 3-Year ROIIC % is 38.57, which is 29% above median its 10-year median of 29.79 and 998.9% above the Industrial Products industry median of 3.51. Kennametal India's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Kennametal India (NSE:KENNAMET), the current 3-Year ROIIC % is 38.57 as of Jun. 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 (NSE:KENNAMET) Overvalued in 2026?
Based on GuruFocus' analysis, Kennametal India stock appears to be overvalued.
The current stock price of ₹3,719.60 is trading 15% above its estimated GF Value™ of ₹3,235.15.
GuruFocus considers Kennametal India to be Modestly Overvalued.
Key valuation signals for NSE:KENNAMET:
3-Year ROIIC %: 38.57 (29% above median its 10-year median of 29.79)
GF Value™: ₹3,235.15 vs. price of ₹3,719.60 (15% above fair value)
Industry Position: 998.9% above the Industrial Products median (#479 of 2924)
No single metric tells the full story. See the NSE:KENNAMET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
86GF Score
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