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Kennametal IndiaBOM:505890 -0.20%90 Altman Z-Score is 19.16 as of Jul. 30, 2026, which is 74% above its 10-year median of 11.04. 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. Among 3,005 Industrial Products companies, Kennametal India ranks better than 95.91% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 18.58 is strong.
Kennametal India has a Altman Z-Score of 19.16, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Kennametal India's Altman Z-Score or its related term are showing as below:
BOM:505890'
s Altman Z-Score Range Over the Past 10 Years
Min: 6.74 Med: 11.04 Max: 25.56
Current: 18.58
During the past 13 years, Kennametal India's highest Altman Z-Score was 25.56. The lowest was 6.74. And the median was 11.04.
Kennametal India (BOM:505890) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Kennametal India Altman Z-Score Related Terms
Kennametal India Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Kennametal India's Altman Z-Score 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.
BOM:505890 vs SNA, RBC, SWK: Altman Z-Score Comparison
For the Tools & Accessories subindustry, Kennametal India's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Kennametal India's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Kennametal India's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.4896
+
1.4
*
0
+
3.3
*
0.1839
+
0.6
*
27.7508
+
1.0
*
1.3156
=
19.16
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Kennametal India (BOM:505890) has a Altman Z-Score of 19.16 as of Jul. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Kennametal India and its competitors. This is 74% above median its historical median of 11.04. Over the past decade, Kennametal India's Altman Z-Score has ranged from 6.74 to 25.56. According to the industry distribution chart, Kennametal India ranks #123 out of 3005 companies in the Industrial Products industry, placing it in the top 4.1%.
Is Kennametal India's Altman Z-Score too high?
Kennametal India's current Altman Z-Score of 19.16 is 74% above median its 10-year median of 11.04. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 25.56. The Industrial Products industry median Altman Z-Score is 3.20. Kennametal India's value of 19.16 is 498.8% above this industry median. Based on the distribution chart, Kennametal India ranks #123 out of 3005 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 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's Altman Z-Score compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Kennametal India ranks #123 out of 3005 companies for Altman Z-Score. This places Kennametal India in the top 4% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.20. Kennametal India's value of 19.16 is 498.8% above this benchmark. Historically, Kennametal India's own Altman Z-Score has ranged from 6.74 to 25.56 over the past decade. While the company's 10-year median is 11.04 vs. the industry median of 3.20, 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 Altman Z-Score for an Industrial Products company?
The median Altman Z-Score among Industrial Products companies is 3.20, based on 3,005 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kennametal India's current Altman Z-Score of 19.16 is 498.8% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Kennametal India and its competitors. For the Industrial Products industry, the median Altman Z-Score is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal India's current Altman Z-Score is 19.16, which is 74% above median its own 10-year median of 11.04. 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 Altman Z-Score is 19.16, which is 74% above median its 10-year median of 11.04 and 498.8% above the Industrial Products industry median of 3.20. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Kennametal India (BOM:505890), the current Altman Z-Score is 19.16 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:
Altman Z-Score: 19.16 (74% above median its 10-year median of 11.04)
GF Value™: ₹2,873.59 vs. price of ₹2,880.10 (0.2% above fair value)
Industry Position: 498.8% above the Industrial Products median (#123 of 3005)
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 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
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