CMP: 494

Kennametal India Ltd. manufactures hard metal and hard metal products, including tungsten carbide products. The Company also manufactures mining tools, special purpose machines and accessories, and jigs and fixtures.

Kennametal is a decent mid-cap bet trading at a P/E of 28 with dividend yields of nearly 5% in the last 12 months. Some of the good news around this stock are,
  • Madhu Kela buys shares.
  • Rs 75 special dividend announcement by this week.
  • Reliance MF acquires 8.2% stake in co via OFS.
  • Reliance MF now owns nearly 33% of public float in company.
  • Strong promoter holding at 88%
It runs at zero debt with 45 Crores cash in hand. Revenues have risen from 240 Crores to 562 Crores in the last 5 years. Profits have risen from 23 Crores to 68 Crores in the last 5 years. Profit margins have risen from less than 10% to 12% in the last 5 years. Buy and hold for long term gains.