Kinetic Engineering Ltd (KEL), the once-famous Firodia Group moped maker that gave us Luna rides in the 80s, is now selling shafts and gearboxes to survive. With a P/E of 108, margins flatter than a dosa, and a new EV subsidiary that’s still in baby steps, the company somehow has a ₹700+ crore market cap. If stock markets had Tinder, this would be the mysterious profile with zero photos, three filters, and still getting Super Likes.
2. Introduction
Welcome to Kinetic Engineering – a company that once promised “Humara Bajaj” type dominance in scooters but today makes more money from other income than from actual engineering. Incorporated in 1970, KEL has survived bankruptcies, buyouts, and bizarre strategic pivots that could give Netflix writers a run for their money.
Once the flagbearer of the Indian moped revolution, the company now finds itself sandwiched between big boys like Bosch, Bharat Forge, and Schaeffler on one side, and new EV disruptors on the other. Its gearboxes and shafts might still be whirring, but the financials tell us it’s grinding its gears.
Recent years have been a Bollywood reboot moment: the company launched Kinetic Watts & Volts Limited, a subsidiary dedicated to electric mobility. They even supply chassis and gearboxes for e-rickshaws. But let’s be real – in a market where Ola Electric, Ather, and TVS are burning hundreds of crores, KEL is entering the drag race on a Luna with a sidecar.
So, is this smallcap a hidden EV turnaround or just a nostalgia stock for uncles who once rode Kinetic Honda? Time to put on the detective hat.
Small engines up to 400cc (because someone has to make lawnmower engines too).
Mopeds, motorcycles, ATVs (remember the ATV craze that lasted as long as TikTok in India?).
Essential engine parts like crankshafts, axles, and camshafts.
They even supply spline yokes to American Axle (finally, some global flex).
Body components – chassis, rims, mufflers. Basically, if it moves and makes noise, they probably had a hand in it.
Services include press, weld, paint shops, and even vehicle assembly for exclusive clients. So basically – a glorified mechanic’s garage, but with a BSE ticker.
And now, the EV dream – Kinetic Watts and Volts. They claim supplies of gearboxes and chassis for e-3-wheelers, and a fancy upgraded paint shop. But the EV pivot smells like Maggi masala sprinkled on khichdi – cosmetic but not filling.
4. Financials Overview
Quarterly Snapshot (₹ Cr)
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
35.34
39.56
38.54
-10.7%
-8.3%
EBITDA
-2.03
2.51
3.12
-180.9%
-165.0%
PAT
0.52
0.54
0.49
-3.7%
+6.1%
EPS (₹)
0.27
0.23
0.26
+17.4%
+3.8%
Commentary: The operating profit is vanishing faster than Maggi in a hostel mess, but PAT still shows up thanks to “other income”. EPS annualised = ₹1.08. With CMP ₹301, the P/E comes to ~278x on this quarter’s annualised EPS. Not just expensive – this is like paying Oberoi rent for a chawl room.
5. Valuation – Fair Value Range Only
Let’s do the math:
P/E Method: Industry P/E ~27. EPS TTM ₹2.92 → fair value ₹79. Oops.
EV/EBITDA Method: EV ~₹726 Cr, EBITDA TTM ~₹18 Cr → 40x multiple. Industry ~15x. Fair range ~₹90–120.
DCF Method: Assume ₹6 Cr annual PAT growing 10% CAGR for 10 years (optimistic, like India qualifying for FIFA WC). Discount at 12% → FV ~₹100–120.
👉 Fair Value Range = ₹80 – ₹120
⚠️ Disclaimer: This range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Preferential issues of ₹177 Cr in 2025. Promoters are throwing money in like IPL owners buying uncapped players.
New EV subsidiary – Kinetic Watts & Volts. Launched DX scooter at ₹1.11 lakh. Question: why would anyone buy this over Ola S1
