KMTR Stock Valuation: Is Kirana Megatara Expensive or Cheap?
Published: September 21, 2026
Last Updated: September 21, 2026
Financial data and analysis reviewed as of September 21, 2026.
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| KMTR Stock Valuation |
Kirana Megatara Tbk (IDX: KMTR) stock valuation looks simple at first glance: the shares trade below book value and at a relatively modest multiple of 2025 earnings. But the latest operating results tell a more complicated story.
Worldreview1989 - For investors in the United States who are accustomed to evaluating industrial and commodity businesses through earnings, free cash flow, leverage, and return on capital, KMTR presents an interesting valuation case.
PT Kirana Megatara Tbk is one of Indonesia's major natural-rubber processors, with its business heavily exposed to rubber prices, export demand, foreign-exchange movements, working capital, and financing costs.
The central valuation question is therefore not simply:
Is KMTR's P/E low?
A better question is:
What level of normalized earnings can KMTR sustainably generate, and how much should investors pay for those earnings?
Based on the latest available data, KMTR does not look expensive on its 2025 book value or historical earnings. However, the weak first half of 2026 means investors should be careful about treating the 2025 EPS of Rp22.53 as a normal recurring earnings level.
KMTR Stock Price and Valuation Snapshot
KMTR closed at around Rp252 per share on September 18, 2026, according to market data available shortly before publication. Its 52-week trading range was approximately Rp200–Rp336.
The company had approximately 8.215 billion shares outstanding, according to its 2025 Annual & Sustainability Report.
That gives KMTR an approximate equity market capitalization of:
Rp252 × 8.215 billion shares = approximately Rp2.07 trillion
The basic valuation picture can therefore be summarized as follows:
| Metric | Approximate figure |
|---|---|
| Share price | Rp252 |
| Shares outstanding | 8.215 billion |
| Market capitalization | Rp2.07 trillion |
| FY2025 EPS | Rp22.53 |
| FY2025 P/E | ~11.2x |
| FY2025 equity attributable to parent | Rp2.14 trillion |
| Approximate book value/share | Rp260 |
| Price-to-book | ~0.97x |
| FY2025 net income attributable to parent | Rp185.1 billion |
| FY2025 revenue | Rp12.83 trillion |
| FY2025 net margin | ~1.4% |
The calculation is important because the apparent valuation changes depending on which financial period an investor uses.
The Indonesia Stock Exchange defines P/E as share price divided by EPS and P/B as share price divided by book value per share. IDX also notes that its market-data ratios are based on the latest financial statements submitted by listed companies.
1. Why KMTR Can Look Cheap on a Historical P/E
At Rp252, using FY2025 EPS of Rp22.53, KMTR trades at approximately:
Rp252 ÷ Rp22.53 = 11.2x earnings
On the surface, an approximately 11x earnings multiple does not look demanding for an established industrial company.
KMTR generated:
Revenue: Rp12.83 trillion
Operating income: Rp570.9 billion
Net income attributable to shareholders: Rp185.1 billion
EPS: Rp22.53
Revenue increased 13.93% in 2025, but net income attributable to shareholders declined approximately 5% from 2024.
That difference is one of the most important facts in the valuation.
KMTR grew sales faster than profits.
For an investor, this means the stock cannot be evaluated purely by revenue growth. The critical question is whether higher sales eventually translate into stronger margins.
2. The Margin Problem Is More Important Than the P/E
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| Kirana Megatara |
KMTR's 2025 revenue increased to approximately Rp12.83 trillion from Rp11.26 trillion in 2024.
But gross profit declined.
According to the company's 2025 Public Expose, gross profit fell from approximately Rp1.055 trillion to Rp990 billion, while operating profit declined from approximately Rp544 billion to Rp452 billion.
This produced a major valuation signal:
Revenue growth ≠ earnings growth.
The company's 2025 profitability profile was approximately:
Gross margin: 7.7%
EBITDA margin: 5.2%
Net margin: 1.4%
The company's own presentation shows that EBITDA margin declined from 6.7% in 2024 to 5.2% in 2025.
For a commodity-processing business, that matters enormously.
A small change in gross margin can have a disproportionately large effect on net income.
3. The Hidden Issue: Commodity Economics
Kirana Megatara does not operate like a software company where incremental revenue can carry very high margins.
Its business is much more sensitive to:
natural-rubber prices,
raw-material availability,
export demand,
selling prices,
exchange rates,
inventory valuation,
working capital,
and interest costs.
The company's 2025 Public Expose indicated that around 94.8% of sales volume was export-related. It also reported that sales volume increased only around 2.9%, while revenue increased 13.9%. The difference was influenced by higher rubber prices and the stronger U.S. dollar against the rupiah.
That creates an important analytical distinction:
Revenue growth driven by price is different from revenue growth driven by volume.
For investors, volume growth is generally easier to interpret as evidence of expanding business activity.
Price-driven revenue growth can reverse if the commodity cycle turns.
4. 2026 Changes the Valuation Story
This is where KMTR becomes more difficult to value.
Historical 2025 earnings suggest an approximately 11x P/E at Rp252.
But the latest 2026 results have been considerably weaker.
Market financial data shows:
| Period | Revenue | Net income |
|---|---|---|
| FY2025 | Rp12.83T | Rp185.1B |
| Q1 2026 | ~Rp2.83T | -Rp6.31B |
| Q2 2026 | ~Rp3.30T | -Rp10.30B |
| TTM to Jun. 2026 | ~Rp11.95T | ~-Rp32.0B |
The first-quarter 2026 result showed a net loss of approximately Rp6.31 billion, while the June-quarter figure was also negative at approximately Rp10.3 billion.
That means the historical P/E of roughly 11x should not be interpreted as a forward P/E.
On a trailing basis, earnings had turned negative.
This is the biggest reason the stock requires a normalized-earnings approach.
5. P/B Valuation Gives a Different Picture
Book value provides another way to look at KMTR.
The 2025 Annual Report shows approximately:
Total assets: Rp4.53 trillion
Total liabilities: Rp2.35 trillion
Equity attributable to parent: Rp2.14 trillion
Shares outstanding: 8.215 billion
The company's total borrowings were approximately Rp2.05 trillion, down substantially from approximately Rp3.24 trillion in 2024.
Using parent-company equity:
Rp2.14T ÷ 8.215B shares ≈ Rp260/share
At a share price of Rp252:
P/B ≈ 0.97x
In other words, the market was valuing KMTR at approximately its accounting book value.
That is a very different valuation message from the P/E calculation.
P/E view
Approximately 11.2x FY2025 earnings
P/B view
Approximately 0.97x FY2025 book value
For a capital-intensive commodity processor, P/B can be particularly useful because the business owns substantial working-capital and operating assets.
However, investors should not automatically assume that trading below book value means the shares are undervalued.
The key question is:
How much return can KMTR generate on that book value?
6. Return on Equity Is the Missing Piece
KMTR's 2025 net income attributable to shareholders was about Rp185.1 billion against approximately Rp2.14 trillion of equity attributable to the parent.
That implies a rough ROE of around:
Rp185.1B ÷ Rp2.14T ≈ 8.6%
This is not a high-return business at that earnings level.
That creates an important valuation relationship:
A stock trading close to book value does not necessarily deserve a premium to book value unless the company can consistently generate attractive returns on that book value.
If normalized ROE remains around 8–10%, a sub-1x P/B valuation becomes easier to understand.
If KMTR can sustainably restore double-digit or materially higher ROE, the same share price could look more interesting from a valuation perspective.
7. Debt Reduction Is a Positive Valuation Factor
One of the stronger developments in KMTR's 2025 financial statements was the reduction in borrowings.
Total borrowings declined from approximately:
Rp3.24 trillion → Rp2.05 trillion
That is a reduction of roughly 37%.
The company's debt-to-equity ratio also improved materially, from around 1.63x to 0.96x according to the company's 2025 Public Expose.
This matters because interest expense can have a large effect on KMTR's relatively thin bottom line.
Finance expenses declined from approximately Rp267.5 billion in 2024 to approximately Rp180.3 billion in 2025.
That means debt reduction has the potential to improve earnings quality.
But there is an important caveat:
Lower interest expense cannot fully compensate for deteriorating operating margins.
The business still needs healthy gross and operating margins.
8. A Simple Normalized-Earnings Valuation
Instead of assuming FY2025 earnings will continue forever, we can create several hypothetical normalized EPS cases.
These are valuation scenarios, not earnings forecasts.
Assume KMTR eventually produces:
| Normalized EPS | At 10x P/E | At 12x P/E | At 15x P/E |
|---|---|---|---|
| Rp15 | Rp150 | Rp180 | Rp225 |
| Rp20 | Rp200 | Rp240 | Rp300 |
| Rp22.53 | Rp225 | Rp270 | Rp338 |
| Rp25 | Rp250 | Rp300 | Rp375 |
| Rp30 | Rp300 | Rp360 | Rp450 |
This table shows why the normalized EPS assumption matters more than the headline P/E.
At Rp252, the stock price would require approximately Rp21–25 of sustainable EPS to support a 10–12x earnings framework.
FY2025 EPS of Rp22.53 sits inside that range.
But 2026's losses show that this level of earnings has not yet demonstrated clear sustainability.
9. A Second Valuation Method: Price-to-Book
Using approximately Rp260/share of 2025 book value, investors can also examine hypothetical P/B multiples.
| P/B Multiple | Approx. Value |
|---|---|
| 0.75x | Rp195 |
| 0.90x | Rp234 |
| 1.00x | Rp260 |
| 1.10x | Rp286 |
| 1.25x | Rp325 |
| 1.50x | Rp390 |
Again, these are valuation scenarios rather than predictions.
At approximately Rp252, KMTR was trading around 1.0x book value based on 2025 equity attributable to the parent.
That makes the market's implicit message fairly interesting:
Investors were not paying a large premium for KMTR's assets.
However, they were also not pricing the company at a deep discount to its accounting equity.
10. What Would Make KMTR Look Cheaper?
Several developments could change the valuation mathematics.
1. EPS recovery
If KMTR returns to EPS above Rp25–30, the current share price would represent a lower forward earnings multiple.
2. Margin recovery
If EBITDA margin moves back toward its earlier level, earnings could recover faster than revenue.
3. Continued debt reduction
Lower borrowing could reduce finance costs and improve earnings conversion.
4. Stronger rubber pricing
Higher selling prices can support revenue, although investors must distinguish price increases from sustainable volume growth.
5. Better working-capital efficiency
Because rubber processing requires substantial working capital, inventory and receivables management can materially affect cash generation.
11. What Could Make KMTR Look Expensive?
The opposite scenario is equally important.
Margin compression
If higher revenue continues to produce weaker gross margins, earnings may remain below 2025 levels.
Commodity-cycle reversal
Rubber prices can move significantly, potentially affecting both sales and inventory economics.
Weak export demand
With the company heavily dependent on exports, international demand is important.
Currency volatility
A significant portion of the company's business is export-oriented, making currency movements relevant to reported results.
Interest costs
Even though borrowing declined in 2025, financing remains important to the business model.
Weak 2026 earnings
The most immediate concern is that 2026 results have so far failed to reproduce 2025 profitability.
12. The Unique Analytical Angle: KMTR Is Really a Margin-Recovery Story
One way to look at KMTR that is easy to miss is this:
The investment case is less about revenue growth and more about the spread between rubber input costs and selling prices.
Suppose revenue grows 10%, but gross margin falls from 7.7% to 5%.
The additional revenue may produce little benefit for shareholders.
Conversely, if revenue remains relatively flat but gross margin improves substantially, operating profit can rise much faster.
That means investors should monitor:
Rubber price → selling price → gross margin → EBITDA → interest expense → net income
rather than simply monitoring:
Revenue → net income
This is particularly important for commodity processors.
13. What American Readers Should Watch
A U.S. investor looking at KMTR may be tempted to compare it with U.S.-listed rubber, tire, chemical, or commodity companies.
That comparison needs caution.
KMTR is an Indonesian listed company with a business model heavily linked to natural rubber processing and exports.
Its valuation is therefore affected by:
Indonesian capital-market conditions,
the rupiah,
global rubber prices,
export markets,
financing costs,
and local interest rates.
The stock also has a different liquidity profile from large U.S. equities.
Therefore, a P/E comparison with a large U.S. industrial company should not be treated as a direct apples-to-apples valuation.
14. KMTR Valuation Scorecard
Instead of asking whether KMTR is simply "cheap" or "expensive," investors can break the valuation into separate components:
| Factor | Current signal | Why it matters |
|---|---|---|
| Historical P/E | Moderate | FY2025 EPS supports ~11x P/E |
| Price/Book | Around 1x | Market price is close to accounting book value |
| Revenue growth | Positive | 2025 revenue rose 13.9% |
| Profit growth | Weak | Net income declined |
| Margins | Under pressure | EBITDA margin fell |
| Leverage | Improved | Borrowings declined substantially |
| 2026 earnings | Weak so far | H1 results were loss-making |
| Commodity exposure | High | Rubber prices materially affect economics |
| Export exposure | High | International demand and FX matter |
| Valuation visibility | Moderate/uncertain | Normalized earnings are difficult to establish |
15. So, Is KMTR Expensive or Cheap?
At around Rp252 per share, KMTR does not appear expensive when judged solely against its 2025 financial results.
The stock traded at approximately:
11.2x FY2025 EPS
and roughly:
0.97x 2025 book value per share.
Those figures indicate a relatively restrained valuation compared with what a high-growth company might command.
However, calling KMTR definitively cheap would ignore the most important recent development: 2026 profitability deteriorated significantly.
The latest quarterly data shows negative earnings, meaning the 11x historical P/E can no longer be treated as a straightforward representation of the company's current earnings power.
The more useful conclusion is:
KMTR's valuation looks reasonable to modest on normalized 2025 numbers, but the shares require evidence of earnings and margin recovery before the historical valuation can be considered representative of current earning power.
In other words, the valuation case depends heavily on whether KMTR can return to an EPS range around Rp20–30 while maintaining a healthier balance sheet.
16. What Investors Should Monitor Next
For the next KMTR financial reports, investors should focus on five numbers:
1. Gross margin
This is probably the most important operating indicator.
2. EBITDA margin
A recovery from the 2025 level of approximately 5.2% would provide evidence that operating economics are improving.
3. Finance expense
Further reductions would support bottom-line earnings.
4. Net debt and borrowings
The 2025 reduction in borrowings was significant and should be monitored for sustainability.
5. EPS
Ultimately, the market value of KMTR will depend on sustainable earnings rather than historical revenue alone.
KMTR Stock Valuation Bottom Line
Kirana Megatara's valuation is more nuanced than a simple "cheap stock" story.
At approximately Rp252, the shares were trading close to 2025 book value and at around 11x 2025 earnings. That provides some valuation support based on historical financial performance.
The problem is that 2026 earnings have weakened materially.
Therefore, the key question for KMTR investors is not:
"Is KMTR's P/E low?"
It is:
"Can KMTR restore sustainable earnings of roughly Rp20–30 per share while maintaining lower leverage and healthier operating margins?"
If earnings recover, the current valuation could become more attractive.
If weak margins and losses persist, the low historical P/E could prove misleading because the denominator—earnings—would no longer represent normalized profitability.
For that reason, KMTR should be analyzed as a commodity-cycle and margin-recovery stock rather than simply as a low-P/E stock.
Primary Sources and References
The following primary and institutional sources were used to support the financial data, business information, valuation analysis, and industry context discussed in this article.
1. PT Kirana Megatara Tbk — 2025 Annual & Sustainability Report
Primary source for company financial and operating information
PT Kirana Megatara Tbk's 2025 Annual & Sustainability Report provides the company's reported financial performance, revenue, profitability, assets, liabilities, equity, borrowings, earnings per share, share information, business operations, export activities, and management discussion.
PT Kirana Megatara Tbk — 2025 Annual & Sustainability Report
This report is the principal source for the FY2025 financial figures used in the KMTR valuation analysis.
2. PT Kirana Megatara Tbk — Investor Relations
Primary corporate source
Kirana Megatara's Investor Relations section provides access to the company's annual reports, financial statements, shareholder information, corporate disclosures, general meeting materials, and other investor-related information.
Kirana Megatara Investor Relations
For investors, the company's Investor Relations portal should be checked regularly for the latest financial statements and material disclosures.
3. PT Kirana Megatara Tbk — Financial Reports
Primary source for reported financial statements
The company's financial-reporting section provides access to financial information and supporting disclosures used to assess revenue, earnings, assets, liabilities, equity, cash flow, and other financial indicators.
Kirana Megatara Financial Reports
4. PT Kirana Megatara Tbk — 2026 Quarterly Financial Statements
Primary source for the latest operating trend
Kirana Megatara's consolidated financial statements for the period ended March 31, 2026 provide an important reference for evaluating whether the company's FY2025 earnings remain representative of its current earnings power.
KMTR Consolidated Financial Statements — March 31, 2026
These statements are particularly relevant when comparing historical FY2025 profitability with subsequent 2026 performance.
5. Indonesia Stock Exchange (IDX)
Primary market and listed-company reference
The Indonesia Stock Exchange (IDX) is the principal institutional source for information concerning companies listed on the Indonesian capital market, including KMTR.
Indonesia Stock Exchange (IDX)
IDX information is relevant for understanding listed-company disclosures, market data, financial ratios, and the Indonesian equity-market framework.
6. Financial Services Authority of Indonesia (OJK)
Official regulatory source
Indonesia's Financial Services Authority (OJK) provides regulatory and market information concerning publicly listed companies, capital markets, corporate disclosures, and investor protection.
Financial Services Authority of Indonesia (OJK)
OJK publications can provide additional regulatory and issuer-level context for publicly listed Indonesian companies.
7. PT Kirana Megatara Tbk — Sustainability Information
Primary source for environmental, social, and governance context
Kirana Megatara publishes information concerning sustainable natural-rubber practices, farmer welfare, environmental protection, operational efficiency, employee and community considerations, and corporate governance.
Kirana Megatara Sustainability
This source is useful when assessing the broader operating and sustainability risks associated with a natural-rubber processing business.
8. World Bank — Commodity Markets Outlook
Institutional source for natural-rubber market conditions
The World Bank's Commodity Markets Outlook provides independent macroeconomic and commodity-market analysis, including information concerning natural-rubber prices, global supply, demand, weather-related disruptions, and automotive-sector demand.
World Bank Commodity Markets Outlook — October 2025
This source provides useful industry context because natural-rubber prices and global tire demand can influence the economics of rubber-processing companies.
9. World Bank — Natural Rubber Market Analysis
The World Bank has also highlighted the relationship between natural-rubber prices, global production, automotive demand, and supply conditions. Its commodity analysis is useful for understanding the cyclical factors affecting rubber-related businesses.
World Bank — Raw Material Prices and Natural Rubber Market Analysis
How These Sources Were Used
The primary company sources were used for:
FY2025 revenue and net income
Earnings per share
Equity attributable to shareholders
Book value per share
Total assets and liabilities
Borrowings and leverage
Finance expenses
Profit margins
Sales volume and export exposure
Share count
2026 financial performance
Company business and operating information
Institutional sources were used to provide broader context regarding:
Indonesian capital-market regulation
Listed-company disclosure requirements
Natural-rubber commodity cycles
Global rubber supply and demand
Automotive and tire-industry demand
Commodity-price risks
Source Priority
For financial figures, WorldReview1989 gives priority to company-issued documents and official market/regulatory sources over third-party financial websites.
Third-party market-data providers may be useful for cross-checking prices or calculations, but they should not replace the company's audited or officially published financial statements when reporting fundamental financial information.
Important: Valuation calculations presented by WorldReview1989 are analytical calculations based on publicly available financial data. They represent research and educational analysis, not investment advice or a recommendation to buy or sell KMTR shares.
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David Mulyana is the founder and editor of WorldReview1989, an independent publication dedicated to finance, investing, insurance, business, technology, and digital marketing.
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