Shares of KSB surged 9 per cent to Rs 2,128 in Friday’s intra-day trade, in otherwise a weak market. The stock of the company, one of the world’s leading suppliers of pumps, valves and systems, traded close to its record high level of Rs 2,171, which it had touched on October 13, 2022, on healthy order book position.
In the past 10 trading days, shares of KSB rallied 15 per cent, after they recorded outstanding growth in the fourth quarter- Oct’22 to Dec’22 (Q4CY22). Net profit jumped 43 per cent year-on-year (YoY) to Rs 54.2 crore from Rs 37.9 crore, in a year ago quarter. Sales, too, grew 18 per cent YoY to Rs 524.6 crore, whereas operating profit margin improved 200 basis points (bps) to 15 per cent from 13 per cent in Q4FY21.
The company has maintained growth in profitability through meticulous planning, continuous cost saving, and operational synergies.
KSB said it has highest ever order intake of Rs 2,045.6 crore in 2022. The company scaled new highs this quarter, on the back of significant order inflow from almost all segments like firefighting, nuclear, energy, commercial building, solar, waste water, agriculture and domestic too.
The management believes that the demand for capital products will further grow, owing to increased capital investment in infrastructure in this budget.
KSB manufactures a range of standard industrial end suction and high pressure multistage pumps, submersible motor pumps and monoblock pumps and other value-added parts. Its client portfolio includes Bhel, Thermax, Isgec, Patil Engineering, RK Engineering, L&T, Pooja Engineering, NTPC, and ThyssenKrupp.
Analysts at ICICI Securities believe that the strong traction from nuclear, petrochemical and mechanical seal segment, focus on increasing share in services & spares through BP&CL, and launch of new products in domestic standard pumps segment are key triggers for future price performance.
The brokerage firm said it continues to remain positive and retain ‘buy’ rating on the stock, with a target price of Rs 2,390 per share.
At 12:59 pm; KSB traded 6 per cent higher at Rs 2,063.05, as compared to 1.3 per cent decline in the S&P BSE Sensex.
The average trading volumes on the counter jumped six-fold, as around 266,000 equity shares changed hands on the NSE and BSE.
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