KSB shares rose 9 percent to Rs 2,128 in intraday trading on Friday, in an otherwise weak market. Shares of the company, one of the world’s leading suppliers of pumps, valves and systems, traded near its record level of Rs 2,171, which it had touched on 13 October 2022, in a healthy position on the order book.
In the past 10 trading days, KSB shares are up 15 percent, after posting outstanding growth in the fourth quarter, Oct. 22-Dec. 22 (Q4CY22). Net profit rose 43% year-on-year (YoY) to Rs 54.2 crore from Rs 37.9 crore, in the same quarter a year earlier. Sales also grew 18% yoy to Rs 524.6 crore, while operating profit margin improved 200 basis points (bps) to 15% from 13% in Q4FY21.
The company has maintained profitability growth through meticulous planning, continued cost savings, and operational synergies.
KSB said it has the highest ever order intake of Rs 2,045.6 crore in 2022. The company scaled new highs this quarter, thanks to significant order intake from almost all segments such as firefighting, nuclear , energy, commercial buildings, solar, wastewater, agriculture. and domestic too.
Management believes that demand for capital products will grow further, due 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 block pumps and other value added parts. His client portfolio includes Bhel, Thermax, Isgec, Patil Engineering, RK Engineering, L&T, Pooja Engineering, NTPC and ThyssenKrupp.
ICICI Securities analysts believe strong traction in the mechanical, petrochemical and nuclear seals segment, focus on increasing service and parts share through BP&CL, and new product launches in the national standard pumps segment are factors. key triggers for future price performance.
The brokerage said it remains positive and maintains a ‘buy’ rating on the shares, with a price target of Rs 2,390 per share.
At 12:59 p.m.; KSB traded 6 percent higher at Rs 2,063.05, compared with a 1.3 percent drop in the S&P BSE Sensex.
Average over-the-counter trading volumes increased sixfold as around 266,000 equity shares changed hands on the NSE and BSE.