Firstcall Research has recommended hold rating on Kirloskar Pneumatic with a target of Rs 540, in its December 27, 2012 research report.
“ Kirloskar Pneumatic Company
Ltd is one of the core group companies. KPCL was incorporated in 1958 under the chairmanship of Late Shri Shantanurao Kirloskar. KPCL has also established a number of joint ventures and technology partnerships with leading global companies. It has earned the distinction of developing a host of advanced products to suit Indian conditions and has been continuously updating them to maintain the highest standards of quality and reliability. The company started its operations with the manufacture of Air Compressors and Pneumatic Tools. New product lines were they added included Air Conditioning and Refrigeration systems, Marine HVACR, Process Gas systems and Hydraulic Power Transmission machinery.”
“The company has also earned an enviable reputation for its Systems Engineering and Turnkey Project expertise. Kirloskar Pneumatic Company Ltd has developed various sophisticated and high-tech products in the above categories to cater to the demands of various industrial sectors. While doing so, the company will always keeps in mind the best interest of all stakeholders and actions will be guided by the company. It realize and equal concern towards the nature and Society to take all efforts towards betterment of the same. Kirloskar Pneumatic Company Ltd (KPCL), is an ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007.”
“Kirloskar Pneumatic Ltd is a flagship of Kirloskar Group, manufacture of Air Compressors and Pneumatic Tools in India, reported its financial results for the quarter ended 30 Sep, 2012. The company’s net profit slap down towards to Rs.108.60 million against Rs.117.00 million in the corresponding quarter ending of previous year, an decrease of 7.18%. Revenue for the quarter improved 7.81% to Rs.1337.00 million from Rs.1240.20 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.8.46 a share during the quarter, registering 7.18% decrease over previous year period. Profit before interest, depreciation and tax is Rs.187.80 millions as against Rs.177.60 millions in the corresponding period of the previous year.”
“At the current market price of Rs 482, the stock P/E ratio is at 8.75 x FY13E and 7.94 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.52.10 and Rs.57.39 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 19% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 5.27 x for FY13E and 4.82 x for FY14E. Price to Book Value of the stock is expected to be at 1.97 x and 1.58 x respectively for FY13E and FY14E. We recommend ‘HOLD’ in this particular scrip with a target price of Rs 540 for medium to long term investment,” says Firstcall Research report.
Institutional holding more than 40% in Indian cos
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