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Kirloskar Brothers has target of Rs 280: K Kotak
Kamlesh Kotak, Vice President Research at Asian Markets Securities is of the view that Kirloskar Brothers has one year target of Rs 280. It is a pump manufacturing company also having a good presence in project related activities with main focus on water business.
Kamlesh Kotak, Vice President Research at Asian Markets Securities is of the view that Kirloskar Brothers has target of Rs 280.
Kotak told CNBC-TV18, "Kirloskar Brothers is a pump manufacturing company also having a good presence in project related activities with main focus on water business. This is going to be a big investment opportunity for the government and Kirloskar is having good presence across segment to capitalize on that."
He further added, "The company's FY09 performance was not that great because of the raw material price hike and the interest cost which was soaring that time. Now that the things have been rectified quite a lot, the company is going to post better show. Its order book is Rs 4,200 crore; this is almost 1.8 times its FY09 sales."
"Company has got four subsidiaries, which has given them good leverage across the verticals of water business from waster water treatment to the construction and also a captive foundry. The target price we have on the stock of one year is Rs 280 and also an interesting thing is demerging their investments group companies into Kirloskar Pneumatic Company Limited and Kirloskar Oil Engines Ltd - that's going to unlock the value. So overall we are seeing a good upside of more than 40% from the current target as we see."
Disclosure: Analyst doesn't has the above stock but has recommended them to his clients.
