Kirloskar Pneumatic stock hits fresh high after stellar Q4 results; analysts positive on firm's growth

Kirloskar Pneumatic stock continued to gain for the second day in a row, skyrocketing 18 percent on April 26, making a fresh all-time high at Rs 1,076.7 after the company’s net profit nearly doubled year-on-year in Q4FY24.

The company’s net profit jumped 86.82 percent to Rs 60.23 crore in the quarter ended March 2024 as against Rs 32.24 crore in the same period the previous year. Revenue from operations rose 36.26 percent to Rs 489.96 crore against Rs 359.58 crore in the same period.

Demand for the company's products remained strong with the new order booking in the year at a record of Rs 1,770 crore, nearly Rs 500 crore higher than the previous year, management said in the conference call post-results announcement.

Further, the company expects to book more than Rs 400 crore of orders per quarter and focuses on domestic sales and new products to increase the order book.

Also, the management said that the company is looking to launch new products in 2026-2027, specifically the Tezcatlipoca centrifugal compressor market in India.

“Adjusted PAT beat our estimates broadly due to the execution of high-margin orders and controlled other expenses. The management is walking the talk with regards to closing the order book that gives us security on strong revenue growth for FY25 (~27 percent), on track to reach Rs 2 billion revenue by FY26 as guided. We remain positive about the growth prospects of KPCL,” said Sahil Sanghvi of Monarch Networth Capital.

KPCL declared a final dividend of 200 per cent at Rs 4 per share, in addition to the interim dividend of 125 percent, bringing the total dividend to Rs 6.5 per share.

The stock has gained over 50 percent year-to-date. On April 25, it closed 14.73 percent higher at Rs 913. The stock is trading above the 20, 50, 100 and 200 daily moving averages (DMA).

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