Buy KSB Pumps; target of Rs 260: P Lilladher
Brokerage house Prabhudas Lilladher is bullish on KSB Pumps and has recommended 'Buy' rating on the stock with a price target of Rs 260 in its research report dated July 17, 2013.
July 19, 2013 / 11:16 IST
Prabhudas Lilladher's report on KSB Pumps
"KSB Pumps is one of the leading suppliers of pumps and valves in India. The company products have an application across a wide spectrum of industries which makes it the key beneficiary in case of a turn in cycle. We expect the stock to deliver earnings CAGR of 18 percent over CY12-14E. KSB has very strong balance sheet and return ratios as also a free cash flow yield of ~6 percent on CY14 basis. We expect the company to generate free cash of ~Rs1bn over CY12-14E. We expect RoE to improve by 180bps over CY12-14E. We believe that strong character of balance sheet and good management is likely to restrict downside on valuation and support fast re-rating once the cycle turns. We rate the stock 'BUY' with a TP of Rs 260," says Prabhudas Lilladher research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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