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.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
