Anand Rathi's research report on KSB
We believe KSB is well placed to benefit from strong opportunities in FGD, nuclear power, O&G and exports. Such prospects would also boost its after-market and services (15% of its sales) due to increased installed base and expansion in dealer network and service centres. Q4CY21 results were a mixed bag with revenue ahead of estimates due to strong execution. However, increased raw material cost impacted the profitability. CY21 order inflows were of Rs15bn (Rs13bn in CY20) and the management targets Rs25bn order intake in CY24. The favourable demand environment, execution abilities and attractive valuations keep us upbeat.
Outlook
However, due to raw material volatility, we have tweaked our estimates, arriving at a target price of Rs1,352, 25x CY23e P/E. We retain a Buy.
More Info
At 12:45 hrs KSB was quoting at Rs 1,060.40, up Rs 4.40, or 0.42 percent.
It has touched an intraday high of Rs 1,060.90 and an intraday low of Rs 1,036.00.
It was trading with volumes of 334 shares, compared to its thirty day average of 1,594 shares, a decrease of -79.05 percent.
In the previous trading session, the share closed down 4.89 percent or Rs 54.35 at Rs 1,056.00.
The share touched its 52-week high Rs 1,409.10 and 52-week low Rs 739.25 on 01 November, 2021 and 04 March, 2021, respectively.
Currently, it is trading 24.75 percent below its 52-week high and 43.44 percent above its 52-week low.
Market capitalisation stands at Rs 3,691.02 crore.
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