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Last Updated : May 09, 2019 04:36 PM IST | Source:

Buy KSB; target of Rs 810: ICICI Direct

ICICI Direct is bullish on KSB has recommended buy rating on the stock with a target price of Rs 810 in its research report dated April 25, 2019.

Broker Research @moneycontrolcom
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ICICI Direct's research report on KSB

KSB Ltd reported an outperformance across all operational parameters in Q1CY19. Standalone revenue, EBITDA and PAT recorded growth of 36.1%, 58.2% and 40.2%, respectively, YoY. Topline growth was driven partly by higher order execution from the oil & gas and exports segments. Standalone revenues for Q1CY19 were at Rs 289.3 crore wherein the pumps segment contributed Rs 243.1 crore (up 40.7% YoY) while valves contributed Rs 46.2 crore (up 17.2%). EBITDA margins were at 11.0%, up 150 bps YoY due to benefits of operating leverage slightly offset by elevated input costs. Consequent standalone PAT was at Rs 15.7 crore.


KSB has a debt free balance sheet with surplus cash of ~Rs 139 crore. Over CY18-20E, we expect KSB to clock sales, EBITDA & PAT CAGR of 13.5%, 19.9% & 26.8%, respectively. Core RoICs are also expected to improve to 17.2% by CY20E vs. 13.6% in CY18. We value KSB at Rs 810 i.e. 24.5x P/E on CY20E EPS of Rs 33.1 and retain our BUY rating on the stock.

For all recommendations report, click here

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First Published on May 9, 2019 04:36 pm
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