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Anand Rathi has buy call on with a target price of Rs 1411. The current market price of KSB is Rs 1175.

Time period given by analyst is one year when KSB price can reach defined target.

KSB Ltd., incorporated in the year 1960, is a Small Cap company (having a market cap of Rs 4092.53 Crore) operating in Irrigation & Allied Services sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 311.40 Crore, down -19.91 % from last quarter Total Income of Rs 388.80 Crore and up 37.91 % from last year same quarter Total Income of Rs 225.80 Crore. Company reported net profit after tax of Rs 26.00 Crore in latest quarter.

Investment Rationale
Strong opportunities exist for KSB in the next 2-5 years in FGD, nuclear power (NPCIL), O&G and exports. Such prospects would boost after- market and services (19% of its sales). Led by both pumps and valves, Q2 CY21 revenue was up 38% y/y. Cost savings and efficiencies, pricing and a favourable product-mix continue to benefit it, leading to a healthy 14.8% EBITDA margin in H1 CY21 (13.9% in CY20). With a strong H1 CY21, the brokerage has raised estimates. Strong operations, execution abilities, sturdy margin expansion and attractive valuations keep upbeat.

Promoter/FII Holdings
Promoters held 66.7 per cent stake in the company as of June 30, 2021, while FIIs held 2.6 per cent, DIIs 11.6 per cent and public & others 19.2 per cent.

(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.

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