KSB Ltd. share price target

Nuclear growth; diversified opportunities to drive earnings : KSB Ltd is a leading manufacturer of pumps and valves. KSB specializes in centrifugal end suction pumps, high pressure multistage pumps, industrial gate, globe, check valves, submersible motor pumps, monobloc & mini monobloc pumps,...

Gradual earning recovery backed by nuclear ramp up specializes in centrifugal end suction pumps, high pressure multistage pumps, industrial gate, globe, check valves, submersible motor pumps, monobloc & mini...

We hosted the investor analyst meet for KSB Ltd (not rated) on Feb 28, ‘23. Key takeaways: 1) Highest-ever order intake of Rs20.5bn in CY22; management is confident of Rs25bn order intake and sales of Rs22bn in CY24, current orderbook stands at Rs25bn (including NPCIL order).

We hosted the investor analyst meet for KSB Ltd (not rated).

Service revenues, newly launched pumps to aid topline ahead Services revenue almost doubled to | 80-90 crore in CY19. The management believes the service business has potential to grow ~2x from present level in the next three to four years. Further, the service business has higher margins vs. the traditional business, resulting in better OPM for the overall group in the medium term. Apart from this, the company has launched gamma pump recently, which the management believes has higher traction towards wastewater treatment and can aid better topline growth ahead....

KSB reported a robust performance on an overall basis in Q2CY19. Standalone revenue, EBITDA and PAT recorded growth of 19.0%, 12.2% and 29.9% YoY, respectively, YoY. Topline growth was likely driven by healthy order execution from the oil & gas and exports segment. On a segmental basis, pumps contributed | 248 crore (up 13.8% YoY) while valves contributed | 56 crore (up 52.9% YoY). EBITDA margins declined ~70 bps YoY to 10.6% due to higher input costs. EBIT margin for the pumps was at 8.9%, down 80 bps YoY. However, operating leverage helped boost...

Strong demand, capacity addition to drive growth ahead Engineered (Industrials), Standard (agriculture, building solutions) and exports segments contributed ~45%, 27% and 14%, respectively, to the topline in CY18. In the industrials space, the company has seen traction in the oil & gas sector wherein KSB is set to benefit from upgradation capex by refineries to comply with fuel emission control norms. In addition, exports and after-market segments are expected to aid growth in CY19E. KSB has seen robust order execution in Q1CY19. Consequently, the current order...

ICICI Securities Ltd | Retail Equity Research Total operating income in Q4CY18 came in at | 346.6 crore, up 5.6% YoY. In terms of segmental break-up, the pumps division reported sales at | 287 crore, up 3.8% YoY while the valves division reported sales at | 60 crore, up 15.4% YoY EBITDA margins in Q4CY18 came in healthy at 13.8% in Q4CY18. The corresponding EBITDA was at | 47.9 crore. The EBIT margin for the valves segment improved to 10.5% (10.4% in Q4CY17). PAT in...

Margins Contraction in Pumps Segment Continued: The company's revenues have grown by 39.9% YoY due to growth in pumps and valves segment, EBITDA margins improved by 92 bps majorly due to improvement in margins of Valves segment.

ICICI Securities Ltd | Retail Equity Research KSB Pumps (KSB) reported a stellar Q3CY18 performance Total operating income in Q3CY18 came in at | 280.4 crore, up 39.9% YoY. In terms of segmental break-up, the pumps division reported sales at | 239 crore, up 49.7% YoY while the valves division reported sales at | 42 crore, up 2.4% YoY EBITDA margins in Q3CY18 came in healthy at 11.4% in Q3CY18. Corresponding EBITDA was at | 32.1 crore. The EBIT margin for the...

ICICI Securities Ltd | Retail Equity Research We recently attended the analyst meet of KSB pumps (KSB). KSB is a leading pump and valves manufacturer domestically and is promoted by KSB AG, Germany, world leader in pumps segment. It has a presence across India through seven manufacturing facilities, four service stations, 150+ authorised service centres and 800+ authorized dealers. KSB is well integrated with its own foundry. It is the one of the only domestic players eligible to participate in the nuclear power segment and with...

Margins Contraction in Pumps Segment Continues:The company's revenue has grown by 13.7% YoY due to growth in pumps and valves segment, EBITDA margins improved by 65 bps majorly due to improvementin margins of valves segment.

ICICI Securities Ltd | Retail Equity Research KSB Pumps (KSB) reported a healthy Q2CY18 performance Net sales in Q2CY18 came in at | 253.6 crore, up 20.6% YoY. Pump segment sales were at | 218 crore, up 22.1% YoY while valves segment sales were at | 36 crore, up 12.1% YoY EBITDA for the quarter came in at | 28.6 crore with corresponding EBITDA margins at 11.3%. Valves segment continued to remain EBIT positive with EBIT margins at 5% vs. -1.5% in the base quarter...

The company's performance was below our expectations lagging by 8% in revenues.There is a margin contraction in pumps segment which is down by 145 bps. The revenue for Q1CY18 Rs. 2128 mn was marginally down as against Rs. 2174 mn showing a decline of 2.3%. The increase in depreciation expense due to capacity expansion and lower other income impacted EBIT which was down by 10.3%.

KSB Pumps (KSB) reported a soft Q1CY18 performance given the deferral of certain power sector orders to the following quarters Total operating income in Q1CY18 came in at | 212.5 crore, up 3.4% YoY. Pumps division reported sales at | 173.0 crore, down 0.8% YoY while valves division reported sales at | 40 crore, up 23.3% YoY EBITDA margins for the quarter were muted at 9.5% (down 42 bps YoY) mainly due to poor sales growth in pumps coupled with raw material cost pressures. The corresponding EBITDA was at | 20.1...