KSB Ltd. share price forecast

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...

ICICI Securities Ltd | Retail Equity Research KSB Pumps (KSB) reported a robust Q4CY17 performance. The impressive showing was witnessed in both pumps & valves segment Total operating income in Q4CY17 came in at | 328.2 crore, up 30.6% YoY. Pumps division reported sales at | 276 crore, up 34.1% YoY while valves division reported sales at | 52 crore, up 19.4% YoY EBITDA margins for the quarter came in at 12.9% (down 153 bps YoY) mainly due to higher than anticipated raw material costs. The...

KSB Pumps (KSB) is a leading pumps & valves manufacturer domestically. It realises ~80% of sales from the pump segment and remaining ~20% of sales from the valves segment Within the pumps segment, it realises 35% of sales from the standard product meant primarily for irrigation (agriculture) purposes. It realises remaining 65% of sales from the engineered pump segment (industrial). Hence, it is one of the unique propositions that offers a twin play of agri and industry and would be...

ICICI Securities Ltd | Retail Equity Research KSB Pumps (KSB) reported a stellar Q3CY17 performance with the company displaying higher double digit growth in topline (24%) after a long with a stable EBITDA margin profile of 10.5% Total standalone revenues came in at | 200.5 crore, up 24.1% YoY with pump sales at | 159 crore, up 22% YoY and valves sales at | 41 crore, up 53% YoY. Valves segment reported EBIT margins of 6.6% Standalone EBITDA in Q3CY17 came in at | 21.1 crore while PAT for...

Total standalone revenues came in at | 210.3 crore, up 3.6% YoY Standalone EBITDA in Q2CY17 came in at | 23.8 crore (EBITDA margins at 11.3%). Standalone PAT in Q2CY17 was at | 15.4 crore KSB is due to commission its new manufacturing facility in H2CY17E, which amid incremental capex of domestic refineries (change in euro norms) and increasing thrust on irrigation projects (lift irrigation) will drive the next leg of growth, going forward KSB previously supplied pump to NPCIL. Hence, it would be a key...

KSB Revenues Flat; Large Orders Under Execution: Revenue (net) for KSB grew YoY by meagre 0.6% to Rs.4157mn in H1CY17 while the same for Q2CY17 grew by 3.6% to Rs.2,102mn. In terms of segmental performance, Pumps segment revenue reached to Rs.3725mn while for the Valves segment grew by 1.7% to Rs.681mn inH1CY17 while revenues for Pumps and Valves grew by 3.1% and 3.8% to Rs.1,890mn and Rs.343mn respectively in Q2CY17.

ICICI Securities Ltd | Retail Equity Research KSB Pumps (KSB) reported a subdued Q1CY17 performance largely tracking a de growth in the pumps segment (down 3% YoY) Total standalone revenues came in at | 205.5 crore, down 2.2% YoY Standalone EBITDA in Q1CY17 came in at | 20.2 crore (EBITDA margins at 9.9%). Standalone PAT in Q1CY17 was at | 13.3 crore At the AGM, KSB guided for early commissioning of its new facility in Satara, which will initially manufacture engineered pumps...