KSB Limited bags an order for a solar water pumping system under the PM-Kusum III Scheme!

KSB Limited, a prominent and leading company that manufactures a range of standard Industrial end suction and high-pressure multistage pumps, submersible motor pumps, and monoblock pumps based in India, has made a significant announcement regarding orders received by the company.

As detailed in the official report, KSB Limited announced that it has been granted a letter of award under Component B of the PM-Kusum III Scheme, amounting to Rs 27.78 crore.

This award is for the supply of 800 solar water pumping systems to the Department of Agriculture in Uttar Pradesh. The anticipated product/service delivery for these orders is scheduled for the fourth quarter of the fiscal year 2023.

Today, the company’s shares began trading at Rs 2865, marking a flat opening from the previous day’s closing price of Rs 2860.55. They reached an intraday high of Rs 3001 each on the BSE and finally closed the session at Rs 2931.60 each on the BSE, representing a gain of 2.5%.

The market capitalization of the company is Rs 10,204 crore. Additionally, the stock has delivered a return of 36% in the last three months and 538% in the last three years.

Company Profile

KSB Limited is an India-based company engaged in the manufacturing of various types of power-driven pumps and industrial valves. It operates manufacturing plants in Pimpri-Chinchwad, Khandala, Vambori, Coimbatore, and Sinnar. The company operates through three segments: Pumps, Valves, and KSB SupremeServ.

The Pumps segment is involved in the manufacturing and trading of all types of pumps, including industrial pumps, submersible pumps, effluent treatment pumps, and associated spares and services. The Valves segment is dedicated to the manufacturing and trading of industrial valves, along with associated spares and services.

The KSB SupremeServ segment encompasses all service and spare parts activities, specialising in centrifugal end-suction pumps, high-pressure multistage pumps, industrial gate, globe, and check valves, submersible motor pumps, monobloc and mini monobloc pumps, hydro-pneumatic systems, and control valves.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced a significant increase of 32% YoY, rising from Rs 448 crore to Rs 591 crore. The company reported an operating profit of Rs 85 crore, compared to an operating profit of Rs 61 crore in the corresponding quarter last year, resulting in an operating profit margin of 14%.

Meanwhile, the net profit of the company amounted to Rs 63 crore, marking a 34% increase compared to the corresponding quarter’s profit of Rs 47 crore last year. Even on a sequential basis, net profit grew by 1.5 times in Q1 FY24, rising from Rs 47 crore in Q4 FY23 to Rs 63 crore. This is also reflected in the company’s EPS growth, which increased from Rs 13.62 per share to Rs 18.04 per share.

Furthermore, on September 21, 2023, the stock hit a significant price level of Rs 3000 per share on the BSE. Investors must keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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