Engineering stock engaged in designing, manufacturing, and commissioning customized equipment and systems, with Reliance, Mondelez, Pepsi, and many well-known companies as its customers jumped 3 percent in the day’s trade following acquisiton of a global leader company to enhance its portfolio.
Price Action
With a market capitalization of Rs. 2,000 Crores, the shares of Kilburn Engineering Limited were trading at Rs. 478.20 per equity share, down 0.35 percent from its previous day’s close price of Rs. 479.90. It has delivered a return of 210 percent in a year.
What Happened
The Board of Directors of Kilburn Engineering Limited have approved the proposed acquisition of 100 percent stake in Monga Strayfield Pvt. Ltd. for a consideration of Rs. 123 Crores, aimed at a strategic and synergistic partnership that will enhance Kilburn’s portfolio and broaden its reach across various industries.
Monga Strayfield Pvt. Ltd. is a global leader in the radio frequency drying and heating solutions, alongside a strong presence in the sheet metal fabrication industry, catering to both the USA and European markets. In FY24, it reported a total revenue of Rs. 72.90 Crores, a PAT of Rs. 15.41 Crores, and a closing cash balance of Rs. 33.28 Crores.
Benefits of Acquisition
The proposed acquisition of Monga Strayfield will significantly augment Kilburn Engineering’s drying solutions portfolio, adding new capabilities in radio frequency drying and heating, while expanding its reach into industries such as textiles and packaged foods. Additionally, Monga Strayfield’s expertise in sheet metal fabrication offers a separate vertical that strengthens Kilburn’s position in international markets.
MD Message
Commenting on the acquisition, Mr. Ranjit Lala, Managing Director of Kilburn Engineering Ltd., said, “We are delighted to bring Monga Strayfield into our fold and are excited to leverage their domain knowledge in radio frequency drying and sheet metal fabrication. This acquisition complements Kilburn’s offerings and enables us to serve a broader customer base with enhanced solutions.”
About the Company
Kilburn Engineering Limited is primarily engaged in designing, engineering, manufacturing, and commissioning customized equipment and systems for various process plants. It is a market leader in solid, liquid, and gas drying systems. It has a strong order book of Rs. 324.66 Crores.
It has diversified offerings and bespoke solutions like Customized Industrial Drying Systems, Customized Package Systems, Fabricated and large critical equipment, and Standard Products related to drying catering to sectors like Chemical, Steel, Nuclear Power, Petrochemicals, Food Processing, and many more.
It has a strong customer base with well-known players like Mondelez, Pepsico, Cipla, Dr Reddy’s, Balkrshna Tyres, PCBL, Pepsi, Indian Oil, Adani Wilmar, Reliance Industries, BHEL, GNFC, ONGC, and many more.
Financials and Ratios
Its revenue from operations declined by 4.3 percent from Rs. 67 Crores in Q1FY24 to Rs. 64 Crores in Q1FY25, accompanied by profits of Rs. 7 Crores to Rs. 11 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 22.7 percent, and a Return on capital employed (ROCE) of 26.7 percent. It has reported a debt-to-equity ratio of 0.30.
Written by: Bharath K.S
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