The shares of a Small-cap Engineering stock were in focus in the day’s trade after announcing the successful acquisition of Monga Strayfield Pvt. Ltd., a pioneer in developing radio frequency (RF) drying and heating solutions.
Acquisition details
In a press release dated January 28, 2025, Kilburn Engineering Ltd, a leading provider of industrial drying and heating solutions, announced the successful acquisition of a 100 percent stake in Monga Strayfield Pvt. Ltd., a global leader in radio frequency (RF) drying and heating technologies.
The acquisition, valued at ₹123 crore was completed on January 27, 2025, and will boost Kilburn’s market position and expand its offerings in key industrial sectors. This acquisition is in line with Kilburn’s strategic goals, enhancing its existing portfolio and positioning the company for faster growth. Kilburn anticipates the acquisition will contribute approximately ₹80 crore to its topline and be accretive to its margins.
The acquisition is a combination of Cash and non-cash consideration, cash consideration of Rs 103 Crores, and the balance of Rs 20 Crores by way of allotment of Equity shares of Kilburn Engineering Ltd to certain existing shareholders of Monga Strayfield Pvt. Ltd.
Share Price Movement
The shares of Kilburn Engineering Ltd, with a market capitalization of Rs 1,812.37 Crores as of Tuesday closed at Rs 382, 5.3% down from its previous close of Rs 403 per share. In the past 6 months, the stock generated -8.5%, in the past year it generated 40% returns, and in the past 5 years, it generated 1,339% returns.
Management Commentary
Mr. Amritanshu Khaitan, Director, Kilburn Engineering Ltd. expressed enthusiasm about the acquisition of Monga Strayfield Pvt. Ltd., and noted that the acquisition expands Kilburn’s capabilities, particularly in RF drying for textiles and packaged food sectors. He also mentioned that Monga Strayfield’s expertise in sheet metal fabrication would further enhance Kilburn’s global presence. The acquisition is expected to be accretive to shareholder value, given Monga Strayfield’s strong margins and established customer base, positioning Kilburn for global leadership in drying and heating solutions.
About Kilburn Engineering Ltd
Kilburn Engineering Ltd. is a leading player in the field of industrial drying, heating, and allied technologies, offering a comprehensive range of products and solutions for diverse industries. With a focus on innovation and sustainability, the company has built a strong reputation for providing cutting-edge, energy-efficient solutions that address the evolving needs of its global customer base.
On a standalone basis, The company reported a 14% growth in Revenues, from Rs 68.5 Crores in Q2FY24 to Rs 78.3 Crores in Q2FY25. Similarly, the company reported a 38% increase in Net Profits from Rs 10 Crores to Rs 13.8 Crores during the same period.
About the Target Company- Monga Strayfield Pvt. Ltd
Monga Strayfield Pvt. Ltd. is a pioneer in the development of radio frequency (RF) drying and heating solutions. It has been a trusted partner to businesses in sectors such as textiles, packaged foods, and more, with over 50 years of industry experience. It also specializes in sheet metal fabrication, serving markets across the USA and Europe.
The company’s total revenue from operations stood at Rs 73 Crores in FY24, PAT at Rs 15.4 Crores, and cash and bank balances at Rs 33.3 Crores during the same period.
Written by Adhvaitha Nayani
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