Shares of this small-cap stock jumped around 12 percent after releasing financial results for Q1FY23-24. In the last six months, the company’s stock has gained over 40 percent from Rs 1,799.10 to the current price level.
The stocks of KSB Limited opened their trading hour at Rs 2,360.10 and currently are available for Rs 2,567 indicating a gain of approximately 12 percent as compared to the previous closing price of Rs 2,301.90 apiece. Moreover, the scrip hit its 52-week high mark today recorded at a price of Rs 2,597.95.
Such sharp movements in the stock prices were observed after the company, through a regulatory filing with the BSE dated 2nd August 2023, announced the financial results for the quarter ending June 2023.
On a sequential basis, the company reported an increase in basic operational parameters such as revenues and net profits. The revenues took a shift from Rs 490 crores during Q4FY22-23 to Rs 591 crores during Q1FY23-24, and, the net profits, during the same time horizon, rose from Rs 41 crores to Rs 63 crores indicating an increase of 54 percent.
Comparing Q1FY22-23 with Q1FY23-24, the above-mentioned metrics showed decent growth with the revenues shifting from Rs 448 crores to Rs 591 crores, and, the net profits rising from Rs 47 crores to Rs 63 crores.
Historically, the company, following a calendar year, reported healthy profitability ratios with the return on equity (RoE) increasing from 14.77 percent during FY20-21 to 15.98 percent during FY21-22, and, the return on capital employed (RoCE) moving up from 18.75 percent to 20.47 percent.
The latest shareholding data of the company, as per the June 2023 quarter, the Promoters hold a 66.69 percent stake, and the Foreign Institutional Investors (FIIs) hold a 3.43 percent stake in the company.
KSB Limited is engaged in the business of providing pumps, valves, and related services. The company carries out its operations under three broad segments, viz, the ‘Pumps’ segment, generating a major chunk of revenues, the ‘Valves’ segment, and the ‘KSB SupremeServ’ segment comprising spare parts for the pumps and valves.
Written by Amit Madnani
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