1:5 Stock Split Declared: Record Date To Be Fixed In Due Course; Buy The Stock To Be Eligible?

In the capital goods industry, KSB Ltd is a well-known firm. As of Friday's closing session on the BSE, its market capitalization was Rs 16,283.63 Cr. Centrifugal end suction pumps, high-pressure multistage pumps, check valves, industrial gates, globes, submersible motor pumps, monobloc and mini monobloc pumps, hydropneumatic systems, and control valves are among the specialities of KSB. KSB Limited and MIL Controls Ltd. are the two Indian firms controlled by KSB. One of the top producers of pumps, valves, systems, and control valves worldwide is KSB, based in India. The primary headquarters of KSB Limited, which was established in 1960, is located in Pune, Maharashtra. The corporation released its financial results for the quarter that ended on March 31, 2024, along with recommendations for a stock split, the specifics of which are briefly discussed here.

KSB Stock Split

The Board of Directors of the company at its meeting held on 26th April, 2024, considered the "Approval of sub-division/split of 1 (One) equity share of the Company having nominal/face value of INR 10 each (Rupees Ten only), into 5 (Five) equity shares of INR 2 each (Rupee Two only), subject to approval of the Members of the Company and any other regulatory authorities, if any; and further approved consequential alteration of the Capital Clause i.e., Clause V of the Memorandum of Association of the Company, subject to the approval of the Members of the Company," said KSB in a regulatory filing on Friday.

The rationale behind the stock split is to improve the liquidity of the company's equity shares and to make it affordable to investors, according to the Board of Directors of KSB.

The expected time of the completion of the stock split corporate action is approximately within 3 months from the date of approval of the Members of the Company and subject to completion of the necessary formalities, said KSB in a stock exchange filing.

KSB Results

It declared net profit of Rs 43.1 crore for the fourth quarter that ended on March 31, up 7.75% from Rs 40 crore during the same period the previous year. Revenues for the quarter under review increased by 11.2% to Rs 544.2 crore in Q4FY24 from Rs 489.6 crore in the year-ago quarter. According to KSB's regulatory filing, the company's EBITDA climbed by 7.37% from Rs. 66.50 crore in Q4FY23 to Rs. 71.40 crore in March 2024.

Mr. Prashant Kumar, Vice President of Sales and Marketing, KSB Limited said, "This quarter we have registered a steady growth in sales revenue, which is 11.2% higher than that of the corresponding Q1 2023 quarter. Our recent venture into the light water application of nuclear plant segment highlights our ongoing expansion efforts. Our solar segment has also witnessed significant growth propelling us to a future focused on introducing better and sustainable solutions. The annual dealer conference was recently concluded in Kochi where we hosted 150+ dealers was very successful, where we recognized and rewarded the star performers. We also shared our vision for the year 2024, strengthening and reinforcing our enduring partnership. Giving a flying start and confidence for fiscal 2024, KSB remains optimistic and committed to excellence, sustainability, and creating lasting value for all stakeholders."

KSB Share Price Target

"KSB Ltd is bearish on the Daily charts with strong resistance at 5190. A Daily close below support of 4600 could lead to a target of 3680 in the near term," said AR Ramachandran from Tips2trades.

Disclaimer

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