Axis Securities Places Buy On Midcap Kirloskar Group Stock, Jumps 117.78% In 6 Months, Rallies 3.73%

Axis Securities has placed a Buy on Kirloskar Brothers Ltd. (KBL) with a target price of Rs 850 apiece, implying a potential upside of 20% from its current level. KBL is a midcap Industrials sector company of the Kirloskar Group. It has a market capitalisation of Rs 5,620.56 Crore.

Kirloskar Brothers Ltd. (KBL) is India's one of the oldest pump manufacturing company with an extensive experience of around 100 years in manufacturing centrifugal pumps. The company's products are sold across 6 continents and over 100 countries through its 6 domestic and 5 international state-of-the-art manufacturing plants, according to Axis Securities.

Valuation and Recommendations

Axis Securities said, "We initiate coverage on Kirloskar Brothers Pvt. Ltd. (KBL) with a BUY recommendation. Our recommendation is supported by a) Robust improvement in the company's order book, b) Increasing revenue contribution from the Services segment, c) Restructuring of business activities resulting in improving ROE and ROCE (to 19.6% and 25.1% respectively) and operating margins (by 100 bps to 11.7% by FY25)."

It added, "We value the company at 18x on FY25 earnings to arrive at a Target Price of Rs 850/share, implying an upside of 25% from the current levels."

Stock Outlook

The stock last traded at Rs 707.80 apiece, up 3.73% from its previous close of Rs 682.35 apiece on BSE. It hit an intraday high of Rs 728.70 apiece and an intraday low of Rs 690.50 apiece. The stock's 52-week low is Rs 286.85 apiece and its 52-week high is Rs 728.70 apiece.

The stock stock jumped 11.61% in the past 1 week, and 21.40% in the past 1 month. It gave 60.74% in the past 3 months and 117.78% in the past 6 months, respectively. It gave 119.37% positive return in 1 year, 543.45% in 3 years and 163.12% in 5 years.

Disclaimer

The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.