Buy This Small-Cap Multibagger Stock For Target Price Of Rs 2180 As Recommended By ICICI Direct

ICICI Direct, a renowned brokerage firm, has given a buy call to KSB Limited, a leading Pumps and valves manufacturer in India. KSB Ltd (formerly KSB Pumps Ltd), the Indian subsidiary of Klein Schanzlin & Becker (KSB) Germany, is one of the largest manufacturers and sellers of pumps and valves in India.

The brokerage suggests buy the stocks of the company for a target price of Rs 2180 apiece, Considering the estimated target price of the stock by the brokerage, if an investor buys the stocks at the current market price, he/she can expect potential gains of 23% in 12 -15 months.

Business Updates

KSB Ltd manufactures a range of standard industrial end suction and high-pressure multistage pumps, submersible motor pumps and monoblock pumps and other value-added parts. Its client portfolio includes Bhel, Thermax, Isgec, Patil Engineering, RK Engineering, L&T, Pooja Engineering, NTPC and ThyssenKrupp. KSB Limited is a small cap company with a market cap of Rs 6188.31 crore.

Stock Outlook

After falling 0.20%, the stocks of the company today closed at Rs 1774.65 apiece on BSE. On BSE, the stock's recorded 52-week low is Rs 959.65 apiece, whereas, the 52 week high recorded is Rs 1834 apiece.

Returns of Investments

The stocks of the company over the week surged by 3.83%. In the past 1 and 3 months, stocks surged 23.8% and 32.69%, respectively. Over the year, the stocks gave a positive return of 53.28%. In the past 3 and 5 years, the stocks gave multibagger returns of 194.91% and 158.95%, respectively.

 

Q1FY23 Results

KSB reported good Q1FY23 results.

• Revenue for the quarter came in at Rs 448.4 crore, up 48% YoY & 7.7% QoQ.
• Absolute EBIDTA came in at Rs 61.1 crore, up 11.8% QoQ and up 55.7% YoY, at 13.6%.
• PAT came in at Rs 47.4 crore vs. Rs 40.3 crore in Q1CY22 & Rs 28.3 crore in Q2CY21.

Key triggers for future price performance

• Strong traction from nuclear, petrochemical and mechanical seal segments. Focus on new initiatives like digital sales and IT infra.
• Launched the AQUA series of domestic products

 

ICICI Direct suggests buy for a target price of Rs 2180

According to the brokerage firm, "KSB continues to tread on its growth path. The company has a healthy order book and received order of Rs 500 crore from NPCIL. We continue to remain positive and retain our BUY rating on the stock. We value KSB at Rs 2180 i.e. 35x PE (FY24E)."

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. 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 check with certified experts before taking any investment decision.