Goal: ₹2,100
CMP: ₹1,747.60
Kirloskar Brothers Ltd (KBL) has posted a 19 per cent y-o-y income development in the course of the quarter, with a 23 per cent enhance within the abroad enterprise. Development within the abroad phase was pushed by robust efficiency in SPP UK and Dutch subsidiaries, whereas the corporate has noticed traction in SPP US post-elections.
KBL additionally maintains a robust order e-book of ₹3,094 crore (vs ₹3,057 crore in Q2FY25), indicating strong income visibility sooner or later.
KBL has been strategically specializing in rising the share of value-added merchandise whereas considerably decreasing its publicity to low-margin and lumpy EPC orders. Moreover, it has been investing in technological upgrades to reinforce operational efficiencies and enhance the worth of its choices. These efforts are evidently translating into the corporate’s robust efficiency, because it has managed to develop margins considerably over the past two quarters. The administration expressed confidence in sustaining the margin enchancment going ahead.
With sustained demand from key finish markets and a sturdy order e-book, KBL stays on monitor to attain double digit income development in FY25. The present order e-book gives robust income visibility, and order consumption is predicted to stay robust going ahead. Moreover, the give attention to value optimisation and an improved product combine ought to assist continued margin enlargement.
