KSB Shares Soar 9%, Near New Highs on Strong Order Book

Shares of KSB surged 9% to Rs 2,128 in intraday trade on Friday.

In Friday’s intraday trade, KSB shares surged 9% to Rs 2,128 in a weak market. Shares of the company, one of the world’s leading suppliers of pumps, valves and systems, were trading near its all-time high of Rs 2,171 on October 13, 2022, with healthy order books.

In the past 10 trading days, KSB shares rallied 15% after they noted outstanding growth in Q4CY22. Net profit soared 43% year-on-year (YoY) to Rs 54.2 crore from Rs 37.9 crore a year ago. Sales grew 18% YoY to Rs 524.6 crore while the operating profit margin enhanced by 200 basis points (bps) to 15% from 13% in Q4FY21.

The company has sustained growth in profitability over meticulous planning, constant cost saving, and operational synergies.

KSB said it has the highest order intake of Rs 2,045.6 crore in 2022. The company ascended new highs in almost all sections like firefighting, commercial building, nuclear, energy, solar, wastewater, agriculture, and domestic.

KSB produces a range of standard industrial end force, high-pressure multistage pumps, submersible motor pumps and mono-block pumps, and other value-added parts. Its client portfolio comprises BHEL, Patil Engineering, Pooja Engineering, RK Engineering, Thermax, Isgec, L&T, NTPC, and ThyssenKrupp.

The brokerage firm said it continues being positive and recollects a ‘buy’ rating on the stock, with a marked price of Rs 2,390 per share.

KSB traded 6% higher at Rs 2,063.05 at 12:59 pm, while the S&P BSE Sensex fell 1.3%.

The average trading volumes on the stand soared six-fold, as around 2.66 lakh equity shares altered hands on the NSE and BSE.

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