Goal: ₹2,100
CMP: ₹1,747.60
Kirloskar Brothers Ltd (KBL) has posted a 19 per cent y-o-y income progress throughout the quarter, with a 23 per cent improve within the abroad enterprise. Development within the abroad section 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 powerful 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 boost operational efficiencies and improve the worth of its choices. These efforts are evidently translating into the corporate’s robust efficiency, because it has managed to broaden 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 observe to realize double digit income progress in FY25. The present order e book offers robust income visibility, and order consumption is anticipated to stay robust going ahead. Moreover, the concentrate on price optimisation and an improved product combine ought to assist continued margin growth.
