25th July Record Date For 1:5 Stock Split: Target Rs 5,000 - 7,500, Stop-loss Rs. 3,520; Buying Range?

KSB Limited, a division of KSB SE & Co KGaA., one of the top providers of pumps, valves, and systems worldwide, was established in India in 1960. Customers in the oil, power, construction services, process engineering, water treatment, and water transportation industries are catered to by the organisation. With its own production facilities, service operations, and sales and marketing firms, the KSB group is now present on every continent. Over two billion euros in consolidated sales revenue are produced annually by over 15,000 employees of the company.

KSB Stock Split

"The Company has fixed Thursday, 25th July, 2024 as the "Record date" for the purpose of sub-division (split) of its equity shares in the ratio of 1:5, i.e. 1 Equity Share of nominal value of INR 10 (Rupees Ten only) each fully paid up into 5 Equity Shares of INR 2 (Rupees two only) each fully paid up, ranking pari-passu in all respects, which was approved by the shareholders at the Annual General Meeting of the Company held on 27th June, 2024," said KSB in a regulatory filing.

Purpose of Stock Split

"With a view to encourage wider participation of small investors and to enhance the liquidity of the Equity Shares at the Stock Market, the Board of Directors recommends this sub-division. Sub-division will make the equity shares of the Company more affordable and is expected to encourage participation of investors at large and therefore it is in the best interest of the investors and the Company," said KSB in a stock exchange filing.

Important Note For Investors

"There will not be any change in the amount of authorised, subscribed, issued and paid-up share capital of the Company on account of sub-division of the equity shares. Further, such sub-division shall not be construed as reduction in share capital of the Company, in accordance with the applicable provisions of the Companies Act, 2013 and SEBI Regulations," informed KSB to stock exchanges.

KSB Share Price Target

"KSB Ltd is currently available at a higher valuation, as indicated by its Return on Capital Employed (ROCE), PE ratio, and current price of Rs. 4,925.00. However, the technical chart suggests a potential dip is on the horizon, making it a good time to consider entering this stock at the buying range of Rs. 4,150-4,200. For those looking to hold it for 5- 8 months, I recommend setting a price target between Rs. 5,000 and 7,500, while adhering to the stop loss of Rs. 3,520," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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