Multibagger Small Cap Engineering Stock Spurts 9% As Net Profit Zooms 321%, Buy?

Small cap engineering sector stock, Kirloskar Brothers Ltd witnessed sharp rally in trade today after its standalone net profit for Q1 FY2023 witnessed a surge of 321% to Rs 33.7 crore as against Rs 8 crore for the corresponding quarter of last year, as per its BSE filing. Kirloskar Brothers stock offered 159% return in last 6-months only. Kirloskar Brothers share also traded its new 52-week high today and last trading price of the stock on BSE is Rs 836.10 per share. Check details below:

Kirloskar Brothers Q1 Results: On sequential basis, Kirloskar Brothers' net profit fell 57.6%. The company in Q4 FY2023 announced its net profit at Rs 79.5 crore. Revenue from operations of the company for the Q1 FY23 declared at Rs 581.2 crore as against Rs 542.4 crore YoY, UP 7.15%.

Revenue from operations of Kirloskar Brothers declined 26.8% on quarter-on-quarter basis. Revenue from operations declared at Rs 794 crore for Q4 of FY 2023.

Kirloskar Brothers Stock Outlook & Return Over Years: Last trading price of Kirloskar Brothers share is Rs 836.10 per share with intraday rally of 9.47%. Kirloskar Brothers stock hit its new 52-week high in trade today. Its 52-week high price on BSE is quoted at Rs 849.95 per share and 52-week low price is Rs 286.85 per share, respectively. It has a market capitalisation of Rs 6639.38 crore. Kirloskar Brothers shares surged 97% in last 3-months only, 138% in last 1-year, soared 94% in last 2-years, and rallied 536% in last 3-years.

Kirloskar Brothers Dividend For FY 2022-23: The company declared 4.50/- per equity share dividend for the FY 2022-23 having a face value of Rs 2/- each and fixed July 25, 2023 as the record date.

Kirloskar Brothers Valuation: Brokerage firm Axis Securities, in its report dated July 12, assigned buy call to Kirloskar Brothers with target price of Rs 850 apiece. According to the analyst, "We initiate coverage on Kirloskar Brothers Pvt. Ltd. (KBL) with a BUY recommendation. Our recommendation is supported by a) Robust improvement in the company's order book, b) Increasing revenue contribution from the Services segment, c) Restructuring of business activities resulting in improving ROE and ROCE (to 19.6% and 25.1% respectively) and operating margins (by 100 bps to 11.7% by FY25). We value the company at 18x on FY25 earnings to arrive at a Target Price of Rs 850/share."

Kirloskar Brothers About: Kirloskar Brothers Limited (KBL) is a leading pump manufacturing company having specialization in engineering and manufacture of fluid management systems. Established in 1888 and incorporated in 1920, KBL is the flagship company of the $ 2.1 billion Kirloskar Group. KBL provides complete fluid management solutions for large infrastructure projects in the areas of water supply, power plants, irrigation, oil & gas and marine & defence.

Disclaimer: The stock has been picked from the brokerage report of Axis Securities. 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.