Why is KSB Ltd ?
1
High Management Efficiency with a high ROE of 16.14%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Positive results in Dec 25
- PAT(Latest six months) At Rs 167.59 cr has Grown at 24.32%
- ROCE(HY) Highest at 23.10%
- NET SALES(Q) Highest at Rs 784.00 cr
4
With ROE of 17.2, it has a Very Expensive valuation with a 8.2 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 10.30%, its profits have risen by 17% ; the PEG ratio of the company is 2.8
5
Majority shareholders : Promoters
6
Market Beating performance in long term as well as near term
- Along with generating 10.30% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
7
With its market cap of Rs 13,819 cr, it is the second biggest company in the sector (behind Elgi Equipments)and constitutes 20.08% of the entire sector
- Its annual Sales of Rs 2,695.70 are 13.88% of the industry
How much should you hold?
- Overall Portfolio exposure to KSB should be less than 10%
- Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is KSB for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
KSB
8.68%
0.36
29.00%
Sensex
-2.38%
-0.18
12.70%
Quality key factors
Factor
Value
Sales Growth (5y)
17.41%
EBIT Growth (5y)
20.13%
EBIT to Interest (avg)
64.43
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
1.62
Tax Ratio
24.97%
Dividend Payout Ratio
28.13%
Pledged Shares
0
Institutional Holding
16.46%
ROCE (avg)
24.83%
ROE (avg)
16.14%
Valuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
31
Price to Book Value
8.23
EV to EBIT
42.96
EV to EBITDA
36.25
EV to Capital Employed
9.67
EV to Sales
5.02
PEG Ratio
2.81
Dividend Yield
0.50%
ROCE (Latest)
22.50%
ROE (Latest)
17.25%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
13What is working for the Company
PAT(Latest six months)
At Rs 167.59 cr has Grown at 24.32%
ROCE(HY)
Highest at 23.10%
NET SALES(Q)
Highest at Rs 784.00 cr
PBDIT(Q)
Highest at Rs 129.60 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.53%
PBT LESS OI(Q)
Highest at Rs 117.30 cr.
EPS(Q)
Highest at Rs 4.66
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.10 times
Loading Valuation Snapshot...
Here's what is working for KSB
Net Sales - Quarterly
Highest at Rs 784.00 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 129.60 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 16.53%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 117.30 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 117.30 cr has Grown at 33.60%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 100.09 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 100.09 cr has Grown at 36.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.66
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for KSB
Debtors Turnover Ratio- Half Yearly
Lowest at 3.10 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






