Kirloskar Pneumatic shares soar 18% as post-earnings rally extends to 2nd day

During the erstwhile trading session, the institution soared by 15% aft it released its results during marketplace hours, surpassing analysts' expectations. This two-day rally has pushed the stock's one-year summation to 74% and its five-year summation to an awesome 472%.

In the March quarter, the institution reported a gross of ₹490 crore, marking 36% YoY growth. Its EBIDTA during the 4th jumped to ₹89 crore, a 74.50% betterment compared to ₹51 crore successful Q4FY23.

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On the bottommost line, the institution recorded a PAT of ₹60 crore, up from ₹32 crore successful Q4FY23, representing an 88% year-on-year increase. 

For the afloat FY24, the institution reported gross from operations of ₹1,323 crore, a 7% maturation from ₹1,239 crore successful FY23. The PAT for FY24 stood astatine ₹133 crore, up from ₹108 crore successful FY23, indicating a 23% year-on-year increase. EPS for FY24 was reported astatine ₹20.60 per share, compared to ₹16.82 per stock successful FY23.

Additionally, the institution announced a last dividend of 200% astatine ₹4 per share, summation to the interim dividend of 125%, resulting successful an wide dividend of ₹6.50 per stock (325%).

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Strong commencement to FY25

Kirloskar Pneumatic Company is simply a halfway entity wrong the Kirloskar Group. It is simply a diversified organisation offering a wide array of products, including air, refrigeration, and state compressors and systems, vapor absorption chillers, and concern gearboxes. 

Serving assorted industries specified arsenic steel, cement, acold chains, nutrient and beverages, pharmaceuticals, railways, defence, and marine, KPCL holds a important beingness successful the lipid & state sector, peculiarly successful the CNG concern successful India.

As of March 31, 2024, the company's bid publication stood astatine ₹1,475 crore, marking a notable summation of ₹325 crore compared to the aforesaid play past year. 

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This 28% surge successful orders astatine the opening of the fiscal twelvemonth highlights robust marketplace request and reaffirms the company's beardown positioning astatine the onset of FY25, the institution said successful its net report. 

The compression concern remains the superior gross operator for the company, constituting astir 93% of the company's full gross and serving arsenic the sole reporting segment.

Strong positioning 

Analysts item the company's imaginable to payment from accrued investments successful the nation's CNG infrastructure. Aligned with the Government of India's nonsubjective to elevate earthy gas's publication to the vigor premix from 6.3% to 15% by 2030, the PNGRB has acceptable an ambitious people of 17,700 CNG stations by 2030, a important emergence from the existent 5,665 stations.

With lipid selling companies (OMCs) expected to spearhead the operation of CGD infrastructure, the institution stands successful a beardown presumption to bolster its marketplace beingness successful the expanding CNG compressor market, analysts suggest.

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To capitalise connected emerging opportunities successful hydrogen compression, the institution has partnered with PDC Machines LLC, USA, to supply diaphragm compressor packages tailored for divers industries and applications.

Disclaimer: We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 26 Apr 2024, 01:42 PM IST