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Buy This Small-Cap Multibagger Stock For Target Price Of Rs 2180 ICICI Direct

Buy This Small-Cap Multibagger Stock For Target Price Of Rs 2180 ICICI Direct
Written by Zimmy

Buy This Small-Cap Multibagger Stock For Target Price Of Rs 2180 ICICI Direct

 

Business Updates

KSB Ltd manufactures a range of standard industrial suction and high-pressure multistage pump submersible motor pumps, monoblock pumps as well as other parts that add value. The portfolio of clients is comprised of Bhel, Thermax, Isgec, Patil Engineering, RK Engineering, L&T, Pooja Engineering, NTPC, and ThyssenKrupp. KSB Limited is a small capitalization company that has an estimated market capitalization of 6188.31 crores.

Stock Outlook

After dropping 0.20 percent, the stock of the company ended the day at 1774.65 per share on BSE. On BSE the company’s 52-week low is 959.65 per share, while the 52-week peak recorded is 1834 rupees.

The Returns of the investment

The stock of the company during the past week jumped by 3.83 percent. In the last one and three months, the stock price soared 23.8 percent and 32.69 percent, and 32.69%, respectively. Throughout the year, stocks returned a positive profit of 53.28 percent. Over the past three and five years, the stocks have earned multibagger returns of 194.91 percent and 158.95 percent, respectively.

Q1FY23 Results

  • KSB reported good Q1FY23 results.
  • The quarter’s revenue totaled Rs 448.4 crore, an increase of 48% YoY and 7.7 percent QoQ.
  • Absolute EBIDTA totaled Rs 61.1 crore, an increase of 11.8 percent QoQ and increasing 55.7 percent YoY, which is 13.6 percent.
  • PAT stood at Rs 47.4 crore versus. the figure of Rs 40.3 million in Q1CY22 as well as in Q2CY21 it was 28.3 million in Q2CY21.
  • Key triggers that will determine future price performance
  • Strong traction is seen from the nuclear, petrochemical, and mechanical seals. Be focused on new initiatives, such as selling online and IT infra.
  • The company launched AQUA, the AQUA Series of local products
  • ICICI Direct suggests buying for an estimated price of Rs 2180.

The brokerage company says “KSB is continuing to walk in its path of growth. It has a strong order book and also received an order of 500 crores from NPCIL. We are positive and have a”BUY” rating for the stock. We estimate KSB at around 2180 rupees i.e. 35x PE (FY24E).”

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