These Kirloskar Group stocks rallied despite weak market sentiments!

Shares of KIOCL Ltd surged more than 5 per cent, whereas Kirloskar Pneumatic Co Ltd and Kirloskar Ferrous Industries Ltd stocks jumped around 3 per cent each

On January 25, the market traded in the red. The S&P BSE Sensex closed trading at 60205 with a 1.27 per cent loss. Regarding sectoral performance, Banks and Metal sectors were the Top Gainers today, while Power and Auto remain the Top Losers. 

About stock-specific action, Kirloskar group stocks were trending today. Shares of KIOCL Ltd surged more than 5 per cent, whereas Kirloskar Pneumatic Co Ltd and Kirloskar Ferrous Industries Ltd stocks jumped around 3 per cent each.

Among these three stocks, Kirloskar Ferrous Industries Ltd has risen more than 80 per cent over the last 6 months. Kirloskar Ferrous Industries belongs to S&P BSE group ‘A’ and has a market capitalisation of Rs 5072 crore. 

 Kirloskar Ferrous Industries is involved in the business of manufacturing pig iron and ferrous casting, which are used to make cylinder blocks, cylinder heads, transmission parts and various types of housings for the automobile, tractor, and diesel engine industries. 

About revenue breakdown by end-application, 32 per cent comes from General engineering, 31 per cent from Auto, 21 per cent from pumps, 9 per cent from pipes, and the remaining 7 per cent is contributed by steel applications. 

The company is the leader in the domestic foundry-grade pig iron space with a market share of 40-42 per cent. It has a 19 per cent market share in the domestic castings business. 

FY22 was very good for the company. The company’s consolidated revenue increased by 77.37 per cent to Rs 3615 crore from Rs 2038.08 in FY21. The net profit jumped by 34.42 per cent from Rs 302.11 crore to Rs 406.1 crore. About Q2 FY23 results, the consolidated revenue stood at Rs 1758 crore, while operating profit was recorded at Rs 200 crore. The Q2 FY23 net profit came in at Rs 111 crore. 

Regarding the shareholding pattern, 58.95 per cent stake of the company is owned by the promoters, FIIs and DIIs together hold 9.56 per cent, while the rest 31.49 per cent is held by the non-institutional investors. 

The stock has a 52-week high and low of Rs 373.6 and Rs 183, respectively. Currently, the stock is trading at a PE multiple of 15x.