This small-cap metal company was trending today
The company is the leader in the domestic foundry-grade pig iron space with a market share of 40-42 per cent.
On January 19, the market traded in the red. The S&P BSE Sensex closed trading at 60858 with a 0.3 per cent loss. Talking about sectoral performance, Oil & Gas and Metal sectors were the Top Gainers today with 0.79 per cent and 0.57 per cent gain, respectively. While Power and IT remained the Top Losers.
Regarding stock-specific action, Kirloskar Ferrous Industries Ltd was among the top gainers today. The stock surged 3 per cent from the previous close of Rs 350 and closed at Rs 360.5.
Kirloskar Ferrous Industries belongs to S&P BSE group ‘A’ and has a market capitalisation of Rs 5000 crore.
The company is a part of the Kirloskar Group and 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, tractors, 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 Q2FY23 results, the revenue stood at Rs 1133 crore, while operating profit was recorded at Rs 138 crore. The Q2FY23 net profit remains at Rs 82 crore.
Regarding the shareholding pattern, 56.68 per cent stake of the company is owned by the promoters, FIIs and DIIs together hold 11.29 per cent, while the rest 32.04 per cent is held by the non-institutional investors.
The stock has a 52-week high and low of Rs 373.6 and Rs 183.75, respectively. Currently, the stock is trading at a PE multiple of 15.5x.