Water Pump Manufacturing Debt-free Company Secures Rs 14 Crore Order from Tripura Renewable Energy Agency for 962 solar pumps under the PM-Kusum Scheme
The stock price has given 668 per cent returns in the last 5 years.
KSB Limited announced on April 4, 2025, that it has been awarded a letter under the PM-Kusum Scheme, Component B, by the Tripura Renewable Energy Development Agency. The order, valued at approximately INR 14 Crores, is for 962 solar water pumping systems. The company informed the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) of this development, highlighting that the sales and supply of these systems are projected to commence from the second quarter of FY 2025. The Tripura Renewable Energy Development Agency is the entity awarding the contract.
The key terms and conditions specify that delivery is set to begin from the second quarter of FY 2025, with payment terms requiring settlement after installation. This contract is classified as a domestic order for the design, manufacture, supply, transport, installation, testing, and commissioning of 962 off-grid Solar Photovoltaic Water Pumping Systems (SPWPS). KSB Limited clarified that this order, with an approximate value of Rs 14 Crores, is a domestic transaction, and there is no involvement of the company’s promoters or related parties.
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KSB Ltd manufactures a range of standard Industrial end suction and high-pressure multistage pumps, submersible motor pumps and monoblock pumps and other value-added parts, for the agricultural, waste-water treatment, energy (nuclear and conventional power), and oil and gas sectors, as well as other industries. KSB Limited is a prominent player in the pump and valve industry, serving diverse sectors such as energy, water, wastewater, construction, and general industries. Founded in 1960 and headquartered in Pune, Maharashtra, the company has established itself as a key player with a robust presence in domestic and international markets.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 726.40 crore, reflecting a YoY growth of 20.54 per cent compared to Rs 602.60 crore in December 2023. The operating profit stood at Rs 98.40 crore, marking a 21.63 per cent increase from Rs 80.90 crore in the same quarter last year. The profit after tax (PAT) increased by 33.15 per cent to Rs 73.10 crore from Rs 54.90 crore in December 2023.
In FY24, the company posted a revenue of Rs 2,533.10 crore, registering a 12.72 per cent growth compared to Rs 2,247.24 crore in FY23. The net profit for the year stood at Rs 247.50 crore, up 18.57 per cent from Rs 208.73 crore in the previous financial year.
With a PE ratio of 23.9, the company trades at a discount compared to the industry PE of 33.8. The company has ROCE of 23.9 per cent and ROE of 17.76 per cent. The stock price has given 668 per cent returns in the last 5 years.
The current market capitalisation of the company stands at Rs 11,770.26 crore with a current price of Rs 676.25.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: This is not investment advice. Please consult your financial advisor before making any investment decisions.