Kirloskar Industries
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Kirloskar Industries Limited (KIL) is strategically refocusing on its core real estate business and optimizing its investment portfolio, following the divestment of its windmill operations. Management's commentary highlights optimism regarding the domestic ferrous sector, which is expected to drive long-term growth. This aligns with Vista's forecast of stable revenue growth and margins, supported by improving pricing power in the forgings and castings industry. The company's disciplined capital allocation and focus on high-quality real estate projects, such as the successful 'One Avante' development, position it well to capitalize on infrastructure growth. However, external risks, including raw material cost volatility and economic fluctuations, remain pertinent. The current macro environment in India shows mixed signals, with strong government capex and vehicle sales countered by inflationary pressures. Over the next 12-24 months, KIL's key opportunities lie in leveraging its land assets and the growth of the construction sector, while watchpoints include managing raw material costs and maintaining operational excellence amidst market challenges
Why We Like This Stock
- Strategic divestment of non-core operations enhances focus on real estate and investment management
- Optimism in the domestic ferrous sector supports long-term revenue growth potential
- Successful project completions, like 'One Avante', demonstrate operational excellence and market responsiveness
Things To Watch Out For
- Volatility in raw material costs could pressure profit margins
- Economic fluctuations may impact demand in key sectors
- Complexities in managing a diverse investment portfolio pose operational risks
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,396 | 6,629 | 6,939 | 7,101 | 7,373 |
| Profit Before Tax (Cr.) | 617 | 439 | 529 | 525 | 550 |
| PBT Margin | 9.6% | 6.6% | 7.6% | 7.4% | 7.5% |
| Net Profit (Cr.) | 424 | 324 | 392 | 392 | 246 |
| Earnings Per Share | 251.0 | 157.5 | 187.6 | 224.0 | 234.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Kirloskar Industries Limited engages in the manufacturing and sale of iron castings in India. It operates through Investments (Securities & Properties); Real Estate; Iron Casting; Tube; and Steel segments. The company also manufactures seamless tubes, cylinder tubes, components, and engineering steels. In addition, it is involved in real estate development and leasing; owns real estate properties that include lands and buildings, apartments, and offices; and invests in properties and securities. The company was formerly known as Kirloskar Oil Engines Ltd and changed its name to Kirloskar Industries Limited in March 2010. Kirloskar Industries Limited was founded in 1888 and is headquartered in Pune, India.