Kirloskar Pneumatic
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Kirloskar Pneumatic's management remains optimistic about achieving 20% revenue growth and maintaining EBITDA margins between 18-20% for FY27, driven by strong demand in air compression and refrigeration segments. The company is strategically focusing on domestic opportunities in biogas and industrial refrigeration, while also investing in new product lines and enhancing manufacturing capabilities. Despite near-term challenges, including delays in large package orders due to geopolitical tensions, the robust order book of over Rs. 2,000 Cr and a commitment to innovation position Kirloskar favorably for long-term growth. Vista's financial outlook reflects a stable balance sheet and fair valuation, with expected upside supported by the company's strategic initiatives and market positioning. The industrial equipment sector's growth, driven by energy security and improving pricing power, further bolsters this outlook. Over the next 12-24 months, key opportunities include the successful commercialization of new products and expansion into high-margin aftermarket services, while watchpoints include execution risks related to international order closures and supply chain resilience
Why We Like This Stock
- Management's confidence in achieving 20% revenue growth and maintaining healthy EBITDA margins reflects strong demand in key segments
- A robust order book and strategic capital expenditure under the PLI scheme are expected to drive future growth and market expansion
- The focus on innovation and new product launches positions Kirloskar to capitalize on emerging market opportunities
Things To Watch Out For
- Geopolitical tensions have caused delays in large package order conversions, potentially impacting short-term revenue
- Execution risks remain regarding the timing of international order closures and the recovery of the Precision Engineering division
- Pressure on margins may persist due to rising input costs and the need for continuous supply-chain resilience
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,323 | 1,629 | 1,759 | 1,750 | 1,989 |
| Profit Before Tax (Cr.) | 185 | 284 | 356 | 369 | 410 |
| PBT Margin | 14.0% | 17.4% | 2023.9% | 21.1% | 20.6% |
| Net Profit (Cr.) | 138 | 213 | 269 | 280 | 311 |
| Earnings Per Share | 21.2 | 32.8 | 41.3 | 43.0 | 47.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Prabhudas Liladhar | ► Accumulate | 1,715 | 23-Jul-2026 |
Company Overview
Show Company Profile
Kirloskar Pneumatic Company Limited engages in the design, manufacture, supply, and sale of industrial air compressors, gas compressors, and pneumatic tools in India and internationally. The company offers reciprocating and screw open-type refrigeration compressors, industrial refrigeration systems, marine refrigeration and air condition systems, and vapour absorption chillers for use in refinery and petrochemicals, chemicals, fertilizers, marine, and process cooling and air conditioning applications; reciprocating air and gas, and screw and centrifugal air compressors; process gas systems, such as CNG compressor packages, compressed biogas packages, and gas compression systems; and transmission products, including rail traction gears, marine gearboxes, and wind turbine and hydro turbine gearboxes. It also provides logistic services using rail network. The company serves oil and gas, power, steel and aluminium, automotive, engineering, railways, chemicals and fertilizers, sugar, paper, pharmaceutical, textile, food and beverage, marine and fisheries, construction and other industrial sectors. Kirloskar Pneumatic Company Limited was founded in 1958 and is based in Pune, India.