Kirloskar Pneumatic
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Kirloskar Pneumatic's recent management commentary highlights a constructive long-term growth outlook, driven by product-led expansion in Air Compression and Refrigeration. The company is strategically focusing on margin protection through selective order intake and backward integration, which is crucial given the expected margin pressures in the broader industrial equipment sector. Vista's financial outlook anticipates moderate revenue growth, with a target price reflecting a 7.9% expected upside, supported by strong domestic demand and successful product innovation. However, geopolitical disruptions and execution risks remain watchpoints, particularly in the Middle East market. The industry context is favorable, characterized by improving pricing power and robust demand, although slight margin declines are anticipated. Over the next 12-24 months, key opportunities include scaling new product lines and expanding into complex gas applications, while headwinds may arise from potential supply chain disruptions and economic uncertainties. Overall, Kirloskar Pneumatic is well-positioned to leverage its strong order book and strategic investments, but must navigate execution challenges and geopolitical risks to realize its growth potential
Why We Like This Stock
- Strong domestic demand and successful product innovation are driving revenue growth
- Strategic focus on margin protection through selective order intake and backward integration enhances competitive positioning
- Investment in new product lines and expansion into complex gas applications present significant growth opportunities
Things To Watch Out For
- Geopolitical disruptions in the Middle East may delay order conversions and impact revenue
- Expected margin pressures could challenge profitability in the near term
- Economic uncertainties and potential supply chain disruptions pose risks to operational execution
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,323 | 1,629 | 1,759 | 1,737 | 1,883 |
| Profit Before Tax (Cr.) | 185 | 284 | 356 | 346 | 373 |
| PBT Margin | 14.0% | 17.4% | 20.2% | 19.9% | 19.8% |
| Net Profit (Cr.) | 138 | 213 | 269 | 262 | 284 |
| Earnings Per Share | 21.2 | 32.8 | 41.3 | 40.4 | 43.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Prabhudas Liladhar | ▲ Buy | 861 | 21-Sep-2026 |
Company Overview
Show Company Profile
Kirloskar Pneumatic Company Limited, together with its subsdiary, engages manufacture and sale of compression and transmission products in India. It operates through Compression Systems and Other non-reportable segments. The company offers reciprocating refrigeration compressors, screw refrigeration compressors and packages, industrial refrigeration packages, marine HVAC and R, steam driven vapour absorption chillers, hot water driven vapour absorption chillers, and customised vapour absorption chiller solutions; and centrifugal air, reciprocating horizontal balanced opposed air, reciprocating gas, vertical reciprocating, and PET compressors, as well as compressor for railway brake systems. It also provides process gas systems, including reciprocating gas compressor packages, screw compressor packages, online CNG compressor packages, CNG hydraulic booster packages, compressed biogas applications, diaphragm compressors, hydrogen refuelling stations; helical and bevel, high speed, planetary, and wind turbine gearboxes, as well as gears and loco transmissions; and forging and fabrication products. The company serves pharmaceuticals and chemicals, automotive engineering, oil and gas, food and beverage processing, steel and aluminium, general engineering, power generation, marine, sugar, textile, cement, paper, dairy, meat, fisheries, fruits and vegetables, breweries sectors. Kirloskar Pneumatic Company Limited was founded in 1888 and is headquartered in Pune, India.