Kross Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Kross Ltd's management has expressed a confident outlook, driven by strong demand visibility from OEMs and the anticipated benefits of the 'Parivartan' scheme. The company is strategically focused on scaling new product lines, such as tipping jacks and extruded axle beams, while enhancing margins through backward integration and operational efficiencies. Vista's financial outlook reflects a recovering revenue trend, with profitability expected to improve as margins expand, supported by management's proactive measures against input cost inflation. The stable balance sheet and fair valuation align with Vista's expectations of a modest upside. However, the company must navigate challenges such as rising commodity costs and geopolitical tensions that could impact margins. The auto ancillaries sector's shift towards electric vehicles and government incentives presents growth opportunities, particularly for Kross as it aims to increase export contributions. Over the next 12-24 months, key opportunities include the successful scaling of new product lines and improved operational efficiencies, while headwinds may arise from input cost pressures and fluctuating global demand
Why We Like This Stock
- Strong demand visibility from OEMs and the 'Parivartan' scheme supports revenue growth
- Management's focus on new product lines and backward integration is expected to enhance margins
- The auto ancillaries sector's shift towards electric vehicles presents significant growth opportunities
Things To Watch Out For
- Rising input costs and inflation may pressure margins in the near term
- Geopolitical tensions could impact global demand and operational stability
- The company's market share remains low, necessitating aggressive strategies to capture growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 235 | 247 | 206 | 1,099 | 1,350 |
| Profit Before Tax (Cr.) | 93 | 74 | 42 | 203 | 257 |
| PBT Margin | 39.6% | 29.8% | 2057.8% | 18.5% | 19.0% |
| Net Profit (Cr.) | 71 | 57 | 29 | 143 | 180 |
| Earnings Per Share | 4.8 | 3.9 | 2.0 | 9.7 | 12.2 |
Analyst Recommendations
No analyst recommendations available.