Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by capacity expansion and robust demand in specialized products.
Basis of our Recommendation
KSH International is strategically positioned to leverage the growing demand for specialized winding wires, particularly in the electrification and transmission sectors. The company is expanding its capacity significantly, targeting 60,000 MT by FY27, which is expected to enhance operating leverage and revenue potential. While there are risks related to execution and working capital management, the long-term outlook remains strong due to anticipated demand growth in high-value products.
Why We Like This Stock
- Significant capacity expansion planned to 60,000 MT by FY27
- Projected doubling of domestic CTC demand by FY27, with further growth expected
- Focus on high-value specialized products like CTC and PEEK wires to enhance margins
Things To Watch Out For
- Execution risks associated with ramping up new capacities
- Elevated working capital cycle remains a concern
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,383 | 1,928 | 3,107 | 3,973 | 4,883 |
| Profit Before Tax (Cr.) | 50 | 90 | 148 | 213 | 261 |
| PBT Margin | 3.6% | 4.7% | 4.8% | 5.4% | 5.3% |
| Net Profit (Cr.) | 36 | 67 | 113 | 162 | 199 |
| EPS | 5.3 | 9.9 | 16.7 | 23.9 | 29.4 |
Company Overview
Show Company Profile
KSH International Limited manufactures magnet winding wires in India. The company offers round enamelled, paper insulted rectangular, rectangular enamelled, and wrapped rectangular copper/aluminum magnet winding wires, as well as transposed conductors and bunched paper insulated copper magnet winding wires under the brand name of KSH. Its products are components of transformers, motors, alternators, and generators for use in industries, such as power, renewables, industrials, railways, automotives, home appliances, and refrigeration and air conditioning. The company was incorporated in 1979 and is headquartered in Pune, India.