This Kirloskar Group company surges 9.58% on August 12

The company is the leader in the domestic foundry grade pig iron space with a market share of 40-42%.

On August 12, the market is trading in the red. At 11:20 am, S&P BSE Sensex is trading at 59369 with 0.06% gain. Oil & Gas and Metal sectors are the top gainers today. While Healthcare and IT remain the top gainers.

About stock-specific action, Kirloskar Ferrous Industries Ltd is among the top gainers today. At 11:20 am, the stock has surged 9.58% from the previous close of Rs 228.6 and is currently trading at Rs 250.5.

Kirloskar Ferrous Industries belongs to S&P BSE group ‘A’ and has a market capitalization of Rs 3376 crore.

The company is a part of the Kirloskar Group and is involved in the business of manufacturing pig iron and ferrous casting, which are used to make cylinder blocks, cylinder heads, and transmission parts and various types of housings for the automobile, tractor, and diesel engine industries.

About revenue breakdown by end-application, 32% comes from General engineering, 31% from Auto, 21% from pumps, 9% from pipes, and the remaining 7% is contributed by steel applications.

The company is the leader in the domestic foundry grade pig iron space with a market share of 40-42%. It has a 19% market share in the domestic castings business.

FY22 was very good for the company. The company’s consolidated revenue increased by 77.37% to Rs 3615 crore from Rs 2038.08 in FY21. The net profit jumped by 34.42% from Rs 302.11 crore to Rs 406.1 crore. About Q1 FY23 results, the consolidated revenue stood at Rs 1493.82 crore, while operating profit was recorded at Rs 174 crore. The Q1 FY23 net profit remains at Rs 102.8 crore.

Regarding the shareholding pattern, 58.95% stake of the company is owned by the promoters, FIIs and DIIs together hold 9.56%, while the rest 31.49% is held by the non-institutional investors.

The stock has a 52-week high and low of Rs 295 and Rs 183, respectively. Currently, the stock is trading at a PE multiple of 9.14x.