This Kirloskar Group stock was trending today

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

On February 3, the market traded in the green. The S&P BSE Sensex closed trading at 60841 with a 1.5% gain on the day. Talking about sectoral performance, Banks and Consumer durables sectors were the top gainers today, while Utilities and Healthcare remained the top losers. Regarding stock-specific action, Kirloskar Ferrous Industries Ltd was among the top gainers today.

Stock Movement of  Kirloskar Ferrous Industries

The shares of Kirloskar Ferrous Industries closed trading at Rs 396, up by 6.3 % from its previous close of Rs 372.45. The stock opened at Rs 383.95 and made a fresh 52-week high of Rs 397. The company belongs to S&P BSE group ‘A’ and has a market capitalisation of Rs 5485 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, transmission parts and various types of housings for the automobile, tractors, 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.

Company Performance

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. For the September quarter, the revenue stood at Rs 1133 crore, while operating profit was recorded at Rs 138 crore. The Q2FY23 net profit came in at Rs 82 crore. 

Regarding the shareholding pattern, 56.66% stake of the company is owned by the promoters, FIIs and DIIs together hold 11.78%, while the rest 31.55% is held by the non-institutional investors.  

The stock has a 52-week high and low of Rs 397 and Rs 183.7, respectively. Currently, the stock is trading at a PE multiple of 16.55x.