1. At a Glance
This company makes the boring stuff—pumps, valves, and industrial machinery—and somehow turned it into a ₹15,000 crore empire. Debt-free, high ROCE, growing profits, and government orders in its inbox. But at 60x earnings, are investors pumping the brakes?
2. Introduction with Hook
If companies were dating profiles, KSB would be the dependable guy with a 60-year career in industrial plumbing, no debt, and a government contract tattoo on his arm.
- Market Cap: ₹15,311 Cr
- Revenue (FY24): ₹2,533 Cr
- Net Profit (FY24): ₹247 Cr
- Stock P/E: 60.2
And while most pump manufacturers quietly exist in the shadow of infrastructure plays, KSB is out here bagging L&T and NTPC orders like it’s Black Friday at an EPC mall.
3. Business Model (WTF Do They Even Do?)
KSB Ltd designs, manufactures, and sells pumps and industrial valves. Customers? Literally everyone:
- Power (thermal + nuclear)
- Water & Wastewater treatment
- Oil & Gas (hi ONGC 👋)
- Construction, Agriculture (PM-Kusum scheme!)
Their product range includes high-pressure multistage pumps, end-suction, monoblocks, and solar water pumping systems. Think of them as the cardiovascular system of India’s industrial body—if it moves fluid, KSB’s probably behind it.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROCE % |
|---|---|---|---|---|
| FY21 | 1,497 | 149 | 14% | 21% |
| FY22 | 1,822 | 183 | 14% | 23% |
| FY23 | 2,247 | 209 | 13% | 23% |
| FY24 | 2,533 | 247 | 13% | 24% |
Growth is steady and profitable. The margins have stuck around 13–14%, and ROCE is sitting pretty above 20%. Classic manufacturing excellence.
5. Valuation
Let’s talk numbers before the pump explodes:
- Current P/E: 60.2 (ouch)
- Industry median P/E: ~30–40
- PEG ratio (FY24 EPS ₹14.22, 3Y profit CAGR 18%): ~3.3 (not cheap)
Fair Value Range: ₹600 – ₹740
Based on a 35x–45x P/E on FY26E EPS of ₹17–18.
Valuation has optimism baked in—this isn’t a deep value stock, it’s a future-facing one where every new infra or Kusum scheme order keeps the dream alive.
6. What’s Cooking – News, Triggers, Drama
🔥 L&T + NTPC Order: Major boiler feed pump order from L&T for 4,000 MW plants
🌞 PM-Kusum Scheme: ₹25.3 Cr order for solar water pumps
📈 Order Book Visibility: Pipeline strong; domestic infra tailwinds
💼 AGM FY24: ₹4 dividend declared
📊 Q1FY25 Watchlist: Trading window shut till post-results — expect strong YoY comparison
7. Balance Sheet
| Metric | FY24 (₹ Cr) |
|---|---|
| Equity Capital | 35 |
| Reserves | 1,451 |
| Borrowings | 3 |
| Total Liabilities | 2,348 |
| Cash & Inv | 88 + 1,767 |
Key Points:
- Practically debt-free
- Reserves growing steadily
- Strong liquidity with ~₹1,850 Cr in cash/investments
- Capex under control (CWIP at ₹55 Cr)
8. Cash Flow – Sab Number Game Hai
| Year | CFO | Capex/Investing | FCF | Net Cash Flow |
|---|---|---|---|---|
| FY22 | ₹62 Cr | ₹2 Cr | ₹60 Cr | ₹–30 Cr |
| FY23 | ₹38 Cr | ₹–12 Cr | ₹26 Cr | ₹88 Cr |
| FY24 | ₹142 Cr | ₹5 Cr | ₹137 Cr | ₹–24 Cr |
Key Insight: CFO finally broke out in FY24 after flatlining for a few years. Now let’s hope it’s not a one-quarter wonder.
9. Ratios – Sexy or Stressy?
| Metric | FY24 |
|---|---|
| ROE | 18% |
| ROCE | 24% |
| OPM | 13% |
| Inventory Days | 165 |
| Debtor Days | 94 |
| Working Capital Days | 84 |
| Dividend Payout | 28% |
Verdict: High efficiency, reasonable payouts, though working capital cycle remains a bit bloated. Still, not stressy—more like fluffy.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | OP | PAT | EPS |
|---|---|---|---|---|
| FY22 | ₹1,822 Cr | ₹247 Cr | ₹183 Cr | ₹10.50 |
| FY23 | ₹2,247 Cr | ₹294 Cr | ₹209 Cr | ₹12.00 |
| FY24 | ₹2,533 Cr | ₹338 Cr | ₹247 Cr | ₹14.22 |
Double-digit profit growth + margin consistency = investor confidence. Or at least, passive income in the form of 28% dividend payout.
11. Peer Comparison
| Company | CMP | P/E | ROCE | OPM | Sales (Cr) | Net Profit (Cr) |
|---|---|---|---|---|---|---|
| Cummins India | ₹3,546 | 49 | 36% | 20% | 10,390 | ₹1,999 |
| KSB Ltd | ₹880 | 60.2 | 24% | 13% | 2,533 | ₹247 |
| Elgi Equipments | ₹551 | 49.8 | 21.8% | 14.9% | 3,510 | ₹350 |
| Kirloskar Brothers | ₹2,193 | 42.3 | 27.6% | 13.5% | 4,492 | ₹412 |
Key Point: Highest P/E in the sector with lower topline scale. Premium pricing likely due to debt-free status + government pipeline + long-term contracts.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 69.80% |
| FIIs | 4.86% |
| DIIs | 11.07% |
| Public | 14.28% |
Other Stuff:
- ~56k shareholders
- ₹4 dividend in FY24
- Active in solar pump, nuclear segment, and now, supercritical thermal
13. EduInvesting Verdictâ„¢
KSB Ltd is that rare manufacturing beast that makes boring products but delivers sexy numbers. Solid margins, consistent cash flows, and government capex as its personal sugar daddy.
But here’s the rub: at 60x earnings, the market expects flawless execution, continuous orders, and zero hiccups. One delay in NTPC commissioning or slowdown in solar pump schemes, and the valuation air gets sucked out faster than a pressure valve.
Final Word: If India’s infra, energy, and water dreams stay alive, KSB could be riding the wave. If not… well, pumps can go out of pressure too.
Metadata
– Written by EduBot | 14 July 2025
– Tags: Pumps, Infra, Energy, Debt-Free, Manufacturing, Industrial, Capex-Heavy Stocks, PSU Suppliers, KSB
