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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500249 | NSE: KSB

KSB Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:36 pm

Market Cap 13,916 Cr.
Current Price 798
High / Low1,060/634
Stock P/E60.7
Book Value 77.6
Dividend Yield0.44 %
ROCE23.3 %
ROE17.1 %
Face Value 2.00
PEG Ratio3.87

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for KSB Ltd

Competitors of KSB Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hawa Engineers Ltd 80.3 Cr. 228338/11128.6 55.90.00 %14.7 %10.4 % 10.0
Shakti Pumps (India) Ltd 9,808 Cr. 4,8995,151/92929.8 4700.01 %31.4 %24.2 % 10.0
Latteys Industries Ltd 206 Cr. 35.848.6/13.0133 3.400.00 %11.8 %9.00 % 2.00
Bright Solar Ltd 11.6 Cr. 4.6512.5/4.65 11.80.00 %10.9 %11.5 % 10.0
Kirloskar Brothers Ltd 17,474 Cr. 2,1932,685/83744.4 2330.27 %27.3 %21.7 % 2.00
Industry Average10,351.00 Cr1,359.7459.30141.950.12%19.90%15.65%6.00

All Competitor Stocks of KSB Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales303368445418448431525490591564603544646
Expenses264316388363387377448432506493522483555
Operating Profit39525655615477578570816191
OPM %13%14%13%13%14%13%15%12%14%12%13%11%14%
Other Income1011101115121110111191313
Interest1121112112211
Depreciation11111110111212121212141313
Profit before tax37515455645373558367756090
Tax %27%23%27%26%26%27%24%26%24%25%27%25%24%
Net Profit27393940473956416350554568
EPS in Rs1.562.242.262.322.722.243.212.353.612.883.162.563.91

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Sales7147318028198269461,0931,2941,2081,4971,8222,247
Expenses6216297017137208389651,1421,0391,2871,5751,954
Operating Profit93102101106106108128152169210247294
OPM %13%14%13%13%13%11%12%12%14%14%14%13%
Other Income141223242935244033405042
Interest532234453565
Depreciation242728282931404642444550
Profit before tax798694100103108109140157201245280
Tax %30%33%34%36%33%34%34%28%40%26%25%26%
Net Profit6467686969717210194149183209
EPS in Rs18.2719.1819.6619.7519.6920.3720.5728.9426.9442.9252.5059.96
Dividend Payout %30%29%28%28%28%29%29%28%32%29%29%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:16%
3 Years:23%
TTM:11%
Compounded Profit Growth
10 Years:12%
5 Years:24%
3 Years:30%
TTM:9%
Stock Price CAGR
10 Years:21%
5 Years:43%
3 Years:47%
1 Year:21%
Return on Equity
10 Years:13%
5 Years:15%
3 Years:17%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital35353535353535353535353535
Reserves4334775225686256767237948569761,1081,2671,316
Borrowings1732417134360623333
Other Liabilities269284332347321354449547588596679761879
Total Liabilities7547999149519881,0771,2501,4361,5401,6091,8252,0662,232
Fixed Assets158181191194219308321307318311350419424
CWIP27810141644342539253237
Investments43485051545860646670748081
Other Assets5265616636916997078651,0301,1301,1901,3751,5351,691
Total Assets7547999149519881,0771,2501,4361,5401,6091,8252,0662,232

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity +12610511258-25772021716238142
Cash from Investing Activity +-39-11-33-6139-86-152-1012-125
Cash from Financing Activity +-68-39-48-23-212-4-32-95-51-59
Net Cash Flow205631-26-7-64639-30-2588

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow76.0099.0077.00105.0099.0095.0085.0092.00107.00207.00244.00291.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days756382807298978481688180
Inventory Days197194193171200193196170212195207184
Days Payable11413814714514213914112715512911698
Cash Conversion Cycle158120127106130153152127138134172165
Working Capital Days634156406088855444547677
ROCE %17%18%17%17%17%16%15%16%18%21%23%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.69%66.69%66.69%66.69%66.69%66.69%66.69%66.69%66.69%66.69%66.69%69.80%
FIIs2.82%2.90%2.45%2.91%3.17%3.23%3.48%3.43%3.51%4.50%5.22%5.38%
DIIs11.63%11.12%10.97%10.93%10.77%10.85%10.41%10.30%10.88%10.13%10.03%10.07%
Public18.86%19.29%19.89%19.47%19.36%19.21%19.42%19.59%18.92%18.69%18.07%14.74%
No. of Shareholders22,03820,34421,34921,42825,71527,19432,79935,74439,87345,74747,45555,288

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India ELSS Tax Saver Fund715,0001.84260.85411,1182024-11-2073.92%
Tata Small Cap Fund411,1182.45149.99411,1182024-11-200%
Sundaram Small Cap Fund248,5702.9690.68411,1182024-11-20-39.54%
Sundaram Multi Cap Fund189,7832.8969.24411,1182024-11-20-53.84%
Motilal Oswal ELSS Tax Saver Fund169,0472.0461.67411,1182024-11-20-58.88%
Tata Infrastructure Fund - Regular Plan112,0002.440.86411,1182024-11-20-72.76%
WhiteOak Capital Flexi Cap Fund89,1381.0932.52411,1182024-11-20-78.32%
Bank of India Small Cap Fund65,1292.6123.76411,1182024-11-20-84.16%
ITI Small Cap Fund62,2931.0922.73411,1182024-11-20-84.85%
Sundaram Infrastructure Advantage Fund57,0002.4620.8411,1182024-11-20-86.14%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Dec 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)59.9752.5042.9226.9428.94
Diluted EPS (Rs.)59.9752.5042.9226.9428.94
Cash EPS (Rs.)71.5363.2653.5837.4240.52
Book Value[Excl.RevalReserv]/Share (Rs.)374.02328.41290.40255.87238.07
Book Value[Incl.RevalReserv]/Share (Rs.)374.02328.41290.40255.87238.07
Revenue From Operations / Share (Rs.)645.61523.43430.16347.08371.73
PBDIT / Share (Rs.)93.6382.9869.8656.5449.81
PBIT / Share (Rs.)79.3669.9757.3544.5436.67
PBT / Share (Rs.)77.8468.2255.9043.5738.81
Net Profit / Share (Rs.)57.2650.2541.0725.4227.38
NP After MI And SOA / Share (Rs.)59.9752.5042.9226.9428.94
PBDIT Margin (%)14.5015.8516.2416.2913.39
PBIT Margin (%)12.2913.3613.3312.839.86
PBT Margin (%)12.0513.0312.9912.5510.43
Net Profit Margin (%)8.869.609.547.327.36
NP After MI And SOA Margin (%)9.2810.029.977.767.78
Return on Networth / Equity (%)16.0315.9814.7710.5312.15
Return on Capital Employeed (%)20.4720.4718.7516.5414.65
Return On Assets (%)10.1010.019.286.087.01
Total Debt / Equity (X)0.000.000.000.060.07
Asset Turnover Ratio (%)1.161.060.960.820.98
Current Ratio (X)2.052.012.061.811.75
Quick Ratio (X)1.151.121.281.211.17
Inventory Turnover Ratio (X)1.781.821.841.611.92
Dividend Payout Ratio (NP) (%)25.0123.8019.8029.6920.73
Dividend Payout Ratio (CP) (%)20.2019.0815.3320.5414.26
Earning Retention Ratio (%)74.9976.2080.2070.3179.27
Cash Earning Retention Ratio (%)79.8080.9284.6779.4685.74
Interest Coverage Ratio (X)61.6147.1548.2557.9932.64
Interest Coverage Ratio (Post Tax) (X)38.6829.5529.3727.0716.55
Enterprise Value (Cr.)11783.456480.953876.031908.032119.50
EV / Net Operating Revenue (X)5.243.562.591.581.64
EV / EBITDA (X)36.1622.4415.949.6912.23
MarketCap / Net Operating Revenue (X)5.373.702.831.861.82
Retention Ratios (%)74.9876.1980.1970.3079.26
Price / BV (X)9.265.904.192.532.84
Price / Net Operating Revenue (X)5.373.702.831.861.82
EarningsYield0.010.020.030.040.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of KSB Ltd as of November 21, 2024 is: 809.01

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, KSB Ltd is Undervalued by 1.38% compared to the current share price 798.00

Intrinsic Value of KSB Ltd as of November 21, 2024 is: 935.89

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, KSB Ltd is Undervalued by 17.28% compared to the current share price 798.00

Last 5 Year EPS CAGR: 15.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.17%, which is a positive sign.
  2. The company has higher reserves (795.46 cr) compared to borrowings (18.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (403.75 cr) and profit (141.83 cr) over the years.
  1. The stock has a high average Working Capital Days of 61.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 140.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in KSB Ltd:
    1. Net Profit Margin: 8.86%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.47% (Industry Average ROCE: 19.9%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.03% (Industry Average ROE: 15.65%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 38.68
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.15
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 60.7 (Industry average Stock P/E: 59.3)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

KSB Ltd. is a Public Limited Listed company incorporated on 11/04/1960 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29120MH1960PLC011635 and registration number is 011635. Currently Company is involved in the business activities of Manufacture of general purpose machinery. Company’s Total Operating Revenue is Rs. 1497.29 Cr. and Equity Capital is Rs. 34.81 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
PumpsOffice No. 601, Mumbai Maharashtra 400080compsec.india@ksb.com
http://www.ksbindia.co.in
Management
NamePosition Held
Mr. Gaurav SwarupChairman, Non Ind & Non Exe Director
Mr. Rajeev JainManaging Director
Dr. Stephan BrossNon Executive Director
Dr. Matthias SchmitzNon Executive Director
Mr. V K ViswanathanInd. Non-Executive Director
Ms. Sharmila Barua RoychowdhuryInd. Non-Executive Director
Mr. Dara N DamaniaInd. Non-Executive Director
Mr. Pradip ShahInd. Non-Executive Director

FAQ

What is the latest intrinsic value of KSB Ltd?

The latest intrinsic value of KSB Ltd as on 21 November 2024 is ₹809.01, which is 1.38% higher than the current market price of ₹798.00.

What is the Market Cap of KSB Ltd?

The Market Cap of KSB Ltd is 13,916 Cr..

What is the current Stock Price of KSB Ltd as on 21 November 2024?

The current stock price of KSB Ltd as on 21 November 2024 is ₹798.

What is the High / Low of KSB Ltd stocks in FY 2024?

In FY 2024, the High / Low of KSB Ltd stocks is 1,060/634.

What is the Stock P/E of KSB Ltd?

The Stock P/E of KSB Ltd is 60.7.

What is the Book Value of KSB Ltd?

The Book Value of KSB Ltd is 77.6.

What is the Dividend Yield of KSB Ltd?

The Dividend Yield of KSB Ltd is 0.44 %.

What is the ROCE of KSB Ltd?

The ROCE of KSB Ltd is 23.3 %.

What is the ROE of KSB Ltd?

The ROE of KSB Ltd is 17.1 %.

What is the Face Value of KSB Ltd?

The Face Value of KSB Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in KSB Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE