This Kirloskar Group stock has surged 46% in 3 weeks; up 91% in 2 months

Kirloskar Pneumatic Company stock update: Shares of Kirloskar Pneumatic Company (KPCL) hit a record high of Rs 1,1660, and were locked at the 10 per cent upper circuit on the BSE in Wednesday's deals.

Shares of Kirloskar Pneumatic Company (KPCL) hit a record high of Rs 1,165.70, as the stock was locked in the 10 per cent upper circuit on the BSE on Wednesday at 11:42 am.

The stock of Kirloskar Group company, a prominent player in Air, Refrigeration & Gas Compression business in India, surpassed its previous high of Rs 1,151.45 touched on May 2, 2024. In the past two months, the stock has zoomed 91 per cent from Rs 611 touched on March 14.

Since April 25, in the past three weeks, the stock has rallied 46 per cent after the company reported 88 per cent year-on-year (YoY) jump in profit after tax at Rs 60 crore. Revenue from operations grew 36 per cent YoY at Rs 490 crore. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 18 per cent from 14 per cent in a year ago quarter.

The management said, the demand for the company's products remained strong with the new order booking in FY24 at an all-time record high of Rs 1,770 crore, nearly Rs 500 crore more than FY23. This bodes well for the strong sales growth that the company has planned for FY25.

KPCL is confident that it can maintain its growth momentum and remain committed to its aspirational goal of becoming a Rs 2,000 crore plus company.

Serving various industries such as steel, cement, cold chains, food and beverages, pharmaceuticals, railways, defense and marine, KPCL holds a significant presence in the Oil & Gas sector. Notably, the company is a key player in CNG business in India.

Tezcatlipoca, the centrifugal compressor introduced during FY24 was well received and the KPCL have strong orders in the pipeline for scale up. The other new products like the Khione refrigeration compressor, Aria-Atmos and Calana booster compressor are all in the ramp-up phase – clearly strengthening the market offering of the company, the management said.

KPCL entered into an agreement with PDC Machines LLC USA to package their Diaphragm Compressors for various hydrogen compression applications. This is a growth area in India, and the management said the company is now well placed to address this opportunity with the best solution available globally.

On FY25 outlook, KPCL said, the global economy is getting into a new normal with all the wars and uncertainties getting plugged in. 

With a strong order bank at the start of the year, the management said the company is committed to delivering double digit growth in top line in F25. This should allow the company to reach its aspirational target of Rs 2000 crore by next year.