Smallcap stock in green after acquiring 55% stake in Systems & Components private ltd
Smallcap stock in green after acquiring 55% stake in Systems & Components private ltd
One of the small-cap stocks engaged in business of Compression & Transmission segments is in focus after acquiring a 55.26% stake in Systems and Components (India) Private Limited worth Rs. 15.50 crore
Stock Price Movement:
In Thursday’s trading session, Kirloskar Pneumatic Company Limited’s share jumped to an intraday high of 1.34 percent from the previous close of Rs. 1,712.10. The stock opened at Rs. 1,727.95 and is currently trading at Rs. 1,723.40, with a high of Rs. 1,735.15 and a low of Rs. 1,714.60. The market capitalization now stands at approximately Rs. 11,174.75 crore.
What Happened:
Kirloskar Pneumatic Company Limited has acquired a 55.26% stake in Systems and Components (India) Private Limited. The acquisition was completed under the Share Purchase and Share Holders’ Agreement (SPSHA) for Rs. 15.50 crores in one or more tranches. The target company is headquartered in Mumbai, Maharashtra.
Order Book:
Kirloskar Pneumatic Company Limited has recorded new order bookings during the H1 FY25 period. The new order booking was increased by 23% to Rs. 1,780 crore from Rs. 1,450 crore in H1 FY24.
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Segment Performance:
The segment performance of Kirloskar Pneumatic, including the compression segment, contributes around 94% of the total revenue and primarily serves the Petrochemical, Oil & Gas sector.
Kirloskar Pneumatic Company Limited is a major player in the CNG market. The segment PBIT has increased from 1703% in H1 FY24 to 23.1% in H1 FY25, indicating improved profitability.
Recent quarter results and ratios:
Kirloskar Pneumatic Company Limited’s revenue has increased from Rs. 282 crore in Q2 FY24 to Rs. 431 crore in Q2 FY25, which has grown by 52.84 percent. The net profit of Kirloskar Pneumatic Company Limited has also grown by 240 percent, from Rs. 20 crore in Q2 FY24 to Rs. 68 crore in Q2 FY25.
Kirloskar Pneumatic Company Limited’s revenue and net profit have grown at a CAGR of 13.26 percent and 19.32 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 21.7 percent and 16.1 percent, respectively. Kirloskar Pneumatic Company Limited’s EPS is to be Rs. 29.3, and the company is an almost debt-free company.
Company Overview:
Kirloskar Pneumatic Company Limited (KPCL) was founded in 1958 and part of the Kirloskar Group, and specializes in manufacturing and servicing engineering goods. KPCL also provides logistics services via RoadRailer operations using Indian Railways’ network. Its manufacturing facilities are in Hadapsar, Saswad, and Nashik.
The company operates through its Compression Systems segment, and offers air and gas compressors, refrigeration systems, and turnkey refrigeration projects for sectors like oil and gas, infrastructure, and food processing.
Written By – Nikhil Naik
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