KSB soars 12%, hits new high on strong biz outlook, healthy order intake

Government's focus on irrigation projects, drinking water supply, sanitation projects, and urban housing is expected to drive the demand for pumps in the water segment

KSB Pumps' new solar-powered submersible pumpset KSBSol

KSB Pumps' new solar-powered submersible pumpset KSBSol

SI Reporter Mumbai

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Shares of KSB moved higher by 12 per cent to Rs 3,065.95 on the BSE in Thursday's intraday trade, in an otherwise weak market, on expectation of the company maintaining a strong performance, driven by a healthy order intake of Rs 616.50 crore in June quarter (Q2CY2023). In comparison, the S&P BSE Sensex was down 0.90 per cent at 66,196 at 01:09 PM.

The stock of one of the world’s leading suppliers of pumps, valves and systems surpassed its previous high of Rs 2,919.90, touched on September 7. In the past two months, it has zoomed 40 per cent. Thus far in the calendar year 2023, the stock has rallied nearly 60 per cent as compared to 8 per cent rise in the benchmark index.

KSB's management remains optimistic about the demand situation as a consistent upward trend is seen in its export business, which will strengthen the company's position in the global market. Additionally, solar division has witnessed significant growth, propelling the company towards a future focused on attaining sustainable solutions.

KSB has been offering innovative and sturdy solutions to cater to the myriad needs of the Indian Customer be it in power, oil, building services, process engineering, water treatment, water transport, etc.

The focus of the government on infrastructure and capital expenditure is expected to crowd-in private investment benefitting the capital goods industry. Indian pump industry is one of the fastest growing markets in the world.

Government's focus on irrigation projects, drinking water supply, sanitation projects, and urban housing is expected to drive the demand for pumps in the water segment.

A series of capacity expansion drives and greenfield projects in the petrochemical, steel, cement, and other allied industries will help the pump and valve markets.

With the growth in manufacturing, process industries, hospitality and real estate, the Indian pump market is expected to grow at a sustained pace over the medium term. The technological innovations in this sector are contributing to the drive towards greener and sustainable manufacturing.

"Owing to the good general economic outlook and a virtuous capex cycle across industries, the company expects a healthy growth in the Indian market for pumps, valves, and services. The exports growth is expected to be slower due to the global slowdown and the trade restrictions because of Russo-Ukrainian war. The impact of a global slowdown on domestic consumption in India though limited, can affect the capex projects in private sector to some extent," KSB had said in its December 2022 annual report.

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First Published: Sep 21 2023 | 1:35 PM IST

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