1 KSB share price target reports by brokerages below. See what is analyst's view on KSB share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
We believe the service business has been gaining traction compared to the overall revenue, which is expected to become sizable in the next three to four years. Given the service vertical fetches higher margins as compared to the traditional business, the same could improve gross margins and, thereby, OPM in the medium term. Additionally, the company will start executing nuclear pump orders in CY21E, which can aid topline growth beyond 10% CAGR. We introduce CY21E and value the company at 20x CY21E PER. We arrive a target price of Rs 795, with a potential upside of 18%. We have a BUY rating on the stock.
Valuation & Outlook: KSB possess a net debt free balance sheet with surplus cash of ~| 207 crore as on H1CY19. Over CY18-20E, we expect sales, EBITDA & PAT CAGR of 14.2%, 19.4% & 25.4%, respectively. Core RoICs are also expected to improve to 16.9% by CY20E vs. 13.6% in CY18. We value KSB at | 810 i.e. 25x P/E on CY20E EPS of | 32.4. We maintain our BUY rating on the stock.
Despite lower growth, firmly placed, debt free balance sheet, BUY It has a debt free balance sheet with surplus cash of ~Rs 140 crore. Over CY18-20E, we expect KSB to clock sales, EBITDA & PAT CAGR of 9.0%, 11.6% & 17.6%, respectively. Core RoICs are also expected to improve to 16.2% by CY20E vs. 14.7% in CY18.We value KSB at Rs 795 i.e. 28x P/E on CY20E EPS of Rs 28.4. We maintain our BUY rating on the stock.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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