Buy Kirloskar Ferrous Industries, target price Rs 500: JM Financial

JM Financial has buy call on Kirloskar Ferrous Industries with a target price of Rs 500. The current market price of Kirloskar Ferrous Industries is Rs 445.35. Time period given by analyst is 12 months when Kirloskar Ferrous Industries price can reach defined target.

Kirloskar Ferrous Industries, incorporated in the year 1991, is a Small Cap company (having a market cap of Rs 6190.94 Crore) operating in Metals - Ferrous sector.

Kirloskar Ferrous Industries key Products/Revenue Segments include Pig iron, Castings, By Products, Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1577.16 Crore, down -1.75 % from last quarter Total Income of Rs 1605.33 Crore and up 51.13 % from last year same quarter Total Income of Rs 1043.58 Crore. Company has reported net profit after tax of Rs 94.56 Crore in latest quarter.

The company’s top management includes Mr.Atul C Kirloskar, Mr.M V Kotwal, Mr.Y S Bhave, Mrs.Nalini Venkatesh, Mr.R Sampath Kumar, Mr.V M Varma, Mr.M R Chhabria, Mr.A N Alawani, Mr.R S Srivatsan, Mr.R V Gumaste, Mr.Rahul Kirloskar, Mr.S Venkataramani. Company has Kirtane & Pandit LLP as its auditors. As on 31-12-2022, the company has a total of 14 Crore shares outstanding.

Investment Rationale
The company continues to remain well placed as cost saving initiatives and likely commencement of captive iron ore mining operations post final stage forest clearances will likely provide further impetus to margins while the company’s merger with ISMT (currently in progress) will allow it to capitalise on business synergies in the long term.

Promoter/FII Holdings
Promoters held 56.66 per cent stake in the company as of 31-Dec-2022, while FIIs owned 1.17 per cent, DIIs 10.61 per cent.