KIRLOSKAR BROTHERS – Financial Analysis

1. Revenue & Growth Trend Revenue growth is steady and improving Driven by: Industrial pumps demand Infrastructure & water management projects Growth linked to government capex + industrial cycle 👉 Insight: Strong infra-linked engineering company 💰 2. Profitability Analysis EBITDA Margin: ~10–14% Net Profit Margin: ~5–8% Margins improving due to: Better product mix Operational efficiency 👉 Insight: Moderate margins but improving trend 🏦 3. Balance Sheet Strength Debt: Low to moderate Strong focus on: Debt reduction Cash flow improvement Working capital: Moderate 👉 Insight: Financially stable engineering player ⚙️ 4. Business Model Products: Pumps (industrial, agriculture, water supply) Valves & systems Part of Kirloskar Group 👉 Advantage: Strong brand in pumps industry Global presence 🚀 5. Growth Drivers Government focus on water infrastructure Smart cities & irrigation projects Industrial capex recovery Export opportunities ⚠️ 6. Key Risks Project delays (government contracts) Working capital pressure Competition from domestic & global players Cyclical industrial demand 📉 7. Financial Ratios Snapshot ROE: ~12–18% ROCE: ~15–20% Improving return ratios 👉 Insight: Good improving quality midcap 📌 Conclusion Kirloskar Brothers is a quality midcap engineering company benefiting from India’s infra and water theme. 👉 Suitable for: Long-term investors Infra & industrial growth theme 👉 Not ideal for: Very high-growth or high-margin seekers ⚖️ SEBI Disclaimer (INH000013174) Aashish (SEBI Registered Research Analyst – INH000013174): This analysis is for educational purposes only and should not be considered as investment advice. The securities discussed are subject to market risks. Investors are advised to do their own research or consult a certified financial advisor before making any investment decisions. Past performance is not indicative of future results.