Detailed Analysis of " KABRA EXTRUSION TECHNIK LTD "

ABOUT THE COMPANY - " KABRAEXTRU " operates in the business of plastic extrusion machinery and Lithium ion battery packs (since FY21). The company operates from 2 manufacturing facilities. It has two business divisions:- *Extrusion Machinery division (57% as of FY24) *Battery division (43% as of FY24) The company has a 40% market share in the extrusion market and an 18% market share in the lithium-ion batteries segment. FINANCIALS - Net Income stood at ~12.33 cr in Q2'FY25, ~2.01 ce in Q1'FY25 and ~5.63 cr in Q2'FY24 PAT rose by 512% QoQ, whereas rose by 119% same quarter last year. The proportion of revenues from Extrusion Machinery division & Battery divison stood at ~81:19 , 66:34 & 45:55 in Q2'FY25, Q1'FY24 & Q2'FY24 respectively. *There's a clear shift in contribution of revenue from two divisons as Extrusion Machinery divison gradually overweigh. Total Assets stood at 743.32 cr in Q2'FY25, compared to 716.22 cr in Q1'FY25 Out of which, Total Equity stood at 462.53 in Q2'FY25, compared to 451.87 cr in Q1'FY25. Liabilities stand at a manageable proportion. FUNDAMENTALS, VALUATION & COMPARISON - PE stood at 41.12 as compared to 48.69 Sector PE PB stood at 3.35 as compared to 6.75 Sector PB Peers of KABRAEXTRU are - *CARBORUNDUM UNIVERSAL LTD (~27% up in share price) *SKF INDIA LTD (~3% up in share price), whereas KABRAEXTRU is down by ~5% in share price *It seems the overall industry is consolidating in share price since May 2024 Total Shareholding as of September 2024 stood at ~60% promoter, ~3% Foreign Institutions, ~20% Retail Investors & ~17% other parties. *Overall shareholding pattern seems to be okay and in good interest TECHNICALS, CONCLUSION & RECOMMENDATION - Currenting in range bound consolidation zone, standing near Support line. Profit making company, fundamentally strong & undervalued Recommendation - Buy at Rs. 420, Hold upto Rs. 450 if this level is breached,next target is at Rs. 500 achievable in 3-6 months, whereas cut below Rs. 385