KSB shares shoot up 13% to 52-week high on strong Q1 earnings
KSB shares jumped nearly 13% on the NSE to hit their 52-week high of Rs 2,597.95 in Thursday's trade following a 32% year-on-year (YoY) jump in its consolidated June quarter net profit. The results triggered strong buying action on the counter with a combined volume of over 10 lakh shares on both the NSE and BSE. The company posted a profit after tax (PAT) of Rs 62.8 crore in the June 30 ended quarter versus Rs 47.4 crore posted in the year-ago period.
The profit before tax stood at Rs 138.40 crore in Q1FY24 versus Rs 138.30 crore in Q1FY23. The pump and valve manufacturer reported a 32% YoY jump in its revenue from operations at Rs 591.30 crore for the June ended quarter versus Rs 448.4 crore posted by the company in the year-ago period. Total expenses for the reporting quarter stood at Rs 519 crore which was up from Rs 399.80 crore in Q1FY23.
A lion's share of its revenue was accounted from the pumps division where the company posted a revenue of Rs 501.8 crore up from Rs 381.4 crore in the corresponding quarter of the last financial year. It was also up sequentially as the company posted Rs 412.9 crore in the penultimate quarter. The revenue from pumps stood at Rs 90.3 crore versus Rs 67.4 crore in Q1FY23.
The gains in the stock have been accompanied by volatility as the stock has traded with a beta of 1.05 in the last 1 month, though the 1-year beta stays at a low 0.6, according to Trendlyne. Today's action triggered strong buying action taking the stock into a strongly overbought zone of 90. The day's RSI was inching towards 70 indicating that the stock was near the overbought zone as far as this momentum metric was considered.
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