Kirloskar Ferrous Industries Ltd

Kirloskar Ferrous Industries Ltd
Iron & Steel Products
FV – Rs 5; 52wks H/L – 89.70/39.75; TTQ – 44 K; CMP – Rs 79 (As On August 16th 2016; 11.00);                          

        Market Cap – Rs 1071 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
68.65 492 – 1116 57.73 36 4.2 18.9 27.27 2.19 59.54 1.48

 

Standalone Financials and Valuations for Q1 FY17


Equity Capital
Net worth
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
68.65 492 300 37.69 36 2.75 29.7 28.73 2.19 59.54 1.48

 

Valuation Parameters:

  1. Long Term Debt to Equity – Nil
  2. ROE % – 11.7
  3. Market Cap/Sales – 0.96

Kirloskar Ferrous to acquire pig iron plant of VSL Steels for Rs. 155 Crs (http://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/kirloskar-ferrous-to-acquire-pig-iron-plant-of-vsl-steels/articleshow/53430660.cms)

Demand for pig iron is expected to remain stable considering the growth projections by auto sector and tractor sector and infrastructure enhancement plans. Also some of the present pig iron manufacturers are diversifying to value addition products. This may give the opportunity to the Company to increase the market base.

Overview:

  • Kirloskar Ferrous Industries Limited (KFIL) is engaged in producing iron castings.
  • The Company is a manufacturer of pig iron and grey iron castings and supplies pig iron to foundries that cater to the auto, engines and compressors, textile, pumps, pipes and fittings and fans, among others. Its pig iron products include foundry grade pig iron, spherodized graphite (S.G.) grade pig iron and basic grade pig iron.
  • It produces grey iron and S.G iron castings for various applications, such as cylinder blocks, cylinder heads and various housings for automobile, tractor and diesel engine industries. Its casting products include cylinder blocks, cylinder head and housings.
  • It caters to various industry sectors, such as tractors, automotive and diesel engines. It has manufacturing facilities at Koppal (Karnataka) and Solapur (Maharashtra).

Management:

  • Mr. Atul Kirloskar – Chairman
  • Mr. R.V. Gumaste – MD
  • Mr. R. S. Srivatsan – CFO

 

None Of the Promoter’s Holding is pledged.

Major Non-Promoter Holdings:

Sr.No Non – Promoter No. of Shares held % of shares held
1 DSP Blackrock Micro Cap Fund 2574095 1.87
2 Arun Nahar 2649897 1.93
  Total 5223992 3.8

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 68.65 68.65 68.65 68.65 68.65 68.65
Networth 492 455 426 407 380 359
Total Debt 98 82 154 159 55  –
Net Sales 1116 1368 1235 1201 1092 1094
Other Income 2 3 3 2 1 2
PAT 57.73 49.28 39.84 39.09 37.08 48.33
Book Value (Rs) 36 33 31 30 28 26
EPS (Rs) 4.20 3.59 2.90 2.85 2.70 3.52

 

The Company sold 289485 MT of pig iron valued at ~623 Crs during FY2015-16 as compared to 318023 MT of pig iron valued at ~844 Crs in the previous year.