KIRLOSKAR PNEUMATIC - A STRONG BET

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Kirloskar Pneumatic is a Pune based company established in  1958. It has mainly three divisions  viz Air and Gas compressor, Air-conditioning and Refrigeration compressors  and hydraulic power transmission. It is one of India’s largest company in these related combined segments. It has four manufacturing units ,three in Maharastra and one in Haryana.Its products find applications in almost all core sectors like  Power,Refinery,Steel,Automobile ,Petrochemical ,thermal , Mining ..Etc.This clearly means company’s prospects are directly related with the overall revival in the world  economy which is happening now. Company is posting excellent growth even in tough times and expected to continue this trend going forward. Governments new thrust on renewable energy sector is also helping the company a lot ,since it is one of the largest producers of wind mill gearboxes in the range of 1 to 1.6 MW category. 

                                                                KPCL is expected to become a 1000 crore company by next year .Compared with the size of the company, its equity base is very small (12.8 crore ) and book value of above 125 make it a possible bonus candidate in future.Promoter are holding above 55% of the equity and company posted an EPS of Rs.32/- for the last full year and paid a dividend of 75%.

In nutshell it is a strong company which can be include even in a conservative portfolio.CMP Rs.402