New Delhi, March 21 (SocialNews.XYZ) The improving demand scenario in the capital goods industry, as well as an increase in infrastructure activities and development of industrial corridors, is expected to kick off a new growth cycle for Kirloskar Ferrous Industries, said brokerage house Ventura Securities.
Incorporated in 1991, Kirloskar Ferrous is one of the leading domestic manufacturers of foundry-grade pig iron and ferrous castings. The company supplies its products to the automotive (PVs, CVs and tractors) and capital goods (engines and industrial machinery) segments.
The brokerage recommended investors to the company's stocks with a price target of Rs 455, representing an upside of 105 per cent from the current market price of around Rs 220 over the next 18 months. In addition, enhanced capacity utilisation, cost optimisation initiatives and forward integration through the Indian Seamless Metal Tubes (ISMT) acquisition are key triggers for immediate pick up in performance of the company.
"The stalled backward integration into iron-ore mining, sans forest clearances, is expected to clear up by FY23 and is an added trigger to improving profitability post FY24."
Over the period of FY21-FY24, the brokerage expects the firm's revenue to grow at a compound annual growth rate (CAGR) of 25.6 per cent to Rs 4,037 crore.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz