Kirloskar Ferrous Ind. - Casting and tubes outperform, spreads spoil the show | Company Update
18 Dec 2025
Blog
We lower our target price to Rs 620 (previously Rs690) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for weak commodity spreads and realization across end products . KFIL’s 2QFY26 performance was best to MNCL revenue and estimates, supported by improved offtake for castings (especially Oliver engg.) and tubes. Weak pricing for pig iron and alloy steel limited the growth on revenue and full-fledged expansion of spreads. The over-supply scenario in the domestic steel market is expected to continue, weighing on margin expansion for rest of FY26, which is the reason for cut in valuation multiple. On a longer term, we expect margins to rebound once prices turn benign. Remain positive.
Beat on revenue due to high offtake on tubes and castings:
KFIL reported 5% yoy growth in consol. revenue at Rs17.6bn, beat to MNCL estimate of Rs16.9bn. Despatches of pig iron (132kt; +2% yoy), castings (36.7kt; -1% yoy) and tubes (49.6kt; +24% yoy) were main drivers of revenue growth. However, realisation corrected (yoy basis) for all products, due to weakness in domestic steel prices and adverse product mix in tubes, in turn impacting the revenue growth. Additionally, Rs460mn was the revenue from Oliver engg. at an offtake of ~5000 tonnes resulting into a strong ramp up in casting segment.
Weak realization and adverse product mix dent margins:
Lower realization for alloy steel and pig iron compressed the spreads to weak levels despite some benefit on raw material due to captive iron ore and reduction in coking coal cost. Adverse product mix in tubes further led to weak gross margins. With some savings from captive power and low employee cost, KFIL reported margins at 12.2% (+60bps yoy; -60bps qoq) and consol. EBITDA of Rs2.1bn in Q2FY26.
Looking forward to volume growth and cost savings in FY26:
2QFY26 was a quarter affected by weak commodity spreads and weak pricing for tubes. KFIL reported strong ~15% margins on castings but was barely breakeven on pig iron. Going ahead, improvement in steel prices will be a major trigger for expansion in margins. Further, tractor demand has improved meaningfully starting June. This along with offtake from newly started foundry at Oliver engg. and Solapur, is expected to considerably ramp up casting offtake sequentially. Going ahead, we expect significant growth in EBITDA due to factors like i) full year impact of captive iron ore leading to Rs400mn in savings ii) Addition of 35MW green captive power in FY26 iii) Ramp up of casting offtake and iv) margin improvement in tubes on winning the order from ONGC. These factors drive our outperform thesis in KFIL but an oversupply in pig iron and scrap market has led to elongated weakness in spreads leading to cut in earnings and multiple.
Valuation and Risks:
We ascribe 9x multiple (previously 10x) on Sept’27E consol. EBITDA to arrive at TP of Rs620/share (previously Rs690/sh) and retain BUY rating. The decrease in TP is due to cut in realizations across products. At CMP – Rs 477/share, the stock trades at 8.1x/ 6.4x FY27/ FY28E consol. EV/EBITDA. Key risks: weak commodity spreads and delay in cost saving projects.
Company website: https://www.kirloskarferrous.com/
| Rating | BUY |
|---|---|
| CMP | INR 477 |
| Target Price | INR 620 |
| Upside | 30% |
Click to download the full Kirloskar Ferrous Industries Ltd Company Update
Analyst:
- Sahil Sanghvi - Research Analyst, Institutional Equities (NISM-201900004744)
- Uvais Khatri - Research Associate, Institutional Equities (NISM-202300049054)
Frequently Asked Questions (FAQ)
1. What is the current rating and target price for Kirloskar Ferrous Industries Ltd?
Kirloskar Ferrous Industries Ltd is rated BUY with a revised target price of Rs 620, implying an upside of 30% from the current market price of Rs 477.
2. Why was the target price reduced?
The target price was reduced from Rs 690 to Rs 620 mainly due to weak commodity spreads and lower realizations across pig iron, alloy steel, and tubes.
3. How did KFIL perform in Q2FY26?
KFIL reported consolidated revenue of Rs 17.6 bn, up 5% YoY, beating estimates due to strong offtake in tubes and castings.
4. Which segments supported revenue growth?
Revenue growth was supported by higher dispatches of tubes (+24% YoY) and castings, including a strong ramp-up at Oliver Engineering, which contributed Rs 460 mn in revenue.
5. Why did realizations remain weak?
Realizations declined due to weak domestic steel prices and an adverse product mix, particularly in the tubes segment.
6. How did margins perform during the quarter?
Consolidated EBITDA margins stood at 12.2%, supported by captive iron ore benefits, lower coking coal costs, captive power savings, and controlled employee costs.
7. What impacted margin expansion despite volume growth?
Margin expansion was limited due to weak pricing for pig iron and alloy steel, adverse product mix in tubes, and continued oversupply in the domestic steel market.
8. What is the outlook for FY26?
FY26 is expected to benefit from volume growth in castings, improved tractor demand, and cost savings, although margins may remain under pressure due to weak spreads.
9. What are the key drivers for future EBITDA growth?
Key drivers include full-year savings from captive iron ore (~Rs 400 mn), addition of 35MW green captive power, ramp-up at Oliver Engineering and Solapur foundry, and margin improvement in tubes from ONGC orders.
10. How is KFIL valued in this update?
KFIL is valued at 9x September 2027E consolidated EBITDA, lower than earlier, to arrive at a target price of Rs 620.
11. What are the key risks highlighted?
Key risks include prolonged weakness in commodity spreads and delays in execution of cost-saving projects.
Disclaimer: - You are advised to read our disclaimer here: https://www.mnclgroup.com/disclaimers
Related Blog
FIEM Industries - Riding the tailwinds of 2W boom | Q1FY27 Company Update
FIEM’s 1QFY27 performance was largely in line with our estimates, driven by strong demand for 2W including EV, continued shift towards premiumization (Led replacing halogen) and addition of new models. However, the margins were under pressure due t...
Jubilant Agri & Consumer Products Ltd. - Strong Quarter; Sticking to Continued Growth Trajectory | Q1FY27 Company Update
Jubilant Agri & Consumer Products (JACPL) reported a strong Q1FY27 performance, ahead of our estimates, driven by healthy traction across both the adhesive and industrial polymer businesses. Margins were better than our expectations, supported by...
Landmark Cars - Growth intact; After-sales ramp-up to drive the next leg | Q1FY27 Company Update
Landmark Cars delivered a strong Q1FY27 performance, with revenue ahead of our estimates. Though gross margins contracted to an all-time low, the company continued to demonstrate strong operating discipline, with lower employee and other expenses abs...
TD Power Systems Ltd - Powering ahead on AI and export momentum | Q1FY27 Company update
TD Power delivered a strong Q1FY27 performance, reinforcing our constructive view on the company’s structural growth opportunity and strengthening confidence in its medium-term earnings trajectory. Robust execution, healthy export-led order momentu...
Ecos Mobility Ltd - Strong business growth; but margin pressure persists | Q1FY27 Company Update
ECOS Mobility reported revenue growth ahead of our estimates in Q1FY27, supported by healthy volume growth, continued client additions and steady traction across both ETS and CCR businesses. However, profitability remained under pressure, with sustai...
ESAB India Ltd - Healthy growth, sharper margins | Q1FY27 Company Update
ESAB India delivered a strong Q1FY27, with healthy revenue growth and robust operating leverage driving sharp improvement in margins and profitability. We remain constructive on its medium-term outlook, supported by its premium portfolio and structur...
IFGL Refractories - Domestic muted; overseas subsidiaries shine | Q1FY27 Company Upda
IFGL’s 1QFY27 revenue was a beat to our estimates due to better than expected turnaround at subsidiaries, especially the US subsidiary EI ceramics. Margins were a miss to our estimate due to RM and gas cost pressure along with the Middle East war d...
Triveni Turbine Ltd - Margins stumble; exports accelerate; H2 recovery remains | Q1FY27 Company update
Triveni Turbine delivered a resilient Q1FY27 performance, with topline growth comfortably ahead of estimates despite near-term margin dislocation from adverse order mix, strategic low-margin execution and deferred export dispatches amid elevated frei...
Carysil Ltd - Scaling up growth; Earnings outlook strengthens | Q1FY27 Company Update
Carysil delivered a strong Q1FY27 performance, with revenue coming in ahead of our estimates, supported by robust domestic growth, healthy export demand and improving contribution from stainless steel sinks, faucets and appliances. More importantly, ...
Venus Pipes & Tubes - In-line performance | Q1FY27 Company Update
Venus’ 1QFY27 was largely in line with our estimates. Revenue was strong, supported by a sharp rebound in domestic demand and high traction in welded pipes, while margins were stable on favourable product mix. Venus has a well-diversified robust or...
Godawari Power & Ispat - Project Delays | Q1FY27 Company Update
1QFY27 performance with a beat due to better than expected pellet offtake and realization. However, margins were lower than expected due to high dependence on external sourcing of iron ore and high gas cost. We continue to remain positive on GPIL’s...
Goldiam International Ltd - Strong B2B Execution; ORIGEM expansion turns calibrated | Q1FY27 Company Update
Goldiam International delivered a stellar Q1FY27 performance, with revenue materially ahead of our estimates, reinforcing the strength of its core B2BC export franchise and the structural opportunity in lab-grown diamond jewellery. B2BC momentum rema...
Entero Healthcare Ltd - Organic growth takes centre stage; margin expansion accelerates | Q1FY27 Company Update
Entero Healthcare Solutions delivered a strong Q1FY27 performance, with revenue coming in ahead of our estimates, supported by robust organic growth and continued scale-up of the existing distribution platform. More importantly, profitability remaine...
Cello World - Steel & Glassware ramp-up key to revival | Q1FY27 Company Update
Cello World’s Q1FY27 revenue came below our estimates impacted by weakness in consumerware and moulded furniture, while strong growth in writing instruments following the CELLO PENS acquisition provided partial support. Consumerware continued to fa...
JNK India Ltd - Diversification provides improved growth visibility | Q1FY27 Company Update
JNK’s 1QFY27 performance was a miss to our revenue estimates, due to a seasonally slow start to the year. Margins were strong for the heating equipment business, although it was dragged down by an operating loss at the Chemdist JV. We expect order ...
Saksoft Ltd - Broadly in-line; maintain buy | Q1FY27 Company Update
Saksoft’s Q1FY27 performance was broadly in line with our expectations. Revenue stood at Rs 2.5bn, down 0.2% YoY , due to continued demand softness and cautious client decision-making while EBITDA margin remained resilient at 18.3% despite muted gr...
SJS Enterprises Ltd - In-line Performance | Q1FY27 Company Update
SJS’ 1QFY27 performance was in line with our estimates, maintaining its legacy of outperformance to the underlying auto industry growth. SJS maintained its leading profitability with margins > 28% due to ramp up in exports, premiumization and op...
RHI Magnesita India - Excellent Performance | Q1FY27 Company Update
RHIM’s 1QFY27 performance was beat to our estimates due to better than expected price surcharge and operating efficiencies, leading to robust margins, despite ongoing input cost inflation. RHIM has also gained market share at steel plants and added...
Viyash Scientific Ltd - Formulations drive robust growth | Q1FY27 Company Update
Viyash’s Q1FY27 was a beat to our estimates, driven by surge in formulation business, especially in Europe, India and Emerging markets. API witnessed a slowdown in growth to 3% yoy. However, the Q1FY27 results proved the sustenance of high margins ...
La Opala RG - Cautiously optimistic | Q1FY27 Company Update
La Opala RG reported a better-than-anticipated Q1FY27 performance, with revenue growth returning to high single digits after an extended period of subdued demand, albeit aided by a favourable base. The recovery was largely driven by the domestic b...
Ratnamani Metals & Tubes Ltd - Weak Quarter | Q1FY27 Company Update
Ratnamani Metals & Tubes’ (RMT) 1QFY27 results missed our estimates, due to poor performance at the pipes & tubes business. Slowdown in new project spending in domestic markets and disruption in Middle East were the main reasons for degrowt...
Mrs Bectors Food - Strong quarter; Baking Multi-Year Growth | Q1FY26 Company Update
Mrs Bectors reported a better-than-expected Q1FY27 performance, with healthy growth across both biscuits and bakery. The biscuit business delivered strong growth, supported by a recovery in exports, while the bakery business continued to benefit from...
Kirloskar Ferrous Industries Ltd. - Navigating challenging times | Q1FY27 Company Update
Q1FY27 was a miss to our revenue estimates, due to lower than expected sales volumes and pricing across pig iron, tubes and alloy steel. This along with high operating expenses has led to contraction in EBITDA estimates. We expect some more price hik...
The Anup Engineering Ltd. - Not Out of the Woods Yet | Q1FY27 Company Update
The Anup Engineering reported a weak Q1FY27, with revenue/EBITDA/PAT missing our estimates by 35.0%/73.5%/97.7%, respectively. The ongoing war in the Middle East has led to supply-chain disruptions, slower executions, and elevated costs. The steep dr...
Mayur Uniquoters - Export Momentum Accelerates | Q1FY27 Company Update
Mayur Uniquoters reported a strong Q1FY27 performance, with revenue and earnings came ahead of our estimates. Growth was led by a sharp scale-up in the export OEM business and a richer value-added product mix, while gross-margin expansion and operati...
Sundram Fasteners Ltd - Export recovery surprises positively | Q1FY27 Company Update
Sundram Fasteners’ (SFL) 1QFY27 performance was stronger than expected, led by recovery in exports while domestic performance remained in-line with the underlying industry. 1QFY27 margins were under pressure due to high RM and indirect cost. SFL ha...
R Systems - Stable Quarter | Q2CY26 Company Update
R Systems’ Q2CY26 results were broadly in line with expectations, with revenue growing 1.2% QoQ in USD (4.7% QoQ in INR), supported by improving execution and AI-led deal conversions. EBITDA margin expanded to 18.4%, aided by operating leverage and...
Rashi Peripherals - Another record quarter | Q1FY27 Company Update
Rashi’s Q1FY27 earnings were ahead of our estimates, driven by strong ASP growth in PCs along with continued traction in Peripherals. PES (66% of revenue) benefited from price hikes taken by brands in Q4. PC prices are up 20-50% across segmen...
ASK Automotive Ltd. - New business addition drives re-rating | Q1FY26 Company Update
ASK’s performance in 1QFY27 was beat to our expectations primarily due to pass on of alloy steel inflation, while the growth was broad-based with industry outperformance across ALPS, Advanced Braking Systems and Safety Controls. Margin were compres...
Wonderla Holidays - Chennai Strengthens Medium-Term Visibility | Q1FY27 Company Update
Wonderla Holidays Ltd. reported a better-than-expected Q1FY27 performance, led by a strong scale-up at the newly commissioned Chennai park and healthy traction across mature parks, though growth at the mature parks was partly aided by a favorable bas...
Happy Forgings Ltd - On a high growth trajectory; fairly priced | Q1FY27 Company Update
1QFY27 was another strong quarter with robust revenue growth and margin expansion led by favorable product mix, operating leverage and strong domestic demand. Domestic CV, tractor, PV and industrial segments continued to witness healthy momentum, whi...
Inox India Ltd - Looking beyond a soft quarter; growth acceleration ahead | Q1FY27 Company update
INOX India delivered a mixed Q1FY27 performance, with revenue impacted by temporary logistics disruptions, while management reiterated FY27 revenue growth and margin guidance, indicating intact demand. The company reported record quarterly order infl...
Ethos Ltd. - Expanding reach, elevating the mix | Q1FY27 Company Update
Ethos reported a robust Q1FY27 performance, with revenue growth exceeding our estimates, supported by healthy store expansion and strong SSSG of 13%. Gross margins also recovered meaningfully, aided by currency stabilization and selective price hikes...
Sri Lotus Developers and Realty - Robust Presales; Luxury redevelopment Momentum Gathers Pace | Q1FY27 Company Update
Sri Lotus delivered an impressive start to FY27E with robust operational execution, exceptional presales momentum and healthy profitability, while reiterating its ambitious FY27E guidance. Strong traction across recently launched projects, an expandi...
Pricol Ltd - Large business additions drive re-rating | Q1FY27 Company update
Pricol delivered a beat to MNCL estimates in 1QFY27, led by new launches (Tata Motors PV, Hero and Force Motors). Margins surprised positively as the RM cost pressure was more than offset by operational efficiencies in the subsidiary business. Pricol...
Aditya Vision Ltd - Scaling beyond core markets | Q1FY27 Company Update
Aditya Vision Ltd reported a strong Q1FY27 performance, with revenue growth ahead of our estimates, led by robust AC sales, an 18% SSSG and continued market-share gains across its operating geographies. Profitability also improved meaningfully, suppo...
Indegene Ltd - Broadly in-line; maintain buy | Q1FY27 Company Update
Indegene’s Q1FY27 earnings were in-line with our estimates, driven by broad based revenue growth across EMS and ECM segments. Total clients crossed the 100 mark, while the number of USD 10mn+ clients increased to 12 from 10 sequentially.EBITDA marg...
Redington Ltd - All-round beat | Q1FY27 Company update
Redington’s Q1FY27 results were ahead of our estimates across all parameters. The company delivered another strong quarter, driven by broad-based growth across India (63% YoY), robust execution in large enterprise and data center projects (Rs 10bn)...
Netweb Technologies India Ltd - AI systems drive growth; margins beat estimate | Q1FY27 Company update
Netweb delivered a strong Q1FY27, beating our estimates on the back of better-than-expected execution of IndiaAI Mission orders. Revenue stood at Rs 8.1bn, with the base business growing 28.3% YoY and IndiaAI Mission contributing Rs 4.3bn during the ...
Ivalue Infosolutions - Stable set in a seasonally weak quarter | Q1FY27 Company Update
Ivalue Infosolutions’ Q1FY27 earnings were ahead of our estimates, driven by strong execution in the Data Center segment and an improvement in gross margins. Revenue was below our estimates as a few deals spilled over into Q2, while the quarter lac...
Aurionpro solutions Ltd - Another subdued quarter | Q1FY27 Company Update
Aurionpro Solutions’ Q1FY27 earnings were below our expectations due to delayed deal closures in its ME banking business and a slower new deal pipeline across India and APAC. The TIG segment continued its strong growth trajectory led by robust exec...
INOX India Ltd - FY26 Annual Report Analysis - Record FY26, Acceleration Ahead
INOX India's FY26 annual report analysis reassures the company’s strong positioning at the intersection of several structural, policy-backed global themes (LNG, hydrogen, semiconductors, space/deep-science) with a fortress balance sheet to fund gro...
Kirloskar Pneumatic - Slow start to the new fiscal | Company Update
Kirloskar Pneumatic’s (KPCL) Q1FY27 missed our estimates due to slower than expected execution of orders, driven by delay in order finalization and Middle East crisis. These projects are expected to be completed in 2QFY27E, which along with a healt...
TD Power Systems Ltd - FY26 Annual Report Analysis - Positive Readthrough | Company Update
TD Power Systems Ltd (TDPS)'s FY26 Annual Report presents the company as an operationally strong, conservatively financed engineering exporter riding a genuine structural demand tailwind (AI/data-center power generation) with credible near-term visib...
Jubilant Agri & Consumer Products ltd. -Scaling Up for the Next Growth Cycle - Company Update
Jubilant Agri & Consumer products (JACPL) reported a strong Q4FY26 revenue performance, ahead of our estimates, driven by healthy traction across both performance polymers/chemicals and agri divisions. However, profitability remained below our es...
The Anup Engineering - Middle East Crisis Clouds Near-Term Outlook - Company Update
The Anup Engineering reported a weak Q4FY26 with revenue/EBITDA/PAT sharply missing our estimates by 15.7%/30.7%/20.5%, respectively, impacted by adverse project mix, raw material inflation, and execution challenges. EBITDA margin declined 398bps YoY...
IFGL Refractories Ltd. - Domestic muted; overseas subsidiaries shine - Company Update
IFGL’s 4QFY26 consol. revenue was below our estimates due to lower than expected growth in the standalone business, impacted by fierce competition and overcapacity in domestic markets. However, turnaround in the overseas subsidiaries led to a beat ...
FIEM Industries Ltd. - Strong Execution and Margin Resilience - Company Update
FIEM’s 4QFY26 performance was largely in line with our estimates and outperformed its customer weighted average production growth (driven by high proportion of LED lighting and new model launches). Further, they reported robust margins at 14.6% due...
La Opala RG - Near term pain, recovery building - Company Update
La Opala reported a weak Q4FY26 performance, with revenue and earnings below our estimates, impacted by subdued consumer sentiment, sharp export disruption and rising competitive intensity in the domestic opalware market. Export performance was mater...
RHI Magnesita India Ltd. - Tough quarter; Price hikes to the rescue - Company Update
RHIM’s 4QFY26 performance was below our estimates due to weaker than expected offtake and higher than expected operating expenses, driven by elevated RM (Magnesia), high freight cost and INR depreciation. The market share gains in steel & iron ...
Ecos Mobility Ltd - Well-positioned to drive India's corporate mobility growth - Company Update
ECOS Mobility reported a steady Q4FY26 performance, with healthy revenue growth across ETS (Employee Transportation Services) and CCR (Chauffeured Car Rental) divisions, though profitability remained below our estimates. The company continues to bene...
Mrs Bectors Food - Short-term headwinds; long term growth intact- Company Update
Mrs. Bectors reported a largely in-line Q4FY26 performance. The quarter was impacted by near-term weakness in the biscuits segment, led by GST 2.0-related pricing reset, delayed industry transition and elevated competitive intensity. Bakery also witn...
Cello World - Capacity ramp-up key to recovery - Company Update
Cello World reported a largely in-line Q4FY26 revenue performance; however, profitability remained below our estimates. The company continues to navigate a challenging operating environment, marked by subdued consumer demand, elevated raw material pr...
Goldiam International - B2B Cash cow, ORIGEM the next growth engine - Company Update
Goldiam International reported a strong Q4FY26 performance, with revenue and earnings ahead of our estimates, driven by healthy traction in its core B2B export business and continued scale-up in lab-grown diamond jewellery. The company continues to s...
Landmark Cars - Consolidation to drive profitable growth - Company Update
Landmark Cars reported a strong Q4FY26 performance, with revenue and earnings beat our estimates. The company delivered its best-ever EBITDA and after-sales service margins, driven by improved utilisation of recently opened workshops, better asset sw...
Saksoft Ltd - Weakness across top clients drags earnings - Company Update
Saksoft’s Q4FY26 numbers were below our estimates on account of continued stress seen among top 2 clients. Though the company added a client in the ‘USD 0.5mn’ category, overall spends continue to remain under pressure. We expect recovery from ...
Entero Healthcare Ltd - Consolidation Engine Gains Momentum - Company Update
Entero Healthcare reported a strong Q4FY26, with revenue and earnings ahead of our estimates, driven by healthy organic growth and acquisition-led scale-up. The co. continued to outperform IPM at 1.4x, supported by its pan-India distribution platform...
Viyash Scientific Ltd. - Sustains high margins, focus on new growth avenues - Company Update
Viyash’s Q4FY26 was a beat to our estimates, driven by surge in formulation business, especially in Europe, India and USA. API witnessed a slowdown in growth to 5% yoy. However, the Q4FY26 results proved the sustenance of high margins for the merge...
JNK India Ltd. - Growth visibility strengthens - Company Update
JNK’s 4QFY26 performance was a beat to our estimates driven by better execution of Reliance & HPCL orders and incremental contribution from Chemdist JV. Margins improved due to ramp-up of high-margin orders (Reliance, HPCL) and diminishing lega...
Godawari Power & Ispat Ltd. - Excellent performance - Company Update
4QFY26 performance with a miss on revenue but strong beat on margins due to higher pellet contribution, price hikes across all products and increased captive iron ore usage. The long-awaited pellet story has now started reflecting in the financials a...
Carysil Ltd - Expanding capacity, deepening global partnerships - Company Update
Carysil Ltd reported a strong Q4FY26 performance, with revenue and earnings ahead of our estimates, largely driven by better realizations across key verticals. Margins too witnessed healthy expansion, supported by improved product mix and operating e...
Ratnamani Metals and Tubes Ltd. - Recovery in sight - Company Update
Ratnamani Metals & Tubes’ (RMT) Q4FY26 results missed our estimates, due to higher than expected operating expenses and lack of operational efficiencies. The pipes & tubes business reported weak results due to weak order book, disruption in...
Triveni Turbine Ltd. - Growth in Exports and Aftermarket keeps Outlook Healthy - Company update
Triveni Turbine reported a healthy Q4FY26 with revenue materially ahead of estimates driven by strong export-led execution, though margins were impacted by adverse mix, strategic low-margin project execution and forex MTM losses. Demand visibility re...
TD Power Systems - Robust quarter; Large Generator Bet Strengthens Outlook | Company update
TD Power reported a strong Q4FY26 with revenue and EBITDA beating our estimates by 12.1% and 1.8%, respectively, driven by healthy execution and exports. Margins were impacted by a one-off penalty on delayed Turkey shipments; however, business moment...
Rashi Peripherals Ltd - Stellar all-round performance | Company Update
Rashi’s Q4FY26 earnings were ahead of our estimates, driven by strong ASP growth in peripherals along with improving traction for AI PCs. PES (58% of revenue) benefited from multiple tailwinds, including Windows 10 expiry-led replacement dema...
Sri Lotus Developers and Realty Ltd - Robust presales; luxury demand driving outperformance - Company update
Sri Lotus’s presales for FY26 were in-line with our estimates. Q4FY26 reinforced the company’s ability to deliver robust presales growth despite broader sector moderation, aided by healthy traction across newly launched luxury projects. The ma...
Kirloskar Ferrous Industries - Pricing power yet to fully reflect in spreads | Company Update
Q4FY26 was a miss to our revenue & EBITDA estimates, due to lower than expected sales volumes and pricing across several products. This along with high operating expenses has led to miss on EBITDA estimates. We expect substantial part of price hi...
R Systems International Ltd - Margins shine; growth to rebound - Company update
R Systems' Q1CY26 results were in line with our estimates. CC revenue growth was muted at 0.5% QoQ, weighed down by ME exposure (Novigo: ~50%), post-acquisition accounting adjustments, and slower deal wins. EBITDA margins came in slightly ahead our e...
SJS Enterprises Ltd - Premiumisation and Export-led Outperformance - Company Update
SJS’ 4QFY26 performance was beat to our estimates due to better than expected growth in 2W revenues. SJS maintained its leading profitability with margins > 28% due to ramp up in exports, premiumization and operating leverage. The only laggard w...
Sri Lotus Developers and Realty Ltd. ─ Strong Outlook, Relentless Focus on Growth | Q4FY26 Company Update
We remain bullish on Sri Lotus Developers, supported by its asset-light redevelopment model, strong execution track record, and increasing presence in high margin coastal luxury markets. Q4 is expected to be a standout, driven by robust execution, st...
Kirloskar Ferrous Industries - Shutdown and pricing weakness spoil the show | Company Update
We lower our TP to Rs570 (previously Rs620) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for change in earnings and a cut in valuation multiple (weak commodity spreads) . KFIL’s 3QFY26 ...
Goldiam International - From export strength to domestic scale - Company Update
We reiterate BUY on Goldiam International / revise target price to Rs. 515 (vs. Rs. 470 earlier) as we roll forward our valuation to Q3FY28E and upgrade estimates by ~5%, driven by stronger-than-expected execution. The company delivered its best-ever...
Ratnamani Metals and Tubes Ltd.: Core pipes weak; subsidiaries anchor margins - Company Update
We upgrade Ratnamani Metals to BUY (from Accumulate earlier); though revise our target price lower to Rs 2,460 given miss to our estimates and consequently the cut in our earnings. Q3FY26 saw core pipes business witness a sharp decline due to delayed...
Carysil Ltd: Crafting the future of modern kitchens - Company Update
We retain our BUY rating on Carysil Ltd with a revised target price of Rs 1,190 (earlier Rs 1,140), factoring in a rollover to Q3FY28E and a ~4% trim to FY27E–FY28E earnings. Strong traction in quartz and stainless-steel sinks, upcoming capacity ex...
Wonderla Holidays: Chennai Takes The Baton As Mature Parks Plateau - Company Update
We upgrade Wonderla Holidays to BUY from HOLD, as we revise earnings estimates upward by ~5% and roll forward our valuation to Q3FY28E. The company continued to deliver ARPU-led growth at mature parks during the quarter, while footfall growth remaine...
Rashi Peripherals Ltd: Stellar quarter - Company Update
We retain "BUY" rating and raise our target price to Rs. 610 (vs Rs 505 earlier). Rashi reported topline growth of 42.6% YoY in a seasonally weak quarter, on the back of strong sales volume & prices across PES segment (56% of revenue) and LIT (44...
Triveni Turbine: Worst likely behind, recovery pending - Company update
We upgrade our rating on Triveni Turbine to BUY, supported by improving execution visibility and a gradual recovery in order inflows. While new applications such as CO₂-based energy storage, MVR, and turbine servicing are likely to be incrementally...
The Anup Engineering: Through the Trough, Recovery in the offing - Company Update
We upgrade our rating on The Anup Engineering to BUY (previously HOLD) and revise our target price to Rs 2,515. The company is not yet out of the woods, with the market awaiting clear signs of a recovery in order inflows. That said, we believe the wo...
Saksoft Ltd: Temporary headwinds, normalization in sight - Company Update
We maintain our "BUY" rating with a revised target price of Rs 285 (vs 325). Saksoft delivered weak results – a) topline growth saw a de-growth of 3% despite the favourable currency mix, b) Top 2 clients have cut spends in Q3, the pain co...
Mayur Uniquoters: Riding export momentum - Company Update
We maintain our BUY rating on Mayur Uniquoters with a revised target price of Rs. 825 (earlier Rs. 770), as we roll forward our valuation to Q3 FY28E and upgrade our FY27E/FY28E earnings estimates by ~4%. The company delivered a robust operating perf...
TD Power Systems: Global demand fuelling growth visibility - Company Update
We upgrade TD Power to BUY / revise our target price upwards to Rs 875 (vs. Rs 840 earlier). Q3-FY26 results were a tad lower than our expectations and reflect timing issues rather than demand or competitive weakness. Going ahead, the Tumkur facility...
SJS Enterprises Ltd - Premiumisation and Export-led Outperformance - Company Update
We revise our target price on SJS Enterprises upwards to Rs2,190 to account for an increase in revenue/ margin estimates, and valuation roll-forward to Dec’27E. SJS delivered another quarter of strong industry outperformance, with record profitabil...
Sundram Fasteners Ltd.: Exports spoil the show - Company Update
We lower target price to Rs 1035 (previously Rs 1085) and maintain Accumulate rating for Sundram Fasteners Ltd. (SFL). We downward revise our multiple to account for extended weakness on exports including delay in EV order to North America, in turn l...
ASK Automotive Ltd. - Firing on all cylinders - Company Update
We upgrade ASK Automotive to BUY rating on attractive valuation and increase our TP to Rs590 (Rs525 previously). The increase in TP is largely driven by valuation rollover. ASK delivered a strong Q3, materially ahead of our expectations, led by broad...
Kirloskar Ferrous Ind. - Casting and tubes outperform, spreads spoil the show | Company Update
We lower our target price to Rs 620 (previously Rs690) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for weak commodity spreads and realization across end products . KFIL’s 2QFY26 perfor...
IFGL Refractories Ltd. - Domestic focus continues to payoff; overseas improving gradually | Company Update
We decrease target price to Rs 280 (previously Rs 300) but maintain BUY rating. The change in TP is mainly due to cut of earnings estimates. IFGL delivered another quarter of strong standalone growth as its domestic-focused strategy continues to gain...
Venus Pipes & Tubes Ltd. - Export and welded drives confidence | Company Update
We increase Target Price to Rs 2040 (previously Rs1,950) and retain BUY for Venus Pipes & Tubes (VENUS) due to attractive valuations. Increase in TP is primarily due to valuation roll forward. Revenue in 2QFY26 was strong, supported by a sharp re...
ESAB India - Encouraging quarter; growth in focus | Company Update
We retain Buy on ESAB India with TP revised upwards to Rs 6,850 (vs Rs 6,554 earlier) on valuation rollover. The company delivered a strong quarter, with overall growth hinting at signs of recovery supported by margin gains. ESAB continues to o...
The Anup Engineering - All eyes on cash conversion | Company Update
We maintain our HOLD rating on Anup Engineering but increase TP to Rs 2,475 (vs Rs 2,375 earlier) considering steady operational performance and an unchanged growth outlook coupled with valuation rollover. The impact from higher taxes was anticipated...
Rashi Peripherals Ltd – Turns cashflow positive
We retain "BUY" rating with a Target Price of Rs. 505 (vs Rs 525 earlier). Rashi Peripherals ltd reported decent topline growth, on the back of strong sales from the PES segment (PCs, Desktops). Our dealer checks suggest demand is improving for AI-en...
Wonderla Holidays - Chennai on Track; Expansion Visibility Low | MNCL Research Update
We reiterate our HOLD rating on Wonderla Holidays Ltd while revising our target multiple downwards to 18x (from ~20x) and rolling forward our valuation to Q2FY28E. In a seasonally weak quarter, the company delivered a better-than-expected topline, pr...
R Systems International - Strong growth tempered by higher SG&A & RSU costs | MNCL Research Update
We maintain our "BUY" and retain our target price to Rs 620. R Systems delivered higher than expected topline growth (7.9% vs our estimate of 3.5% in INR terms). EBITDA was in line with our estimates / margins dipped 70bps QoQ on the back of higher R...
SJS Enterprises Ltd - Designed to outperform | MNCL Research Update
We revise our target price on SJS Enterprises upwards to Rs1,930 to account for an increase in revenue/ margin estimates, valuation roll-forward to Sept’27E and target multiple expansion. SJS delivered another quarter of strong industry outperforma...
Channel checks - Opalware and Glassware - Borosil Sets the Benchmark in Opalware Retail
We conducted channel checks across key markets in Western and Northern India to gauge demand trends (qualitative aspects) in the Opalware and Glassware categories. We also analysed balance sheet / profitability trends (quantitative parts) across key ...
Goldiam International - LGD Momentum builds; ORIGEM scaling | Company Update
We reiterate our BUY rating on Goldiam International with a target price of Rs. Rs.470. Despite near-term uncertainty around U.S. tariff implications, the company has delivered an exemplary performance driven by robust topline growth and increasing w...
ASK Automotive Ltd – Meets Expectations; ALPS & Aftermarket to Drive Growth | MNCL Research Company Update
We retain ACCUMULATE on ASK Automotive while lowering our target price to Rs 525. The lowering of TP follows downward revision in our revenue and margin estimates, partially offset by valuation rollover. ASK delivered a strong Q2, broadly in line wit...
Sundram Fasteners Ltd. - Steady Domestic Momentum Offsets Export Weakness; upgrade to Accumulate - Company Update
We increase target price to Rs 1085 (previously Rs1030) and upgrade our rating to Accumulate for Sundram Fasteners Ltd. (SFL) due to steep correction in share price. Increase in TP is mainly due to valuation roll forward. SFL’s performance in 2QFY2...
JNK India Ltd – End of Overhang, Execution to Drive Growth | Q2FY26
Our interaction with JNK India led to the following conclusions: JNK India’s legacy low-margin orders (NRL, IOCL) delayed by site and client issues are expected to conclude largely by Q2FY26, with minor spillover into Q3FY26. From Q3FY26, high-marg...
Ratnamani Metals and Tubes Ltd. - Subsidiaries outperform | Company Update
We increase target price to Rs 2710 (previously 2690) and upgrade to Accumulate rating. Increase in target price is due to valuation roll forward. In 2QFY26, the core pipes business saw modest growth as strong offtake was offset by weak realizations....
