One of the engineering stocks engaged in designing, manufacturing, and commissioning customized equipment and systems for critical applications. The stock has been in focus after entering into an agreement for a 100 percent acquisition with Monga Strayfield Private Limited and securing an order of $15 million from Jessa for rotary dryers in OCP Morocco.
Stock Movements:
With a market capitalization of Rs. 2,041.08 crores, the shares of Kilburn Engineering Limited were opened at Rs. 473.30 per equity share, rising nearly around 0.71 percent from its previous day’s close price of Rs. 468.90. The stock is currently trading at Rs 472.25 per equity share
What happened:
Kilburn Engineering Limited (KEL) secured its largest single order of $15 million from Jessa for rotary dryers in OCP Morocco. The company also entered into a share purchase agreement with the promoters and shareholders of Monga Strayfield Private Limited to acquire 100% of its paid-up capital, marking a strategic acquisition. The total cost of acquisition is Rs. 123 crore.
Future Plans:
KEL is strategically expanding through targeted acquisitions like the Ambernath facility and the pending Monga Strayfield purchase, which will diversify its portfolio. The company aims to achieve Rs. 500 crores in FY25 and Rs. 700-750 crores by FY26, backed by a substantial enquiry pipeline exceeding Rs. 2,000 crores.
Order:
Kilburn Engineering Limited (KEL) displayed a robust order book performance. The company’s orders received reached Rs. 2123.3 crore in H1 FY24, while the closing order book stood at Rs. 2991.4 crore for H1 FY25. This strong order book, along with strategic acquisitions, positions KEL to achieve its revenue targets of Rs. 500-750 crores by FY26.
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Products and Services
Kilburn Engineering Limited specializes in advanced drying technology and offers a wide range of products, including dryers, coolers, adsorption systems, oil & gas packages, fabricated equipment, heat transfer systems, material handling systems, centrifugal fans, and tea industry machinery.
The clients are organized into categories such as Petrochemicals, Specialty Chemicals, Carbon Black, Power, Oil & Gas, Pharmaceuticals, Food & FMCG, Fertilizer, Soda Ash, Metals & Minerals, and Mining & Others.
Recent quarter results and ratios:
Kilburn Engineering Limited’s revenue has increased from Rs. 68 crore in Q2 FY24 to Rs. 78 crore in Q2 FY25, which has grown by 14.71 percent YOY. The net profit of Kilburn Engineering Limited has also grown by 40 percent, from Rs. 10 crore in Q2 FY24 to Rs. 14 crore in Q2 FY25.
Kilburn Engineering Limited’s revenue and net profit have grown at a CAGR of 22.29 percent and 68.18 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 28.2 percent and 22.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.26x. Kilburn Engineering Limited’s EPS is to be Rs. 11.3.
Shareholding Pattern:
In September 2024, Kilburn Engineering Limited had a majority stake held by the promoters at 50.82 percent, foreign institutional investors at 0.21 percent, and the public at 48.96 percent.
Company Overview:
Kilburn Engineering Limited is an established Indian company specializing in the design, manufacturing, and marketing of industrial drying systems and equipment. Founded on September 7, 1987, and headquartered in Kolkata, West Bengal, the company operates as a public limited entity and is listed on stock exchanges.
Written By – Nikhil Naik
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