Shares of Kirloskar Ferrous Industries gain more than 2% on July 5

Shares of Kirloskar Ferrous Industries gain more than 2% on July 5

by 5paisa Research Team Last Updated: 2022-07-05T13:13:39+05:30

The company announced the recommencement of operations of Mini Blast Furnace II at the Koppal plant.

Kirloskar Ferrous Industries Limited (KFIL), incorporated in 1991, the company is engaged in the business of manufacturing pig iron and ferrous casting. KFIL is one of the leading companies in foundry-grade pig iron manufacturing as well as ferrous casting in India. The company's pig iron division has a market share of 40-42% while its castings division has a market share of 21%. KFIL was formed to transform the high-quality pig iron and grey iron casting industry. These can be largely construed as two verticals of the company.

The company is consistently gaining market share in the pig iron segment. Its pig iron is used to make a variety of cast iron that finds critical use in a wide range of industries. Its innovations in the foundry space have made it leaders in the category. KFIL supplies its pig iron to various industries such as automotive, capital goods, machine tools, iron & steel, pumps, and pipes, among others.

In a press release, issued on 4 July 2022, the company announced that the upgradation of the Mini Blast Furnace II ('MBF-11') of the Company situated at the Koppal plant, Karnataka has been completed and the operations of MBF-11 have resumed from 4 July 2022. After the upgrade of MBF-11, the manufacturing capacity of pig iron in respect of MBF-11 has increased from 1,80,000 metric tonnes per annum to 2,17,600 metric tonnes per annum and consequently, the total manufacturing capacity of pig iron at the company level has increased to 6,09,000 metric tonnes per annum.

The stock is trading at a TTM PE of 6.46x as compared to the industry PE of 10.60x. The company delivered an RoE of 30.39%. Similarly, the RoCE stood at 32%.

The shares of Kirloskar Ferrous Industries Ltd have a 52-week high of Rs 313.75 and a 52-week low of Rs 183.75. At 11:48 am, the scrip is trading at Rs 192.95, witnessing a gain of 2.01%.

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