Stocks to Buy With Anil Singhvi: This company can generate good returns for investors - what Varinder Bansal said
Varinder Bansal, founder, Omkara Capital said that he is bullish on Capital Goods, Manufacturing and Industrial Sectors. He said that between 2003-2007, Sales and Profit grew at a CAGR of 30%. The market cap of capital goods space went up by 77% during this period. Similarly, Varinder said that KSB Pumps market-cap went up by 75%
Varinder Bansal, founder, Omkara Capital said that he is bullish on Capital Goods, Manufacturing and Industrial Sectors. He said that between 2003-2007, Sales and Profit grew at a CAGR of 30%. The market cap of capital goods space went up by 77% during this period. Similarly, Varinder said that KSB Pumps market-cap went up by 75%. KSB Pumps is one of the world’s leading manufacturers of pumps and industrial valves. KSB is the brand with the greatest technical expertise in pumps and valves, he added.
Varinder said that pumps are required in many sectors, whether it is Energy, Oil & Gas, Water, Waste Treatment, Agriculture, Process Industries, Construction and others. There are different categories of pumps, known as Industrial Pumps.
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Varinder said that this is a German company. It was established in India around 1960. The company has 7 manufacturing plants and the distribution network of the company is extremely strong. KSB Pumps has over 800+ authorized dealers.
Varinder said that KSB Pumps has moved up the ladder, to No 3 position from No 5 or No 6 a few years ago. They have increased their market share over the past few years. Notably, he added that it will become the No 1 manufacturer in India. It has big clients like BHEl, L&T, Siemens, IOC, HPCL, BPCL, Reliance Industries and many more.
Varinder said apart from transferring water, the other important function is to reduce carbon dioxide emission. The company is not dependent on China. KSB Pumps is a net cash company and has Zero Debt. It has 10% – 12% cash of their market cap. The margins of the company stood at 20% in last quarter vs 16% (YoY).
Varinder said that the Order book of the company is Rs 2000 cr and sales is Rs 1200 cr - 1300 cr. The margins of the company are much better than the peers. The stock is not expensive at current levels. Capex of the company is largely done and the Balance sheet of the company is extremely strong.
Varinder said that the company is expecting good orders going forward as well and the product range of the company is extremely strong.
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