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KSB Ltd – Capitalizing on Rising Infra Spends Through Strategic Expansions.


KSB Limited (KSB), established in 1960, is a leading player in the domestic pumps and valves industry with an established track record of over six decades in the industry. It is a subsidiary of KSB SE & Co. KGaA (Headquartered in Germany), which itself is a leading player in the global pumps business.

The company has seven manufacturing facilities (five in Maharashtra and one each in Tamil Nadu and Kerela) and all facilities are fully equipped with designing, testing, fabricating, and quality assurance on all aspects of fluid mechanics in India. The company has a total manufacturing capacity of 150,500 pumps, 186,000 valves and 6,000 tonnes of castings (ferrous and non-ferrous).

KSB Ltd - Capitalizing on Rising Infra Spends Through Strategic Expansions.

In CY23, the pumps segment contributed ~84% of the revenues, while the balance came from the valves segment. In terms of geographical mix, ~84% was from domestic markets while ~16% was from exports.

India’s ever-growing investments in infrastructure across sectors such as housing, irrigation, sanitation, drinking water, hospitality, and real estate, as well as in industries like refineries, petrochemicals, pharmaceuticals, chemicals, water treatment, power, steel, and cement, are poised to benefit the Indian pumps and valves industry. As a leading player in this sector, KSB is well-positioned to capitalize on this growth, leveraging the increasing capital expenditures to expand its market presence and enhance its business prospects.

Strong Distribution & Marquee Client Base

KSB Ltd - Capitalizing on Rising Infra Spends Through Strategic Expansions.

*Source: KSB’s Q4 CY22 Investor Presentation 

Along with these manufacturing locations across India, the company has a wide distribution network comprising of 4 zonal offices, 14 branch offices, 1000+ authorized dealers, 6 service stations, 200+ authorized service centers and 20 godowns.

KSB’s clientele consists of marquee names like BHEL, Indian Oil Corp, Siemens, Thermax, NTPC, ISGEC, Megha Engineering, Larsen & Toubro, etc.

Expanding Product Portfolio

KSB continues to strategically broaden its market share and strengthen its presence, both in its existing markets and by entering new segments. The company has introduced a range of new products tailored for sectors such as firefighting, railways, wastewater management, life sciences, navy, and marine.

In CY22, KSB took a significant step by localizing the manufacturing of pumps for locomotives and railways in India, a function previously managed by its German parent company. This move not only enhances its manufacturing capabilities but also aligns with the ‘Make in India’ initiative.

Additionally, KSB is focused on expanding its aftermarket business, aiming to increase its revenue contribution from this segment from 9% in CY22 to around 20% in the near term.

As part of this strategy, KSB acquired the technology from Bharat Pumps and Compressors (BP & CL). This acquisition enables KSB to not only continue its core business of selling pumps and valves but also to significantly enhance its service offerings by providing spare parts and maintenance services, thereby broadening its customer support capabilities.

Technological Support

KSB leverages advanced technology transferred from its parent company, KSB SE & Co. KGaA, which includes advanced designs for both standard and engineering pumps. This technological edge is crucial in securing orders from highly specialized sectors such as the nuclear power industry, which is known for its stringent entry barriers and demanding technical requirements.

The company’s ability to innovate and meet complex demands is further highlighted by the development of new product types for sectors including marine, navy, and railways. As of March 2024, KSB’s management reported having substantial orders worth Rs 1,000 Cr from the nuclear business alone.

KSB’s technical strengths are also evident from the order it received from Siemens to supply pumps  to be used in locomotives for the Indian Railways, which were earlier being manufactured by its parent company.

Financials at a Glance

KSB Ltd - Capitalizing on Rising Infra Spends Through Strategic Expansions.*Click on the image to enlarge.

Over the past four years (CY19-CY23), KSB has achieved consistent revenue growth at ~15% CAGR. During this period, the company has also seen an improvement in EBITDA margins, increasing from 11.6% in CY19 to 13.1% in CY23. This improvement in margins has driven EBITDA growth at ~18% CAGR, reaching Rs 294 Cr in CY23.

The positive trends in revenues and margins have also translated into significant PAT growth, which has risen at ~20% CAGR to Rs 209 Cr by CY23.

Additionally, KSB has maintained a strong financial structure, operating with almost no debt. The company’s return ratios have shown marked improvement over the last five years. ROE, for instance, has climbed from approximately 13% in CY19 to around 17% in CY23.


The Promoter & Promoter Group holding stands at a healthy ~67%. Other notable institutions holding the stock include Nippon Life India, Sundaram Mutual Fund, Tata Mutual Fund, Pinebridge Investments, and Bajaj Allianz Life Insurance Company. 

However, institutions only cumulatively hold ~15% of the company’s total holding. The rest (~18%) lies with the public.

Current Outlook & Valuation

KSB performed decently in the recent quarter of Q1 CY24:

  • Revenue for the company increased by ~11% YoY, reaching Rs 544 Cr. 
  • EBITDA saw a growth of ~7% YoY, amounting to Rs 61 Cr, with margins remaining stable.
  • PAT margins also stayed consistent, leading to a PAT increase of ~9% YoY, which resulted in Rs 45 Cr. 
  • According to the management, the current order book stands at Rs 1,175 Cr, not including orders from nuclear projects, which add another Rs 1,000 Cr to the total.

Looking ahead, management is optimistic about the company’s earnings prospects. This positive outlook is primarily driven by the tailwinds from increasing infrastructure capital expenditures, complemented by an expanding product portfolio and a greater focus on the aftermarket business.

In terms of valuation, the stock price has risen by ~90% in the last 1 year and is currently trading at a PE of 70 times, making it an expensive stock and only strong earnings growth can redeem the price. 

The above mentioned infra tailwinds and the strategic moves by KSB creates opportunities for revenue growth. The high promoter holding, near zero debt and relatively low institutional interest makes the company an interesting bet.

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Disclosure: KSB Ltd. is a part of our Capitalmind Premium Portfolios. This article is intended solely for informational purposes and should not be considered as an investment recommendation.

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