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MomentumDeep Value

KSB Ltd: Why Is It Outperforming Nifty 500?

Active
RS +16.3%Average5w Streak

In Week of Mar 28, 2026, KSB Ltd (Pumps) is outperforming Nifty 500 with +16.3% relative strength. Fundamentals: Average. On a 5-week streak.

PE: Mid ContractionStrong Opportunity

What's Happening

💎PE falling while earnings hold — value emerging
📊Debt increased 67% YoY — leverage rising
🌐FII stake decreased 0.8% this quarter
🏛️DII accumulation — stake up 1.3%
💰Trading 52% above estimated fair value — significant premium

Earnings Acceleration Triggers

1. Margin expansion to 16.53% (highest in 8 quarters)
OngoingHIGH
2. Zero-debt balance sheet enabling strategic investments
FY26-FY27MEDIUM
3. Revenue growth acceleration to highest level in 8 quarters
Next 2 quartersHIGH

Key Risks

1. Valuation premium requiring sustained growth
MEDIUM

Key Numbers

PAT Growth YoY
+11%
Stable
Revenue YoY
+8%
Stable
Operating Margin
17.0%
+300 bps YoY
PE Ratio
48.0
Current Price
₹796
Dividend Yield
0.50%
Fundamental Score
47/100
Average
3Y PAT CAGR
+14%
Market Cap
13.9K Cr
Valuation
Significantly Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

Why Are KSB Ltd's Earnings Accelerating?

Based on Q3 FY26 earnings • Updated Feb 28, 2026

Margin expansion to 16.53% (highest in 8 quarters)

Expected: OngoingHIGH confidence+₹50 Cr revenue

What: 348 bps QoQ margin expansion adding ₹25 cr to EBITDA on ₹784 cr revenue

Impact: +₹50 Cr revenue

“Operating profit (excluding other income) expanded to ₹129.60 crores with margins touching 16.53%, the highest level since June 2024.”

Zero-debt balance sheet enabling strategic investments

Expected: FY26-FY27MEDIUM confidence

What: Net cash position with negative D/E of -0.20 allowing for capex without interest burden

“KSB operates with zero long-term debt, maintaining a net cash position that translates to a negative net debt-to-equity ratio of -0.20.”

Revenue growth acceleration to highest level in 8 quarters

Expected: Next 2 quartersHIGH confidence+₹75 Cr revenue

What: ₹784 cr revenue representing 20.69% QoQ growth creating operating leverage

Impact: +₹75 Cr revenue

“The quarterly revenue figure represents the highest level achieved in at least the past eight quarters, surpassing the previous peak of ₹726.40 crores recorded in December 2024.”

What Are the Key Risks for KSB Ltd?

Earnings deceleration risks from management commentary

Valuation premium requiring sustained growth

MEDIUM

Trigger: Growth slowdown or margin plateau

Impact: -200 bps margin impact

Management view: Fair value estimate suggests 15% downside from current levels based on 40x earnings multiple on FY2026 estimated EPS of ₹17.

Monitor: Q4 margin trajectory

What Is KSB Ltd's Management Saying?

Key quotes from recent conference calls

“Operating profit (excluding other income) expanded to ₹129.60 crores with margins touching 16.53%, the highest level since June 2024. — Management”
“The quarterly revenue figure represents the highest level achieved in at least the past eight quarters, surpassing the previous peak of ₹726.40 crores recorded in December 2024. — Management”
“KSB operates with zero long-term debt, maintaining a net cash position that translates to a negative net debt-to-equity ratio of -0.20. — Management”

What Is KSB Ltd's Management Guidance?

Forward-looking targets from management for Next 2-4 quarters

Management Tone: CAUTIOUS

Key Milestones

• Maintain OPM above 16%

• Continue revenue growth momentum

• Deploy net cash position strategically

How Fast Is KSB Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+8%+14%Stable
PAT (Net Profit)+11%+14%Stable
OPM17.0%+300 bpsStable

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 28, 2026.

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Frequently Asked Questions: KSB Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were KSB Ltd's latest quarterly results?

KSB Ltd's latest quarterly results (Dec 2025) show

  • PAT Growth YoY: +11.0% (stable)
  • Revenue Growth YoY: +8.0%
  • Operating Margin: 17.0% (stable)

Is KSB Ltd's profit growing or declining?

KSB Ltd's profit is growing with an stable trend.

  • PAT Growth YoY: +11.0% (latest quarter)
  • PAT Growth QoQ: +19.1% (sequential)
  • 3-Year PAT CAGR: +13.8%
  • Trend: Stable — consistent growth pattern

What is KSB Ltd's revenue growth trend?

KSB Ltd's revenue growth trend is stable.

  • Revenue Growth YoY: +8.0%
  • Revenue Growth QoQ: +20.6% (sequential)
  • 3-Year Revenue CAGR: +13.9%

How is KSB Ltd's operating margin trending?

KSB Ltd's operating margin is stable.

  • Current OPM: 17.0%
  • OPM Change YoY: +3.0% basis points
  • OPM Change QoQ: +4.0% basis points

What is KSB Ltd's 3-year profit and revenue CAGR?

KSB Ltd's long-term compounding rates

  • 3-Year Profit CAGR: +13.8%
  • 3-Year Revenue CAGR: +13.9%

Is KSB Ltd's growth accelerating or decelerating?

KSB Ltd's earnings growth is stable with mixed signals on a sequential basis.

  • YoY Acceleration: +1.3% bps
  • Sequential Acceleration: +22.0% bps

What is KSB Ltd's trailing twelve month (TTM) performance?

KSB Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹271 Cr
  • TTM PAT Growth: +9.3% YoY
  • TTM Revenue: ₹3,000 Cr
  • TTM Revenue Growth: +6.5% YoY
  • TTM Operating Margin: 14.0%

Is KSB Ltd overvalued or undervalued?

KSB Ltd appears significantly overvalued based on our fair value analysis.

  • Valuation Signal: Significantly Overvalued
  • Current PE: 48.0x
  • Price-to-Book: 8.3x

What is KSB Ltd's current PE ratio?

KSB Ltd's current PE ratio is 48.0x.

  • Current PE: 48.0x
  • Market Cap: 13.9K Cr
  • Dividend Yield: 0.50%

How does KSB Ltd's valuation compare to its history?

KSB Ltd's current PE is 48.0x.

  • Current PE: 48.0x
  • Valuation Assessment: Significantly Overvalued

What is KSB Ltd's price-to-book ratio?

KSB Ltd's price-to-book ratio is 8.3x.

  • Price-to-Book (P/B): 8.3x
  • Book Value per Share: ₹97
  • Current Price: ₹796

Is KSB Ltd a fundamentally strong company?

KSB Ltd is rated Average with a fundamental score of 46.61/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: +8.0% (10% weight)
  • PAT Growth YoY: +11.0% (10% weight)
  • PAT Growth QoQ: +19.1% (10% weight)
  • Margins stable (10% weight)

Is KSB Ltd debt free?

KSB Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹5 Cr

What is KSB Ltd's return on equity (ROE) and ROCE?

KSB Ltd's return ratios over recent years

  • Dec 2023: ROCE 23.0%
  • Dec 2024: ROCE 24.0%
  • Dec 2025: ROCE 25.0%

Is KSB Ltd's cash flow positive?

KSB Ltd's operating cash flow is positive (Dec 2025).

  • Cash from Operations (CFO): ₹93 Cr
  • Free Cash Flow (FCF): ₹143 Cr
  • CFO/PAT Ratio: 34% (weak cash conversion)

What is KSB Ltd's dividend yield?

KSB Ltd's current dividend yield is 0.50%.

  • Dividend Yield: 0.50%
  • Current Price: ₹796

Who holds KSB Ltd shares — promoters, FII, DII?

KSB Ltd's shareholding pattern (Dec 2025)

  • Promoters: 69.8%
  • FII (Foreign): 4.5%
  • DII (Domestic): 11.9%
  • Public: 13.8%

Is promoter holding increasing or decreasing in KSB Ltd?

KSB Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 69.8% (Dec 2025)
  • Previous Quarter: 69.8% (Sep 2025)
  • Change: 0.00% (stable)

How long has KSB Ltd been outperforming Nifty 500?

KSB Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.

Is KSB Ltd a new momentum entry or an established outperformer?

KSB Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for KSB Ltd?

KSB Ltd has 3 key growth catalysts identified from recent earnings analysis

  • Margin expansion to 16.53% (highest in 8 quarters)
  • Zero-debt balance sheet enabling strategic investments
  • Revenue growth acceleration to highest level in 8 quarters

What are the key risks in KSB Ltd?

KSB Ltd has 1 key risk worth monitoring

  • Valuation premium requiring sustained growth

What did KSB Ltd's management say in the latest earnings call?

In Q3 FY26, KSB Ltd's management highlighted

  • "Operating profit (excluding other income) expanded to ₹129.60 crores with margins touching 16.53%, the highest level since June 2024. — Management"
  • "The quarterly revenue figure represents the highest level achieved in at least the past eight quarters, surpassing the previous peak of ₹726.40 crores..."
  • "KSB operates with zero long-term debt, maintaining a net cash position that translates to a negative net debt-to-equity ratio of -0.20. — Management"

What is KSB Ltd's management guidance for growth?

KSB Ltd's management has provided the following forward guidance for Next 2-4 quarters

  • Management tone: cautious
  • Milestone: Maintain OPM above 16%
  • Milestone: Continue revenue growth momentum

Is KSB Ltd worth studying for long term investment?

Based on quantitative research signals, here is why KSB Ltd may be worth studying

  • Earnings growing at +11.0% YoY
  • Cash flow is positive — CFO ₹93 Cr

What is the investment thesis for KSB Ltd?

KSB Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Margin expansion to 16.53% (highest in 8 quarters)

Risk Factors (Bear Case)

  • Appears significantly overvalued
  • Key risk: Valuation premium requiring sustained growth

What is the future outlook for KSB Ltd?

KSB Ltd's forward outlook based on current data signals

  • Earnings Trend: stable
  • Revenue Trend: stable
  • Margin Trend: stable
  • Valuation: Significantly Overvalued
  • Key Catalyst: Margin expansion to 16.53% (highest in 8 quarters)
  • Key Risk: Valuation premium requiring sustained growth

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.