BUY

⚡ Flash Summary

KSB Pumps Company Limited’s presentation for the Corporate Briefing Session Year 2025 highlights a positive business outlook supported by robust demand indicators and increasing public sector development spending, especially in Punjab’s water and wastewater infrastructure projects. The company has shown significant financial improvement in the nine months ending September 2025, with substantial increases in company order intake, sales, gross profit, and EBIT compared to the same period in 2024. Additionally, export business is scaling up through strategic project wins. The company aims for sustained expansion of its market share, anchored in structured execution and effective communication.

📌 Key Takeaways

• 📈 Company order intake increased by 18.6% to PKR 6,222 million.
• 💰 Sales grew by 25.1% to PKR 4,773 million.
• 📊 Gross profit surged by 47.4% to PKR 1,073 million.
• 💹 EBIT increased by 37.2% to PKR 277 million.
• ✔️ EBIT margin improved from 5.3% to 5.8%.
• ✍️ Order in hand increased by 10.7% to PKR 4,136 million.
• 📉 Financial cost & bank charges decreased from PKR (285) million to PKR (11) million.
• 💸 Earnings per share increased significantly from PKR (4.53) to PKR 7.96.
• 🚀 Maximum share price increased from PKR 172.00 to PKR 214.94.
• 🌍 Export business is scaling gradually with strategic project wins in Australia, Chile, KSA, and Germany.
• 💧 Public sector development spending is accelerating, especially in Punjab’s water and wastewater infrastructure.
• ✔️ Stabilization in interest rates is providing positive momentum to industrial and manufacturing activities.
• 🎯 Sustained expansion of KSB Pakistan’s market share remains a central strategic objective.
• 🗓️ The business outlook for 2025-26 remains highly encouraging, supported by robust demand indicators.

🎯 Investment Thesis

KSB Pumps Company Limited presents a compelling investment opportunity. The company is seeing increased public sector spending, demonstrating significant improvements in financial performance, and has a positive business outlook. The recommendation is BUY based on these factors. The company is actively increasing its international footprint which shows good potential for future earnings.

⚡ Flash Summary

KSB Pumps Company Limited reported a strong operational and financial performance for Q3 2025. The company achieved an order intake of PKR 6,222 million. Profitability improved, with Earnings Before Interest and Tax rising to PKR 257 million, representing a margin of 5.4%, compared to PKR 180 million in the same period of 2024. Export sales reached PKR 1,394 million, contributing to the growth.

📌 Key Takeaways

• 💰 Order intake reached PKR 6,222 million, aligning with targets.
• 📈 EBIT increased to PKR 257 million, a 5.4% margin.
• 🚀 EBIT increased from PKR 180 million in Q3 2024.
• 🌍 Export sales hit PKR 1,394 million in the nine months of 2025.
• 🧾 Receivable days decreased to 98 through better collections.
• 🔄 Inventory turnover increased to 188 days due to strategic reasons.
• ☀️ PKR 34 million saved from an 850 KW solar power plant.
• 🎯 Confident in achieving full-year targets.
• 🌱 Sustainability initiatives contributed to cost optimization.
• 💼 Strong growth in intercompany and international markets.

🎯 Investment Thesis

Given the positive financial results and strong growth trajectory, I recommend a BUY rating for KSB Pumps. The company’s focus on sustainability, cost optimization, and export growth makes it an attractive investment. The price target will need to be based on a model with sector valuation. Time horizon would be Medium Term.