Kirloskar Pneumatic Company (KKPC IN) – Q2FY27 Result Update – Dismal Q2; execution pick up expected in H2FY27 – BUY
Published on 28 Oct 2026
Management has guided of strong double-digit revenue growth while maintaining EBITDA margins of 18–20%, expecting a strong H2 recovery led by higher dispatches from precision engineering and large packages, alongside standard equipment sales. The stock is currently trading at P/E of 20.3x/17.8x on FY28E/FY29E. We roll forward to Sep’28E and value the business at PE of 28x Sep’28E (30x Sep’28E earlier) as we remain watchful on ramp-up of the precision engineering business. We thus arrive at revised TP of INR790 (INR861 earlier) and maintain our ‘BUY’ rating given the recent correction in price.
