Bulk Deal Alert: Kisan Mouldings Jumps 4% as Promoter Buys 6 Lakh Shares
Kisan Mouldings Jumps : In a significant bulk deal, the shares of Kisan Mouldings Limited, one of India’s largest plastics processing companies, surged 4% in early trading after its promoter, Apollo Pipes, acquired an additional 6,00,000 equity shares in the company. The transaction has drawn strong investor interest, reflecting confidence in the company’s growth prospects.
Stock Performance and Market Reaction
Despite the initial upward movement, Kisan Mouldings’ stock later traded at ₹47.49 per share, down nearly 3% from its previous close of ₹48.95. The stock has been witnessing increased volatility, influenced by recent buying activity from its promoter.
Currently, the company holds a market capitalization of ₹567.33 crore, positioning it as a small-cap stock in the Indian stock market.
Why is the Stock Rising?
The recent bulk deal by Apollo Pipes has been a major trigger for the stock’s movement. Apollo Pipes purchased 6,00,000 shares at an average price of ₹48.11 per share, increasing its total stake in the company to 53.57% (6.4 crore shares) as of December 2024.
This isn’t the first time the promoter group has increased its stake. Earlier in February, Apollo Pipes had purchased 6 lakh shares at ₹43.03 apiece, indicating strong confidence in the company’s long-term growth potential.
Strong Financial Performance
Kisan Mouldings Limited has demonstrated a remarkable turnaround in its financials. The company’s revenue increased by 6% from ₹66.19 crore in Q3FY24 to ₹70.32 crore in Q3FY25. More impressively, the company swung from a net loss of ₹16.60 crore to a net profit of ₹0.40 crore during the same period.
This turnaround has been fueled by improved operational efficiency, a strong product portfolio, and increasing demand for plastic solutions across industries.
Product Portfolio and Industry Presence
Kisan Mouldings is a diversified player in the plastics industry. Its product offerings include:
✔ CPVC & UPVC Plumbing Systems
✔ SWR Drainage Systems
✔ Drip and Sprinkler Irrigation Solutions
✔ Rainwater Harvesting Solutions
✔ Underground, Conduit, HDPE, and Submersible Pipes
✔ Molded Furniture, Fittings, Solvent Cement, and Rubber Lubricants
With manufacturing facilities across Maharashtra, Madhya Pradesh, and Dadra & Nagar Haveli, the company processes 20,000–40,000 MT of polymer annually.
Key Clients & Industry Presence
Kisan Mouldings serves reputed names across various industries, including:
🏗 Construction & Infrastructure – Hiranandani, Kalpataru, Lokhandwala Developers
🏭 Industrial & Petrochemicals – Indian Petrochemicals, Voltas, Great Eastern Shipping
🔩 Steel & Engineering – Lloyds Steel, B.R. Shirke Construction
Financial Ratios & Valuation
The company’s key financial metrics reflect its evolving fundamentals:
| Metric | Value |
|---|---|
| Market Cap | ₹547 Cr. |
| Current Price | ₹45.8 |
| 52-Week High/Low | ₹93.5 / ₹38.9 |
| Stock P/E | 77.2 |
| Book Value | ₹17.2 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | -17.2% |
| Return on Equity (ROE) | -41.2% |
| Face Value | ₹10.0 |
| Promoter Holding | 65.6% |
| Debt-to-Equity Ratio | 0.11 |
| Price-to-Earnings Ratio | 77.2 |
| Pledged Percentage | 0.00% |
| QoQ Profit Growth | 185% |
| Quarterly Profit Variance | 102% |
| Industry PE | 27.7 |
| Graham Number | ₹54.8 |
| Intrinsic Value | ₹32.6 |
| RSI (Relative Strength Index) | 40.5 |
| Earnings Per Share (EPS) | ₹7.77 |
| Number of Equity Shares | 12.0 Cr. |
| PEG Ratio | — |
| 200-Day Moving Average (DMA) | ₹55.7 |
| 3-Year Free Cash Flow | ₹58.7 Cr. |
| Latest Free Cash Flow | ₹16.1 Cr. |
| Total Debt | ₹22.3 Cr. |
What’s Next for Kisan Mouldings?
- Strong Promoter Confidence: With Apollo Pipes consistently increasing its stake, investors see this as a positive signal for long-term growth.
- Financial Turnaround: The company’s improving revenue and profitability suggest a potential recovery.
- Valuation Concerns: Despite growth, the high P/E ratio (77.2) and negative ROE (-41.2%) indicate that the stock is still priced optimistically, requiring caution.
- Industry Growth: With rising demand for plastic-based infrastructure solutions, Kisan Mouldings is well-positioned to benefit.
Conclusion
Kisan Mouldings’ recent 4% rise following the bulk deal highlights renewed investor interest. With a steadily increasing promoter stake, improving financials, and a strong product portfolio, the company appears to be on a growth trajectory. However, given its high valuation and past volatility, investors should analyze the stock carefully before making any investment decisions.
📌 Key Takeaway: Promoter buying is always a strong indicator of confidence, but investors should also look at fundamentals before making their move.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.