KSE Ltd Stock Surges 7% After Posting 1727% YoY Net Profit Growth; Announces Rs. 30 Dividend
KSE Ltd Stock : Stock Price Movement KSE Ltd, a key player in the agribusiness and dairy industry, grabbed investors’ attention after delivering stellar Q3FY25 results. The company’s stock opened at Rs. 2298, marking a 6.66% jump from the previous day’s close, and surged further to touch an intraday high of Rs. 2306.50, reflecting a 7.05% increase. With a market capitalization of Rs. 728 crore, this impressive rally showcases investors’ confidence in the company’s robust financial performance.
Q3FY25 Results: A Remarkable Growth Story
KSE Ltd reported a significant jump in its financial performance for the third quarter of FY25, with key metrics reflecting strong growth:
- Revenue from operations grew by 1.46% YoY, rising from Rs. 406 crore in Q3FY24 to Rs. 411.93 crore in Q3FY25. However, on a quarter-on-quarter (QoQ) basis, revenue declined slightly by 0.5% from Rs. 414 crore in the previous quarter.
- Net profit skyrocketed by an astounding 1727% YoY, soaring from Rs. 1.15 crore in Q3FY24 to Rs. 21.01 crore in Q3FY25.
- QoQ, the company reported a net profit growth of 22.65%, up from Rs. 17.13 crore in Q2FY25.
This massive surge in net profit highlights KSE Ltd’s efficient cost management and strategic business execution.
Segment-Wise Revenue Analysis
KSE Ltd operates in three primary business segments, with animal feed contributing the largest share of revenue:
| Segment | Revenue Contribution (%) |
|---|---|
| Animal Feed | 73.99% |
| Oil Cake Processing | 23.18% |
| Dairy Segment | 2.83% |
The dominance of the animal feed segment in overall revenue showcases KSE Ltd’s strong foothold in the agribusiness sector.
Dividend Declaration and Exceptional Income
To reward its shareholders, the Board of Directors declared an interim dividend of Rs. 30 per equity share, amounting to a total payout of Rs. 9.60 crore. The record date for dividend payment is set for February 18, 2025.
Additionally, the company reported an exceptional income of Rs. 2.51 crore for the nine-month period ending December 31, 2024. This was primarily attributed to an insurance claim for flood-damaged raw materials.
About KSE Ltd
KSE Ltd, formerly known as Kerala Solvent Extractions Limited, was founded in 1963 and is headquartered in Irinjalakuda, Thrissur District, Kerala. The company initially specialized in solvent extraction of coconut oil from oil cakes but later expanded its business into multiple verticals. Today, it operates in three major segments: animal feed, oil cake processing, and dairy products.
Key Financial Ratios and Market Insights
To provide a deeper understanding of KSE Ltd’s financial health, here are some key ratios and valuation metrics:
| Metric | Value |
| Market Cap | Rs. 727 Cr. |
| Current Price | Rs. 2,273 |
| 52-Week High/Low | Rs. 2,990 / 1,550 |
| Stock P/E | 9.91 |
| Book Value | Rs. 779 |
| Dividend Yield | 1.32% |
| ROCE (Return on Capital Employed) | 12.9% |
| ROE (Return on Equity) | 9.24% |
| Debt to Equity | 0.09 |
| Industry P/E | 33.5 |
| Total Debt | Rs. 22.9 Cr. |
| PEG Ratio | 0.69 |
| Intrinsic Value | Rs. 2,350 |
| Graham Number | Rs. 2,032 |
| Piotroski Score | 5.00 |
| Price to Book Value | 2.92 |
| No. of Equity Shares | 0.32 |
| ROIC (Return on Invested Capital) | 11.4% |
Outlook for KSE Ltd
With strong earnings growth, a robust dividend payout, and steady revenue generation from its key segments, KSE Ltd remains well-positioned for future expansion. The company’s prudent financial management and diversified operations indicate resilience in the competitive agribusiness and dairy industry.
Investors looking for a strong mid-cap stock with healthy financials, a stable business model, and consistent dividend payouts may find KSE Ltd an attractive investment opportunity.
Final Thoughts
KSE Ltd’s stunning 1727% YoY profit growth and 7% stock jump demonstrate the company’s ability to navigate challenges while maintaining profitability. With a stable revenue base, minimal debt, and strong returns, the company’s future looks promising, making it a stock to watch in the agribusiness and dairy sector.
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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.