CMP: 513

Kirloskar Pneumatic Company Limited manufactures and distributes gas and air compressors and industrial, marine & windmill gear boxes. The Company also produces air conditioning and refrigeration equipment.

Kirloskar Pneumatic is a decent bet in small cap space. Its currently trading at a P/E of less than 10 with good dividend yields of 2.35% in the last 12 months. Minimal liabilities. Revenues have steadily picked up from 356 Crores to 491 Crores in the last 5 years. Profits have been stagnant at around 40 Crores for the last 5 years. Both Revenues and Profits have spiked up in the last 2 quarters by more than 100% year over year. NPM has picked up in recent quarters to 12% from 9% in FY11. Buy and hold till the growth continues in profits in upcoming quarters.