Yesterday, the changes to the German selection indices were implemented. Especially in the small cap index SDAX, a lot has changed.

After Mutares, I would like to introduce you to another SDAX riser today, which may not be familiar to every investor: KSB.

KSB: Leading pump manufacturer I would like to introduce you to the company first. The traditional company founded in 1871 and based in Frankenthal is one of the world’s leading manufacturers of high-quality pumps, valves and associated systems.

The products are used in building technology, process technology, water treatment, water transport, energy conversion and solid transport. In addition, the company provides services and designs complete hydraulic systems for the transport of water and wastewater.

KSB employs around 15,700 employees and is represented on all five continents with its own sales companies, production sites and service operations.

Change to the Prime Standard Until recently, KSB was still listed in the so-called „General Standard“ of the German Stock Exchange and thus had no chance of being included in a selection index. As a result, the company flew under the radar of many investors.

That should now change. The management wants to increase its investor relations activities. With the move to the more strongly regulated Prime Standard, the way was clear for inclusion in the Small Cap SDAX.

KSB before another record year With the exception of the Corona year 2020, KSB has slowly but steadily grown in recent years. After the record year 2022, the company is on course this year as well. In the first nine months, sales rose 16% to 2.11 billion euros. Order intake increased 4% to 2.33 billion euros.

The forecast for the full year, raised in July, was confirmed. Sales are expected to increase by up to 15% to 2.8 to 2.95 billion euros. Operating profit before interest and taxes (EBIT) is expected to increase by up to 36% to 210 to 230 million euros.

Uptrend before the continuation The valuation is extremely favorable with a price-earnings ratio of 7 based on the 2023 estimates. The chances for further price increases are good. The chart technique is positive and signals an intact uptrend.

After a brief setback, the positive development should continue. If the annual high of 606 euros is exceeded, further potential opens up in the medium term. Prices in the range of 700 euros should definitely be achievable next year.