After 2,600% return in 5 years, this multibagger stock is showing 50% fall today; here's why

Kirloskar Pneumatic share ex-split: Mutlibagger stock Kirloskar Pneumatic Company Ltd is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-split, adjusting to the pre-announced corporate action. It had announced stock split for the eligible shareholders, which divided the face value from Rs 2 to Re 1, indicating a sharp downside in their stock price.

"This is to inform you that the company has fixed Tuesday, August 18, 2026 as the record date for determining the shareholders who will be entitled to equity shares of the company, to be issued pursuant to sub-division of an equity share of Rs 2 each into 2 equity shares of Re 1 each," said Kirloskar Pneumatic in the exchange filing.

This means that each share with a face value of Rs 2 each of Kirloskar Pneumatic Company will be split into two shares with a face value Re 1 each. All the eligible shareholders' stockholding shall be doubled but the face value and stock price shall be adjusted in the proportionate basis.

Shares of Kirloskar Pneumatic Company settled at Rs 1,532.40 on Monday and opened at Rs 766.05 on Tuesday, post the adjustment of stock division. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting a 50 per cent-odd fall on the counter.

Post adjustment of stock split, shares of Kirloskar Pneumatic Company dropped more than a per cent to Rs 775.75 on Tuesday, with its total market capitalization below Rs 10,000 crore mark. The stock has tumbled nearly 30 per cent from its adjusted 52-week high at Rs 1,098.90, hit on June 22, 2026. However, the stock is still up over 60 per cent from its adjusted 52-week low at Rs 477.50 hit on March 02, 2026.

Kirloskar Pneumatic designs and manufactures specialized industrial equipment, including air and gas compressors, air conditioning and refrigeration systems, process gas systems, and mechanical power transmission units (like industrial gearboxes). Their products serve sectors like oil and gas, railways, defense, and general manufacturing.

To recall, shares of Kirloskar Pneumatic delivered a bumper 2,600 per cent return in the last five years, while the stock has zoomed nearly five times in the last three years. The stock has jumped nearly 50 per cent in 2026 so far, while it is up 20 per cent in the last one year. However, the stock is down 10 per cent in the last one month.

Kirloskar Pneumatic Company a 21.4 per cent year-on-year (YoY) jump in the standalone net profit at Rs 34.1 crore, while revenue increased 10 per cent YoY to Rs 272 crore in the June 2026 quarter. EBITDA rose 23 per cent YoY to Rs 54 crore, while margins improved nearly 190 basis points to 17.6 per cent. It saw an order book of Rs 300 crore, leaving an order book of Rs 1,853 crore.

Kirloskar Pneumatic expects a recovery in Precision Engineering from Q2FY27 after weak dispatches. Air Compression and Refrigeration Compressors continue to see healthy demand, while Gas Compression opportunities remain encouraging across domestic infrastructure, biogas, hydrogen and coal gasification, said PL Capital.

"The services business is expected to grow 25 per cent, supported by the expanding CGD network, while new products should strengthen long-term growth. We downgrade our rating from ‘buy’ rating to ‘accumulate’ reflecting a cautious stance on near-term order conversion amid the ongoing Middle East conflict, while maintaining our target price of Rs 1,715," it adds.