This capital goods stock delivered over 162% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 2.6 lakh today.

Kirloskar Oil Engines Ltd (KOEL), an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 150.70 on 5th April 2022 to Rs 395 on 5th April 2023, an increase of 162% in the one-year holding period.

Recent performance highlights

In the recent quarter Q3FY23, on a consolidated basis, the company’s net profit increased by 169.85% YoY to Rs 68.19 crore. The company’s net revenue increased by 19.50% YoY to Rs 1000.13 from Rs 836.91 crore.

The company is currently trading at a PE of 17.8X against the industry PE of 27.3x. In FY22, the company delivered an ROE & ROCE of 8.16% and 9.60%, respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 5714 crore.

Company Profile

KOEL, one of the flagship companies of the Kirloskar group, manufactures and services diesel engines and diesel generator sets. The company also makes diesel, petrol and kerosene-based pump sets. It has manufacturing units in Pune, Kagal, and Nashik. The company caters to the agriculture, power generation, and industrial sectors.

Growth Drivers 

KOEL develops and offers indigenous engines for agriculture, Genset, and industrial off-highway equipment segments. Their range of products includes 2.5HP to 740HP engines to diesel gensets with a power output of 5kVA to 1,500kVA.

In FY22, the company launched a High-Efficiency 3-Phase L.V. Electric Motor. In addition, it introduced BS-IV engines in the industrial domain and the Organic Waste Composter (Kirloskar i-Land), the Company also released new products in the Power generation market, comprising the K4300 and R550 series.

Share price movements 

Today, the share of KOEL opened at Rs 396.90 and has touched a high and low of Rs 399.75 and Rs 392.25, respectively. So far 18126 shares have been traded on the bourses.

At the time of writing, the shares of Kirloskar Oil Engines Ltd were trading at Rs 393.15, a decrease of 0.94% from the previous day’s closing price of Rs 396.90 on BSE. The stock has a 52-week high and low of Rs 408.05 and Rs 124 respectively on BSE.