Kirloskar Oil Engines Ltd (KIRLOSENG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kirl.Pneumatic

Kirloskar Oil

Elgi Equipments

Cummins India

Ingersoll-Rand

Swaraj Engines

Oswal Pumps

KSB

Kirl. Brothers

Shakti Pumps

Powerica Ltd

Why is Kirloskar Oil Engines Ltd ?

Healthy long term growth as Operating profit has grown by an annual rate 32.61%

With a growth in Net Profit of 42.23%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 14.53%
OPERATING PROFIT TO INTEREST(Q) Highest at 3.13 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 1,250.46 cr

High Institutional Holdings at 37.48%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.82% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 99.45% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Kirloskar Oil should be less than 10%
Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kirloskar Oil for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kirloskar Oil

99.52%

2.45

40.64%

Sensex

-6.4%

-0.49

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.50%

EBIT Growth (5y)

32.61%

EBIT to Interest (avg)

2.65

Debt to EBITDA (avg)

4.18

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

0.90

Tax Ratio

26.25%

Dividend Payout Ratio

19.29%

Pledged Shares

Institutional Holding

37.48%

ROCE (avg)

14.06%

ROE (avg)

14.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.84

EV to EBIT

23.02

EV to EBITDA

20.19

EV to Capital Employed

3.85

EV to Sales

3.71

PEG Ratio

1.46

Dividend Yield

0.38%

ROCE (Latest)

16.73%

ROE (Latest)

16.43%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

ROCE(HY)

Highest at 14.53%

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.13 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,250.46 cr

DEBT-EQUITY RATIO(HY)

Lowest at 1.49 times

NET SALES(Q)

Highest at Rs 2,116.23 cr

PBT LESS OI(Q)

At Rs 206.49 cr has Grown at 27.1% (vs previous 4Q average

PAT(Q)

At Rs 165.58 cr has Grown at 21.5% (vs previous 4Q average

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.08 times

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Here's what is working for Kirloskar Oil

Operating Profit to Interest - Quarterly

Highest at 3.13 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 2,116.23 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 206.49 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 206.49 cr has Grown at 27.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 162.41 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 165.58 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 165.58 cr has Grown at 21.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 136.31 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,250.46 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 1.49 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Kirloskar Oil

Debtors Turnover Ratio- Half Yearly

Lowest at 8.08 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio