Why is Kirloskar Oil Engines Ltd ?
1
Healthy long term growth as Operating profit has grown by an annual rate 42.41%
2
Positive results in Sep 25
- OPERATING PROFIT TO INTEREST(Q) Highest at 2.81 times
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 1,008.03 cr
- NET SALES(Q) Highest at Rs 1,948.38 cr
3
With ROCE of 14.8, it has a Fair valuation with a 3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 15.49%, its profits have fallen by -7%
4
High Institutional Holdings at 36.33%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.65% over the previous quarter.
5
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
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, Medium Return
Absolute
Risk Adjusted
Volatility
Kirloskar Oil
15.39%
0.36
43.40%
Sensex
5.61%
0.47
11.75%
Quality key factors
Factor
Value
Sales Growth (5y)
18.88%
EBIT Growth (5y)
42.41%
EBIT to Interest (avg)
3.06
Debt to EBITDA (avg)
4.02
Net Debt to Equity (avg)
1.24
Sales to Capital Employed (avg)
0.93
Tax Ratio
27.47%
Dividend Payout Ratio
19.29%
Pledged Shares
0
Institutional Holding
36.33%
ROCE (avg)
14.14%
ROE (avg)
14.23%
Valuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
49
Price to Book Value
5.51
EV to EBIT
20.37
EV to EBITDA
17.84
EV to Capital Employed
3.02
EV to Sales
3.29
PEG Ratio
NA
Dividend Yield
0.51%
ROCE (Latest)
14.82%
ROE (Latest)
14.47%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
13What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.81 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 1,008.03 cr
NET SALES(Q)
Highest at Rs 1,948.38 cr
PBDIT(Q)
Highest at Rs 381.75 cr.
PBT LESS OI(Q)
Highest at Rs 203.75 cr.
PAT(Q)
Highest at Rs 162.46 cr.
EPS(Q)
Highest at Rs 11.18
-3What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.48 times
DPR(Y)
Lowest at 19.29%
Loading Valuation Snapshot...
Here's what is working for Kirloskar Oil
Operating Profit to Interest - Quarterly
Highest at 2.81 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 203.75 cr has Grown at 57.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 129.05 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 162.46 cr has Grown at 45.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 111.82 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 1,948.38 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 1,948.38 cr has Grown at 20.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,617.85 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 381.75 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 203.75 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 162.46 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 11.18
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 1,008.03 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Kirloskar Oil
Debtors Turnover Ratio- Half Yearly
Lowest at 8.48 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 19.29%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






