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

Elgi Equipments

Cummins India

Kirloskar Oil

Kirl.Pneumatic

Kirl. Brothers

Ingersoll-Rand

Greaves Cotton

Swaraj Engines

Powerica Ltd

Shakti Pumps

KSB

Why is Kirloskar Oil Engines Ltd ?

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

Flat results in Jun 26

PAT(Q) At Rs 113.71 cr has Fallen at -23.5% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Lowest at 8.08 times
PBDIT(Q) Lowest at Rs 300.33 cr.

With ROCE of 16.7, it has a Expensive valuation with a 4.8 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 137.65%, its profits have risen by 27.5% ; the PEG ratio of the company is 2

High Institutional Holdings at 37.33%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 137.65% 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 hold?

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

137.65%

2.97

46.39%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.52%

EBIT Growth (5y)

26.69%

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

26.27%

Dividend Payout Ratio

19.29%

Pledged Shares

Institutional Holding

37.33%

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

8.69

EV to EBIT

29.20

EV to EBITDA

25.36

EV to Capital Employed

4.75

EV to Sales

4.44

PEG Ratio

2.03

Dividend Yield

0.32%

ROCE (Latest)

16.74%

ROE (Latest)

16.43%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

No Trend

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

9What is working for the Company

NET SALES(9M)

At Rs 5,988.36 cr has Grown at 20.62%

PAT(9M)

At Rs 407.67 cr has Grown at 25.17%

ROCE(HY)

Highest at 14.53%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,250.46 cr

DEBT-EQUITY RATIO(HY)

Lowest at 1.49 times

-12What is not working for the Company

PAT(Q)

At Rs 113.71 cr has Fallen at -23.5% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.08 times

PBDIT(Q)

Lowest at Rs 300.33 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 15.02%

PBT LESS OI(Q)

Lowest at Rs 135.86 cr.

Loading Valuation Snapshot...

Here's what is working for Kirloskar Oil

Net Sales - Nine Monthly

At Rs 5,988.36 cr has Grown at 20.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (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

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 135.86 cr has Fallen at -24.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 178.71 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 113.71 cr has Fallen at -23.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 148.70 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

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

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 300.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 15.02%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 135.86 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)