- Date : 21/04/2023
- Read: 4 mins
Looking for an investment opportunity that can double your wealth in just a year? Discover Kirloskar Oil Engines' impressive growth, skyrocketing 221% from its 52-week low. Read this article to know more.
Kirloskar Oil Engines Limited (KOEL) is a leading engineering company in India with a strong presence in the global market. It specialises in manufacturing and supplying diesel engines, generator sets, pumps, pressure washers, and allied products. KOEL is renowned for its innovation, quality and customer service. The company has a wide range of products that meet the needs of various industries. With a presence in more than 50 countries, KOEL is a trusted name in the engineering industry. It is committed to delivering its customers the best products and services while maintaining high safety standards and environmental stewardship. Investors have created substantial wealth due to the company's performance over the past year.
Stock performance in last one year
Over the past twelve months, the stock has experienced a remarkable increase in value, rising from approximately ₹154.55 per share (on 20th April 2022) to its current position of ₹401.5 per share (on 20th April 2023). This impressive growth translates to a whopping return of 159.78%. The returns would seem much better if returns were calculated from 52-week low of ₹124.0 per share (on 20th June 2023). Below is a daily chart from moneycontrol.com showing the one-year journey of Kirloskar Oils from 20th April 2022 to 20th April 2023.
(NOTE FOR EDITOR: I HAVE CHECKED MULTIPLE SITES, THIS SEEMS TO BE BETTER AMONGST OTHERS)
The current price of the Kirloskar Oil share is still 13% less than the all-time high (₹454) achieved by the share on 1st December 2017.
Recent news about the company
In March, the Kulkarni family, who belong to the promoter group of Kirloskar Oil, carried out block deals to sell off 18% of their stake in the company for ₹825 crores. Despite the significant size of this sale, the stock price remained unaltered owing to the robust demand from institutional investors.
Kirloskar Oil Engines Ltd (KOEL) has partnered with RITES Ltd to explore business opportunities in the export of railway rolling stock, infrastructure, and urban transport for both domestic and overseas markets. KOEL will use its manufacturing acumen, R&D expertise, and strong supply chain network to develop and supply products for RITES customers. RITES, in turn, will provide marketing, design, operation & maintenance support required to tap business opportunities.
The partnership will allow KOEL and RITES to capitalise on each other's expertise and capabilities, potentially leading to significant growth opportunities in the railway rolling stock and urban transport sectors.
Below are some key points; as per the company's Earnings Call Presentation Q3 FY23 (10th February 2023):
- The company wants to grow two times in the next 3 years. The company has outlined its actions in this presentation.
- Segment-wise revenue composition for the current quarter is Power Generation, Industrial, Distribution & aftermarket, and International contributed 47%, 21%, 18% and 14%, respectively.
- During Q3FY23, the company exhibited an exceptional performance, as evidenced by its net profit surging 202% YoY to ₹88 crore.
Kirloskar Oil Engines Ltd (KOEL) has seen impressive growth over the past year, with a 159.78% increase in value. The recent partnership with RITES Ltd is expected to generate significant growth opportunities in the railway rolling stock and urban transport sectors. The company's Q3 FY23 net profit surged 202% YoY to ₹88 crore, and it aims to double its growth in the next three years. Investors should keep an eye on the company's growth plans and monitor the industry trends to make informed investment decisions.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain indep