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Check Before You Invest : Kirloskar Oil Engines Ltd

BSE: 533293 NSE: KIRLOSENG ISIN: INE146L01010
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Kirloskar Oil Engines Ltd belong to?
Kirloskar Oil Engines Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Kirloskar Oil Engines Ltd a good quality company?
Kirloskar Oil Engines Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Kirloskar Oil Engines Ltd undervalued or overvalued?
Kirloskar Oil Engines Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Kirloskar Oil Engines Ltd a good buy now?
Kirloskar Oil Engines Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd revenue growth is 5.4% for FY-2025 , which is below its 5 year CAGR of 12.2% , indicating slower growth.
Q.2 Gross Profit margin of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.2% for FY-2025 , which is above its 5 year median of 11.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.03% for FY-2025 , which is above its 5 year median of 10.53% indicating increasing margins.
Q.4 Net Profit Margin of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Net Profit Margin is 8.45% for FY-2025 , is above with its 5 year median of 6.57%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.2 11.2
Operating Profit Margin 12.03 10.53
Net Profit Margin 8.45 6.57
Q.5 Return on Asset of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Return on Asset is 10.5(x), which is above its 5 year historical median of 8.51(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Return on equity is 15.47% for FY-2025 , which is above its historical median of 12.11%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Return on capital employed is 19.94% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Cash conversion cycle is 25 , above its historical median of 20 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.24 1.24
ROE 15.47 12.11
ROCE 19.94 15.92
Cash Conversion Cycle 25 20
Q.9 Debt to Equity ratio of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Debt-to-Equity ratio is 0.04 , which is lower with the industry average of 0.17 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Kirloskar Oil Engines Ltd?
Kirloskar Oil Engines Ltd Debt to cash flow from operations is 0.26 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kirloskar Oil Engines Ltd?
Promoters hold 41.08% of the Kirloskar Oil Engines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kirloskar Oil Engines Ltd vs industry peers?
Kirloskar Oil Engines Ltd revenue CAGR is 12.19% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,113.3 101.1
Gross Profit 674.9 9.6
Operating Profit 615 9
Net Profit 432 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.24 0.89
ROE 15.47 11.68
ROCE 19.94 14.29
Cash Conversion Cycle 25.44 101

Valuation & price assessment

Q.1 Stock return of Kirloskar Oil Engines Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 20% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 20% 56.2% 54.5% 104.2%
Q.3 Valuation ratios of Kirloskar Oil Engines Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 45.36 15.23 46.24
Price to Book 6.55 0.97 2.79
Price to Sales 3.67 0.72 2.66
EV to EBITDA 27.12 9.01 15.72

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