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Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Kirloskar Oil Engines Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 8:23 am

Market Cap 14,764 Cr.
Current Price 1,017
High / Low 1,450/644
Stock P/E28.6
Book Value 201
Dividend Yield0.59 %
ROCE15.0 %
ROE17.7 %
Face Value 2.00
PEG Ratio1.91

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Kirloskar Oil Engines Ltd

Competitors of Kirloskar Oil Engines Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Swaraj Engines Ltd 3,615 Cr. 2,976 3,470/2,12624.4 2813.19 %51.6 %38.6 % 10.0
Kirloskar Oil Engines Ltd 14,764 Cr. 1,017 1,450/64428.6 2010.59 %15.0 %17.7 % 2.00
Greaves Cotton Ltd 6,893 Cr. 296 320/112 58.40.67 %3.72 %1.62 % 2.00
Cummins India Ltd 89,285 Cr. 3,221 4,172/1,92747.3 2341.18 %35.2 %28.1 % 2.00
Industry Average28,639.25 Cr1,877.5033.43193.601.41%26.38%21.51%4.00

All Competitor Stocks of Kirloskar Oil Engines Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9591,0878211,0011,0181,1821,1911,2281,2201,3841,5431,3051,390
Expenses8389417379049301,0391,0181,0481,0281,1961,2771,1031,133
Operating Profit121147849788143173181192188266201257
OPM %13%13%10%10%9%12%15%15%16%14%17%15%18%
Other Income7-167586671178-23
Interest16172022283542475764767481
Depreciation21232625252527262626273031
Profit before tax9110644574091110113117109170105122
Tax %27%26%26%27%27%25%26%27%24%27%26%26%26%
Net Profit667832422968828388791267889
EPS in Rs4.585.402.222.932.124.795.645.796.095.458.675.386.20

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,4642,6743,0553,6263,3793,2964,0225,0245,622
Expenses2,1872,3902,7903,2513,0852,9093,6104,2904,710
Operating Profit277283265376295387412734913
OPM %11%11%9%10%9%12%10%15%16%
Other Income49837263521727293
Interest9312131450106210296
Depreciation111111123948784101105114
Profit before tax205253203331245270232449506
Tax %19%31%33%34%23%27%26%26%
Net Profit165174136220188197171332372
EPS in Rs11.4412.029.6615.1612.8113.4812.0722.9625.70
Dividend Payout %44%42%52%33%31%30%33%22%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)5.45%-21.84%61.76%-14.55%4.79%-13.20%94.15%
Change in YoY Net Profit Growth (%)0.00%-27.29%83.60%-76.31%19.33%-17.99%107.35%

Kirloskar Oil Engines Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:10%
3 Years:21%
TTM:13%
Compounded Profit Growth
10 Years:%
5 Years:19%
3 Years:32%
TTM:39%
Stock Price CAGR
10 Years:14%
5 Years:46%
3 Years:77%
1 Year:53%
Return on Equity
10 Years:%
5 Years:12%
3 Years:14%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:31 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital29292929292929292929
Reserves1,4151,5881,5471,6701,7161,8932,0532,2752,6472,885
Borrowings712142901898491,9653,2444,1425,430
Other Liabilities5195417838078251,0269751,1691,4501,437
Total Liabilities1,9702,1702,5002,5952,7593,7975,0216,7178,2689,782
Fixed Assets475440702663623698721689769931
CWIP2915304178554369293226
Investments791988675711433834738658489675
Other Assets6747271,0931,1801,6262,2103,5195,3026,7187,948
Total Assets1,9702,1702,5002,5952,7593,7975,0216,7178,2689,782

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +99171136192-124-16-1,041-920-469
Cash from Investing Activity +82-1907-38233-465-3-145-109
Cash from Financing Activity +-1762-96-153-435999501,182800
Net Cash Flow6-1648167118-93117223

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow270.00271.00123.00286.00106.00-462.00411.00731.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days232748414549433838
Inventory Days494964496968546467
Days Payable8277916970106807983
Cash Conversion Cycle-10-021214310172322
Working Capital Days821331956479410885
ROCE %13%10%17%12%13%10%13%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters59.44%59.44%59.44%59.44%59.44%59.43%41.25%41.23%41.23%41.22%41.21%41.18%
FIIs6.38%1.33%1.04%1.02%2.64%3.60%6.04%6.17%7.79%9.06%9.77%9.98%
DIIs13.37%16.91%16.70%16.81%13.55%14.66%27.95%28.57%24.28%24.37%25.17%25.42%
Public20.81%22.32%22.82%22.73%24.38%22.31%24.76%24.03%26.69%25.36%23.86%23.40%
No. of Shareholders46,20850,14052,71752,66957,25453,85256,26155,39472,79868,89177,5651,07,323

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Franklin India Flexi Cap Fund3,900,0001.78212.043,571,4292024-12-309.2%
Nippon India Small Cap Fund3,571,4290.52194.183,571,4292024-12-300%
HSBC Value Fund2,762,8361.62150.223,571,4292024-12-30-22.64%
DSP Small Cap Fund2,658,3341.22144.533,571,4292024-12-30-25.57%
Franklin India Smaller Companies Fund2,108,2451.18114.633,571,4292024-12-30-40.97%
Franklin India Taxshield1,800,0001.8797.873,571,4292024-12-30-49.6%
Franklin India Opportunities Fund1,257,8314.5968.393,571,4292024-12-30-64.78%
DSP Tiger Fund1,217,1412.6866.183,571,4292024-12-30-65.92%
Franklin Build India Fund1,119,8473.9160.893,571,4292024-12-30-68.64%
HSBC Multi Cap Fund782,7952.3942.563,571,4292024-12-30-78.08%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)30.5022.9812.0713.4812.81
Diluted EPS (Rs.)30.4622.8812.0713.4812.81
Cash EPS (Rs.)38.4430.0518.8019.4619.03
Book Value[Excl.RevalReserv]/Share (Rs.)183.50159.14143.96132.93120.69
Book Value[Incl.RevalReserv]/Share (Rs.)183.50159.14143.96132.93120.69
Revenue From Operations / Share (Rs.)406.92347.07278.15227.95233.71
PBDIT / Share (Rs.)72.8752.6630.3528.5022.81
PBIT / Share (Rs.)64.6745.4323.3522.7016.77
PBT / Share (Rs.)40.9730.9316.0118.6516.93
Net Profit / Share (Rs.)30.2422.8211.7913.6512.99
NP After MI And SOA / Share (Rs.)30.4822.9612.0713.4812.81
PBDIT Margin (%)17.9015.1710.9112.509.75
PBIT Margin (%)15.8913.088.399.957.17
PBT Margin (%)10.068.915.758.187.24
Net Profit Margin (%)7.436.574.245.985.55
NP After MI And SOA Margin (%)7.496.614.335.915.47
Return on Networth / Equity (%)16.5114.438.3810.1410.61
Return on Capital Employeed (%)19.8115.6510.3912.8712.03
Return On Assets (%)5.334.943.465.126.70
Long Term Debt / Equity (X)0.730.780.510.210.03
Total Debt / Equity (X)1.541.400.930.350.08
Asset Turnover Ratio (%)0.780.980.960.961.14
Current Ratio (X)1.051.361.541.832.25
Quick Ratio (X)0.861.141.331.531.70
Inventory Turnover Ratio (X)4.604.764.573.514.27
Dividend Payout Ratio (NP) (%)8.1910.8833.1411.1231.23
Dividend Payout Ratio (CP) (%)6.468.2720.977.7721.22
Earning Retention Ratio (%)91.8189.1266.8688.8868.77
Cash Earning Retention Ratio (%)93.5491.7379.0392.2378.78
Interest Coverage Ratio (X)3.223.634.148.2223.21
Interest Coverage Ratio (Post Tax) (X)2.382.572.615.1113.06
Enterprise Value (Cr.)16058.098640.883691.552797.801264.79
EV / Net Operating Revenue (X)2.721.720.910.840.37
EV / EBITDA (X)15.2011.348.416.793.84
MarketCap / Net Operating Revenue (X)2.111.130.470.710.37
Retention Ratios (%)91.8089.1166.8588.8768.76
Price / BV (X)4.652.470.911.230.72
Price / Net Operating Revenue (X)2.111.130.470.710.37
EarningsYield0.030.050.090.080.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kirloskar Oil Engines Ltd as of December 31, 2024 is: 1,023.51

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 31, 2024, Kirloskar Oil Engines Ltd is Undervalued by 0.64% compared to the current share price 1,017.00

Intrinsic Value of Kirloskar Oil Engines Ltd as of December 31, 2024 is: 1,176.44

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 31, 2024, Kirloskar Oil Engines Ltd is Undervalued by 15.68% compared to the current share price 1,017.00

Last 5 Year EPS CAGR: 14.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,968.90 cr) compared to borrowings (1,607.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (3.33 cr) and profit (299.33 cr) over the years.
  1. The stock has a low average ROCE of 11.44%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 52.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 16.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kirloskar Oil Engines Ltd:
    1. Net Profit Margin: 7.43%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.81% (Industry Average ROCE: 26.38%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.51% (Industry Average ROE: 21.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.38
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.86
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 28.6 (Industry average Stock P/E: 25.08)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.54
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Kirloskar Oil Engines Ltd. is a Public Limited Listed company incorporated on 12/01/2009 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29100PN2009PLC133351 and registration number is 133351. Currently Company is involved in the business activities of Manufacture of general purpose machinery. Company’s Total Operating Revenue is Rs. 3299.66 Cr. and Equity Capital is Rs. 28.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
EnginesLaxmanrao Kirloskar Road, Khadki, Pune Maharashtra 411003investors@kirloskar.com
http://www.koel.co.in
Management
NamePosition Held
Mr. Atul C KirloskarChairman & Non-Exe.Director
Ms. Gauri KirloskarManaging Director
Mr. Rahul C KirloskarNon Independent Director
Mr. Vinesh Kumar JairathNon Independent Director
Mr. Mahesh R ChhabriaNon Independent Director
Mr. Arvind GoelIndependent Director
Mr. Satish JamdarIndependent Director
Mr. Kandathil Mathew AbrahamIndependent Director
Dr. Shalini SarinIndependent Director
Mr. Yogesh KapurIndependent Director
Mr. Purvi ShethIndependent Director

FAQ

What is the latest intrinsic value of Kirloskar Oil Engines Ltd?

The latest intrinsic value of Kirloskar Oil Engines Ltd as on 31 December 2024 is ₹1023.51, which is 0.64% higher than the current market price of ₹1,017.00. The stock has a market capitalization of 14,764 Cr. and recorded a high/low of 1,450/644 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,885 Cr and total liabilities of ₹9,782 Cr.

What is the Market Cap of Kirloskar Oil Engines Ltd?

The Market Cap of Kirloskar Oil Engines Ltd is 14,764 Cr..

What is the current Stock Price of Kirloskar Oil Engines Ltd as on 31 December 2024?

The current stock price of Kirloskar Oil Engines Ltd as on 31 December 2024 is 1,017.

What is the High / Low of Kirloskar Oil Engines Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Kirloskar Oil Engines Ltd stocks is 1,450/644.

What is the Stock P/E of Kirloskar Oil Engines Ltd?

The Stock P/E of Kirloskar Oil Engines Ltd is 28.6.

What is the Book Value of Kirloskar Oil Engines Ltd?

The Book Value of Kirloskar Oil Engines Ltd is 201.

What is the Dividend Yield of Kirloskar Oil Engines Ltd?

The Dividend Yield of Kirloskar Oil Engines Ltd is 0.59 %.

What is the ROCE of Kirloskar Oil Engines Ltd?

The ROCE of Kirloskar Oil Engines Ltd is 15.0 %.

What is the ROE of Kirloskar Oil Engines Ltd?

The ROE of Kirloskar Oil Engines Ltd is 17.7 %.

What is the Face Value of Kirloskar Oil Engines Ltd?

The Face Value of Kirloskar Oil Engines Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kirloskar Oil Engines Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE