Buzzing stock: Shares of this diesel engine company are rallying on the bourses after a strong Q1FY23 performance

Buzzing stock: Shares of this diesel engine company are rallying on the bourses after a strong Q1FY23 performance

Indian Market
by 5paisa Research Team Last Updated: 2022-08-11T12:25:47+05:30

As per the exchange filing, the company’s consolidated revenue from operations grew 45% YoY to Rs 1191.4 crore.

The shares of Kirloskar Oil Engines Ltd, an S&P BSE SmallCap company, are buzzing on the bourses today. As of 11.53 am, the shares of the company are trading at Rs 167.70, an increase of 6.07% over the previous close.

This rally has come on the back of robust performance reported for the quarter ended June 2022. As per the exchange filing, the company’s consolidated revenue from operations grew 45% YoY to Rs 1191.4 crore. Subsequently, the PAT jumped 154% YoY to Rs 82.1 crore. Similarly, the PAT margins expanded 300 bps YoY to 6.9% in Q1FY23.

As per the company’s press release, power generation, industrial engines, spare parts, tractor engines, and electric pump businesses performed well during the quarter. The management stated that they have started preparing for the next emission norms upgrade in the domestic PowerGen market as well as introducing alternate fuel engines. With that, they are also confident of gaining traction in the most advanced emission norms-driven markets.

Even in the pre-opening session today, the shares of Kirloskar Oil Engines Ltd witnessed heavy demand from buyers. During this time, the share price had jumped 6.26% and was one of the top gainers from Group A.

Kirloskar Oil Engines Limited is a leader in the manufacturing of diesel engines, agricultural equipment, and generator sets with a sizable presence in international markets.

The company is currently trading at a TTM PE of 10.21x against the industry PE of 31.67x. In FY22, the company delivered an ROE & ROCE of 8.56% and 9.93%, respectively.

Today, the scrip opened at Rs 168 and has touched a high and low of Rs 174.4 and Rs 163, respectively. So far 63,301 shares have been traded on the bourses.

The stock has a 52-week high & low of Rs 239.85 and Rs 122.60, respectively on BSE.


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