In the dynamic landscape of industrial engines and power solutions, Kirloskar Oil Engines Ltd (KOEL) stands as a prominent player. As a flagship company of the Kirloskar group, KOEL is a key manufacturer and service provider of diesel engines, generator sets, and a diverse range of pump sets, operating across sectors like agriculture, power generation, and industry. Bolstered by a remarkable market position, KOEL annually manufactures over 40,000 industrial engines and an impressive 1,45,000 diesel Agri engines and pump sets. With a robust portfolio that includes engines ranging from 2.5HP to 740HP and diesel gensets from 5kVA to 1,500kVA, the company’s strides in innovation, such as their High-Efficiency 3-Phase L.V. Electric Motor and BS-IV engines, underscore its commitment to growth and technological advancement. In this article, we delve into the potential trajectory of Kirloskar Oil Engines’ share price from 2023 to 2030, exploring whether it can attain the coveted 1000 INR mark.
ABOUT KIRLOSKAR OIL ENGINES
Kirloskar Oil Engines is a leading manufacturer of engines, generator sets, and agricultural equipment with a history spanning over a century. The company’s commitment to excellence, integrity, collaboration, and innovation has been recognized through a multitude of awards and certifications. With advanced manufacturing facilities and a strong focus on sustainable practices, Kirloskar Oil Engines aims to power a caring, prosperous, and sustainable future. The company’s journey of innovations, collaborations, and customer-centric approach has paved the way for its remarkable growth and contribution to various industries.
Kirloskar Oil Engines Q1 FY2024 Results: Summary and Key Points
- Kirloskar Oil Engines reported a significant 53% increase in consolidated net profit for Q1 FY2024, reaching Rs 126 crore compared to Rs 82 crore in the same period last year.
- The company achieved a remarkable 30% year-on-year growth in revenue, with Q1 FY2024 revenue standing at Rs 1,543 crore, compared to Rs 1,191 crore in Q1 FY2023.
- The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 FY2024 was Rs 153 crore, representing a substantial 48% increase from Rs 103 crore in Q1 FY2023.
- Kirloskar Oil Engines reported a noteworthy improvement in net profit, which increased by 60% year-on-year to Rs 103 crore in Q1 FY2024, up from Rs 65 crore in Q1 FY2023.
- The company maintained a robust financial position with a net cash position of Rs 300 crore, considering treasury investments and excluding unclaimed dividends, which reflects its strong liquidity.
KIRLOSKAR OIL ENGINES IN RECENT NEWS
- The share price of Kirloskar Oil Engines saw a remarkable surge of 8.30%, reaching a new 52-week high at Rs 518.75, surpassing its previous closing price of Rs 479. Over the past year, this multibagger stock has witnessed an impressive growth of over 191%.
- In the first quarter of the current fiscal year (Q1 FY24), the company delivered robust financial results. “The Q1 topline growth of Rs 1,500 crore exceeded the market’s expectations. The bottomline also showed significant growth. Q1 results were impressive, and we anticipate even more substantial performance in the second half,” said Mayuresh Joshi, Head of Equity Research at William O’Neil India, during an interview with BT TV.
HOW TO BUY KIRLOSKAR OIL ENGINES SHARES IN INDIA?
To buy Kirloskar Oil Engines shares in India, you can use the services of various brokerage firms and trading platforms. Some well-known brokerage firms and platforms where you can purchase shares include:
- Zerodha
- ICICI Direct
- HDFC Securities
- Kotak Securities
- Sharekhan
- Upstox
- Angel Broking
- 5Paisa
- Axis Direct
- Motilal Oswal
KIRLOSKAR OIL ENGINES SHARE PRICE TARGET 2023 TO 2025
Let’s examine the statistics regarding the projected share price target for the period between 2023 and 2025, after conducting a thorough review of the company.
| When | Maximum Price | Minimum Price |
| August 2023 | ₹491.40 | ₹446.73 |
| September 2023 | ₹502.70 | ₹457.00 |
| October 2023 | ₹488.06 | ₹443.69 |
| November 2023 | ₹497.82 | ₹452.57 |
| December 2023 | ₹512.76 | ₹466.14 |
In the context of Kirloskar Oil Engines’ share price target for 2023, we can observe a consistent upward trend in the stock’s performance from August to December. As of August 2023, the share price stands at ₹491.40, and with each passing month, it steadily climbs. By December 2023, it is expected to reach ₹512.76. This trend suggests an optimistic outlook for the company’s stock price, indicating the potential for further gains as the year progresses.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹523.22 | ₹454.97 |
| February 2024 | ₹533.90 | ₹464.26 |
| March 2024 | ₹539.29 | ₹468.95 |
| April 2024 | ₹523.58 | ₹455.29 |
| May 2024 | ₹513.32 | ₹446.36 |
| June 2024 | ₹549.25 | ₹477.61 |
| July 2024 | ₹565.73 | ₹491.94 |
| August 2024 | ₹577.04 | ₹501.78 |
| September 2024 | ₹588.58 | ₹511.81 |
| October 2024 | ₹598.15 | ₹520.13 |
| November 2024 | ₹622.08 | ₹540.94 |
| December 2024 | ₹634.52 | ₹551.76 |
Looking ahead to 2024, Kirloskar Oil Engines’ share price demonstrates a sustained upward trajectory, showing resilience and potential for growth. Starting from ₹523.22 in January, the share price consistently climbs month after month, reaching ₹634.52 by December 2024. This steady ascent signals a positive outlook for the company’s stock, with December 2024 witnessing a maximum price of ₹634.52 and a minimum of ₹551.76, highlighting its ongoing upward momentum.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹647.21 | ₹497.85 |
| February 2025 | ₹681.28 | ₹524.06 |
| March 2025 | ₹694.90 | ₹534.54 |
| April 2025 | ₹688.02 | ₹529.25 |
| May 2025 | ₹674.53 | ₹518.87 |
| June 2025 | ₹691.39 | ₹531.84 |
| July 2025 | ₹701.92 | ₹539.94 |
| August 2025 | ₹727.38 | ₹559.52 |
| September 2025 | ₹741.93 | ₹570.71 |
| October 2025 | ₹756.77 | ₹582.13 |
| November 2025 | ₹734.72 | ₹565.17 |
| December 2025 | ₹749.42 | ₹576.48 |
As we set our sights on 2025, there’s an encouraging story unfolding for Kirloskar Oil Engines’ share price. It begins the year at ₹647.21 in January and maintains an impressive upward march, reaching ₹749.42 by December 2025. This steady climb paints a promising picture for investors, indicating the company’s resilience and potential for continued growth. December 2025 sees the stock’s value peak at ₹749.42, while even its lowest point at ₹576.48 reflects a positive, upward momentum throughout the year.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹861.83 | ₹603.28 |
| 2027 | ₹732.56 | ₹512.79 |
| 2028 | ₹952.32 | ₹638.06 |
| 2029 | ₹1,238.02 | ₹866.62 |
| 2030 | ₹1,299.92 | ₹909.95 |
In the coming years from 2026 to 2030, Kirloskar Oil Engines’ share price tells a compelling story of growth and opportunity. Beginning at ₹861.83 in 2026, the stock steadily climbs, eventually reaching ₹1,299.92 by 2030. This journey reflects a promising future for investors, suggesting that the company may continue to deliver strong returns. With a peak price of ₹1,299.92 and a lowest point of ₹603.28 recorded during this period, it’s a story of potential gains and optimism for those who have faith in the company’s performance.
KIRLOSKAR OIL ENGINES FINANCIAL CONDITION (LAST 5 YEARS)
| Year | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales | 3,626 | 3,379 | 3,296 | 4,022 | 5,024 |
| Expenses | 3,251 | 3,085 | 2,909 | 3,610 | 4,290 |
| Operating Profit | 376 | 295 | 387 | 412 | 734 |
| OPM (%) | 10% | 9% | 12% | 10% | 15% |
| Other Income | 63 | 52 | 17 | 27 | 29 |
| Interest | 13 | 14 | 50 | 106 | 210 |
| Depreciation | 94 | 87 | 84 | 101 | 105 |
| Profit before tax | 331 | 245 | 270 | 232 | 449 |
| Tax (%) | 34% | 23% | 27% | 26% | 26% |
| Net Profit | 220 | 188 | 197 | 171 | 332 |
| EPS in Rs | 15.16 | 12.81 | 13.48 | 12.07 | 22.96 |
| Dividend Payout (%) | 33% | 31% | 30% | 33% | 22% |
Over the past five years, Kirloskar Oil Engines has shown a steady growth trajectory in its financial performance. Starting in March 2019, the company’s sales have exhibited consistent growth, increasing from 3,626 units to an impressive 5,024 units in March 2023. Simultaneously, the company has effectively managed its expenses, maintaining a healthy operating profit margin that ranged from 9% to 15% during this period.
One notable aspect is the company’s ability to generate other income, which has gradually increased, contributing positively to its overall profitability. However, Kirloskar Oil Engines has faced escalating interest expenses, almost doubling from 2019 to 2023, which warrants attention. Despite this, the company’s net profit has risen from 188 units in 2019 to 332 units in 2023, indicating sustained financial strength. Moreover, its earnings per share (EPS) has significantly improved, reaching 22.96 Rs in 2023. The consistent dividend payout also demonstrates the company’s commitment to rewarding its shareholders. Overall, Kirloskar Oil Engines appears to be in a robust financial position, marked by growth in sales and profitability over the last five years.
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FAQs
The projected share price target for Kirloskar Oil Engines by December 2025 is ₹749.42, as indicated by the analysis. This suggests a steady upward trend in the stock’s performance over the next few years.
Looking ahead to 2030, considering the consistent growth trajectory observed in the analysis, Kirloskar Oil Engines is expected to reach ₹1,299.92 according to our analysis.
Is it worthwhile to invest in Kirloskar Oil Engines for the long term?
Investing in Kirloskar Oil Engines for the long term seems promising based on the analysis provided. The stock has displayed a consistent upward movement over several years. However, before making any investment decisions, it’s advisable to conduct thorough research, consider your financial goals, and stay informed about market trends.
Will the Kirloskar Oil Engines stock grow?
Yes, the historical data and analysis suggest that Kirloskar Oil Engines’ stock has a tendency to grow. The consistent upward trajectory seen over the years indicates the potential for continued growth, though it’s important to remember that all investments carry inherent risks.
Can Kirloskar Oil Engines reach ₹1000 INR?
While the analysis does not provide a specific target of ₹1000 INR, the historical trend suggests that Kirloskar Oil Engines’ stock has the potential to appreciate in value. There’s a possibility of reaching the 1000 mark by 2029 ,it reaches depends on various factors, including the company’s performance, market conditions, and external economic influences.
CONCLUSION
In conclusion, Kirloskar Oil Engines presents an intriguing investment opportunity, with both strengths and areas of concern. Over the last five years, the company has showcased impressive profit growth at a CAGR of 25.2% and maintained a commendable dividend payout of 28.2%, which could attract income-oriented investors. However, there are notable drawbacks, such as the stock trading significantly above its book value at 2.94 times and the relatively sluggish sales growth of 10.5% over the past half-decade. Additionally, the decline in promoter holding by -18.2% in the last three years raises some governance questions.
While the stock’s current P/E ratio of 18.1 is higher than the median P/E of 12.9, indicating that it might be trading at a premium, its future performance remains uncertain. Therefore, whether Kirloskar Oil Engines can reach the ambitious ₹1000 INR target hinges on various factors, including its ability to address its growth challenges and leverage its strengths effectively. Investors should carefully weigh these pros and cons while considering the company as a potential investment, keeping a watchful eye on its performance in the coming years.
What did we learn?
- 1 ABOUT KIRLOSKAR OIL ENGINES
- 2 Kirloskar Oil Engines Q1 FY2024 Results: Summary and Key Points
- 3 KIRLOSKAR OIL ENGINES IN RECENT NEWS
- 4 HOW TO BUY KIRLOSKAR OIL ENGINES SHARES IN INDIA?
- 5 KIRLOSKAR OIL ENGINES SHARE PRICE TARGET 2023 TO 2025
- 6 KIRLOSKAR OIL ENGINES FINANCIAL CONDITION (LAST 5 YEARS)
- 7 FAQs
- 7.1 What is the share price target for Kirloskar Oil Engines by 2025?
- 7.2 What is the share price target for Kirloskar Oil Engines by 2030?
- 7.3 Is it worthwhile to invest in Kirloskar Oil Engines for the long term?
- 7.4 Will the Kirloskar Oil Engines stock grow?
- 7.5 Can Kirloskar Oil Engines reach ₹1000 INR?
- 8 CONCLUSION
