Kirloskar Oil Engines Limited (KOEL) Achieves Record High Stock Surge of 11% on Strong Q1 Performance
The shares of Kirloskar Oil Engines Limited (KOEL), a prominent entity within the Kirloskar Group, are currently witnessing a remarkable upward trend. The stock has surged by over 11% intraday, primarily fueled by the robust financial results for the June quarter. Notably, Kirloskar Oil’s standalone net profit exhibited an impressive 60% year-on-year surge, reaching Rs 103 crore during the initial quarter of the fiscal year 2023-24. This remarkable performance has propelled the stock to a record high of Rs 490.30, even amidst a subdued market sentiment. Despite a brief slowdown due to profit-booking, the stock continues to maintain its robust position. As of now, it is trading at Rs 478.05 on the BSE, showcasing a substantial strength of 8.36%.
The June quarter presented Kirloskar Oil with exceptional financial outcomes, underscored by a 60% YoY surge in standalone net profit, amounting to Rs 103.24 crore. Furthermore, the revenue witnessed a significant 32% annual growth and a commendable 10% quarterly expansion, reaching Rs 1,264.70 crore. Impressively, the company’s EBITDA margin also exhibited improvement, rising from 10.8% to 12.1% on a YoY basis.
Kirloskar Oil’s core operations encompass the manufacturing of engines, farm equipment, and generator sets, with an expanding presence in global markets. The company’s business segment displayed robust growth throughout the June quarter. Looking forward, the management envisions substantial growth prospects across pivotal sectors, including exports, infrastructure, and data centers.
Shedding light on the company’s stock performance, it is noteworthy that in the past year, specifically on August 11, 2022, the stock was valued at Rs 163, marking its lowest point within that period. However, the stock has since achieved an impressive 201% surge within a year, culminating in its current record high.