Kirloskar Oil Engines Stock has Given Multibagger Returns of 162% in 1 Year

Today, the Indian market indices opened on a positive note. The S&P BSE Sensex touched 62,127.43, up by 254.81 points from the previous day’s closing. In contrast, the Nifty 50 touched 18,393.35, up by 72.20 from its previous closing of 18,321.15. In this bullish market, a capital goods company reported multibagger returns in the last 1 year.        

Kirloskar Oil Engines Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 152.60 on May 26, 2022, to Rs 400.30 on May 26, 2023, an increase of 162.32% in the one-year holding period.        

The share of Kirloskar Oil Engines Ltd opened at Rs 384.60 and has touched a high and low of Rs 401 and Rs 384.60, respectively. So far 4,769 shares have been traded on the bourses.             

At the time of writing, the shares of Kirloskar Oil Engines Ltd were trading at Rs 400, an increase of 3.60% from the previous day’s closing price of Rs 386.10 on BSE. The stock has a 52-week high and low of Rs 443.25 and Rs 124, respectively on BSE.            

Kirloskar Oil Engines (KOEL) incorporated in June 1978, is engaged in the manufacturing of diesel engines. It is part of the Kirloskar group of companies that has business interests in various sectors such as manufacturing, oil, and gas, power, construction and mining, agriculture, industry, and transport.  

The company is engaged in the manufacturing of Diesel Engines, Irrigation Pump sets, Diesel Generating Sets, Engine Bearings, Engine Valves, and Grey Iron Castings. The company also offers generating sets over 1 MW that run on heavy fuel oils. The engine manufactured by the company is the preferred choice in powering Agricultural Machinery, Construction & Material Handling Machinery, Marine applications, and equipment used by Armed Forces (Military).   

The company is currently trading at a PE of 17.4X against the industry PE of 24.5X. In FY23, the company’s ROE and ROCE were 15.1% and 13.7%, respectively. The firm belongs to Group B stocks and has a market valuation of Rs 5,777 crore.