2QFY2016 Result Update | Capital Goods
November 17, 2015
Kirloskar Oil Engines
NEUTRAL
CMP
`262
Performance Highlights
Target Price
-
Y/E March (` cr)
2QFY16 2QFY15
% chg. (yoy)
1QFY15
% chg. (qoq)
Investment Period
-
Net Sales
590
628
(6.0)
582
1.5
EBITDA
48
64
(24.3)
53
(8.1)
Stock Info
EBITDA margin (%)
8.2
10.2
(198)
9.0
(86)
Sector
Capital Goods
PAT
36
35
1.1
36
(0.5)
Market Cap (` cr)
3,796
Source: Company, Angel Research (Standalone)
Net debt (` cr)
(876)
For 2QFY2016, Kirloskar Oil Engines (KOEL) reported a disappointing set of
Beta
0.6
numbers. Its top-line for the quarter declined by 6.0% yoy to `590cr. The raw
52 Week High / Low
261/ 141
material cost declined by 286bp yoy to 62.3% of sales while employee expense
Avg. Daily Volume
26,711
increased by 79bp yoy to 8.5% of sales, and other expenses increased by
Face Value (`)
2
405bp yoy to 21.0% of sales. This resulted in the EBITDA margin contracting by
BSE Sensex
25,760
198bp yoy to 8.2%. Other income increased by 61.1% yoy to `20cr and
Nifty
7,807
consequently, the net profit remained flat at `36cr.
Reuters Code
KIRO.BO
Bloomberg Code
KOEL IN
Outlook to remain subdued in the near term: In the near term, we expect the
company to witness some pressure on account of overall slowdown in the Genset
industry. In addition, the absence of large engines orders has been impacting the
Shareholding Pattern (%)
top-line and profitability. KOEL has expanded its capacity in the past and is
Promoters
72.7
positioned to successfully cater to improvement in demand once the operating
MF / Banks / Indian Fls
6.6
environment changes in the longer run. KOEL also has taken measures to
FII / NRIs / OCBs
10.4
increase its focus on exports which should aid growth.
Indian Public / Others
10.3
Cash rich position: KOEL is a debt free company with cash and cash equivalents
of approximately `835cr. With ample capacity in place, there is no major capex
expected in the near future. Consequently depreciation expense is also expected to remain
Abs.(%)
3m 1yr
3yr
low which will add to the bottom-line. We expect KOEL’s cash and cash equivalents to be
Sensex
(7.6)
(8.6)
40.7
at ~`982cr in FY2017E which is approximately 26% of the current market cap.
KOEL
(0.8)
1.7
39.4
Outlook and Valuation: We expect KOEL’s revenue to recover post FY2016, ie to
`2,826cr in FY2017E. With recovery in the top-line, we expect the EBITDA margin
3 Year price chart
to recover to 10.4% in FY2017E. Consequently the profit is expected to grow to
400
`193cr in FY2017E. We have scaled down our numbers for FY2016E and have
350
300
accounted for improvement in the top-line for FY2017E. At the current market price,
250
the stock trades at 19.7x its FY2017E earnings (vs its 3-year median of 21.7x). At
200
150
the current juncture, we have a Neutral rating on the stock as the infrastructure
100
scenario in the country is expected to remain dampened in the near term.
50
0
Key financials
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
Net Sales
2,357
2,319
2,507
2,471
2,826
% chg
1.3
(1.6)
8.1
(1.4)
14.3
Source: Company, Angel Research
Adj. Net Profit
212
178
143
132
193
% chg
35.2
(15.9)
(19.8)
(7.8)
46.1
OPM (%)
13.8
13.1
9.9
8.8
10.4
EPS (`)
14.7
12.3
9.9
9.1
13.3
P/E (x)
17.9
21.2
26.5
28.7
19.7
P/BV (x)
3.3
3.0
2.8
2.7
2.5
RoE (%)
19.4
14.7
11.0
9.7
13.4
RoCE (%)
19.4
16.4
10.9
8.0
12.4
Milan Desai
EV/Sales (x)
1.4
1.4
1.2
1.2
1.0
022 4000 3600 Ext: 6846
EV/EBITDA (x)
10.3
10.3
11.6
13.4
9.5
Source: Company, Angel Research, Note: CMP as of November 13, 2015
Please refer to important disclosures at the end of this report
1
Kirloskar Oil Engines | 2QFY2016 Result Update
Exhibit 1: 2QFY2016 performance highlights
Y/E March (` cr)
2QFY16
2QFY15
% chg. (yoy)
1QFY15
% chg. (qoq)
1HFY2016
1HFY2015
% chg
Net Sales
590
628
(6.0)
582
1.5
1,171
1,267
(7.5)
Net raw material
368
409
(10.2)
373
(1.5)
741
825
(10.2)
(% of Sales)
62.3
65.2
(286)
64.2
(186)
63.2
65.1
(2.9)
Employee Cost
50
48
3.6
48
5.5
98
94
3.8
(% of Sales)
8.5
7.7
79
8.2
32
8.3
7.4
12.2
Other Expenses
124
106
16.4
108
14.5
232
208
11.3
(% of Sales)
21.0
16.9
405
18.6
239
19.8
16.5
20.4
Total Expenditure
542
564
(4.0)
529
2.4
1,071
1,128
(5.1)
Operating Profit
48
64
(24.3)
53
(8.1)
101
139
(27.6)
OPM (%)
8.2
10.2
(198)
9.0
(86)
8.6
11.0
(238)
Interest
0
0
(86.7)
0
(33.3)
0
0
(79.2)
Depreciation
27
26
3.9
26
2.4
53
50
5.4
Other Income
20
12
61.1
19
2.2
39
26
49.4
PBT
41
50
(17.9)
46
(9.8)
87
115
(24.5)
(% of Sales)
7.0
8.0
7.8
7.4
9.1
Tax
5
15
(63.5)
10
(44.4)
15
32
(53.1)
(% of PBT)
13.1
29.4
21.2
17.4
28.0
Reported PAT
36
35
1.1
36
(0.5)
72
83
(13.3)
Extraordinary Expense/(Inc.)
-
-
-
-
-
Adjusted PAT
36
35
1.1
36
(0.5)
72
83
(13.3)
PATM
6.1
5.6
6.2
6.1
6.5
Source: Company, Angel Research
Exhibit 2: Top-line remains subdued
Exhibit 3: PowerGen Segment growth
350
50.0
700
40
44.3
39.3
40.0
300
600
27.1
30.0
250
500
21.4
20.0
20
200
9.1
9.1
10.0
400
0
.4
7.4
7.5
150
-
300
5.4
8.2
(10.0)
100
(9.9)
(5.2)
(2.8)
0
(9.0)
(20.0)
200
(6
.0)
50
(30.0)
(27.7)
100
(15.7)
0
(40.0)
0
(20)
PowerGen (LHS)
yoy growth (RHS)
Revenue (LHS)
yoy growth (RHS)
Source: Company, Angel Research
Source: Company, Angel Research
Top-line growth remains subdued
For 2QFY2016, the top-line declined by 6.0% yoy to `590cr. The decline was on
account of a muted performance across all segments and due to absence of large
engine orders in FY2016 (last portion of the order completed in FY2015). As per
the Management, the domestic power gen segment saw a decline of 4% in
1HFY2016E. Exports performed well, growing by 27% on a yoy basis.
November 17, 2015
2
Kirloskar Oil Engines | 2QFY2016 Result Update
Exhibit 4: Segmental Performance
(` Cr)
2QFY16
2QFY15
% chg. (yoy)
1HFY16
1HFY15
% chg. (yoy)
PowerGen
265
264
0.5
541
555
(2.4)
Agricultural
107
113
(5.8)
206
205
0.4
Industrial
99
94
5.0
190
193
(1.6)
Customer Support
83
85
(2.4)
172
177
(2.7)
Large Engines
31
67
(54.3)
52
122
(57.4)
Total
584
623
1,162
1,252
Source: Company, Angel Research
EBITDA Margin contracts on account of higher other expenses
The raw material cost declined by 286bp yoy to 62.3% of sales while employee
expense increased by 79bp yoy to 8.5% of sales, and other expenses increased by
405bp yoy to 21.0% of sales. This resulted in the EBITDA margin contracting by
198bp yoy to 8.2%. As per the Management, the other expense was higher as
there was a one-off expense related to payment of consultancy fees and shifting of
manufacturing from Pune plant to Kagal plant. The fixed portion of the fees (~`7-
`8cr) was paid up front. Additionally, the CSR expense which was incurred in the
last quarter of the previous year has been spread out evenly in the current year. As
on 1HFY2016, the expense was `3cr against `10-`20 lakhs in the same period
last year. Aided by higher other income which grew by 61.1% yoy to `20cr, the net
profit grew marginally by 1.1% yoy to `36cr.
Exhibit 5: EBITDA margin
Exhibit 6: Net profit trend
EBITDA (LHS)
EBITDA Margin (RHS)
PAT (LHS)
yoy growth (RHS)
90
16
60
20
13.7
13.0
15.2
80
14
11.6
11.8
50
10
70
10.2
12
0.9
1.1
9.5
0
60
9.0
40
8.2
8.2
10
(10.6)
(16.1)
50
(10)
8
30
40
(20)
6
(24.7)
(24.1)
30
20
(30)
20
4
10
2
(40)
10
(44.9)
(46.7)
0
0
0
(50)
Source: Company, Angel Research
Source: Company, Angel Research
November 17, 2015
3
Kirloskar Oil Engines | 2QFY2016 Result Update
Conference Call Highlights
Economic revival has been sluggish and has had a direct impact on the
PowerGen and Industrial segment. The Agri business was impacted on
account of shift in demand towards electrical pump sets as electrification has
improved. Spare sales were lower on account of low usage of DG set and
lesser industrial activities.
The competitive scenario is intense in the sub-125kVA segment and everybody
is scampering for a share of the pie. The domestic PowerGen segment industry
saw a decline of 4% in volume terms. Few players in MHP and HHP have
taken price cuts of ~4-5%. KOEL has refrained from cutting its prices.
Market share increase in PowerGen by ~4-5% for a competitor is on account
of pick up in 4G activity (Reliance Jio). Ex of telecom, KOEL maintained its
market share. The Management expects telecom to be in a lull over the next
few months but it should pick up when the Airtel order comes up. The
company has not participated in a big way in 4G but is hopeful that some of
the test orders translate in to larger orders.
Exports’ contribution has increased from
8% in 1HFY2015 to
10% in
1HFY2016. The company expects to maintain its previous growth rates.
Tiller volumes are expected to pick up in the next year on account of subsidy
application and link up with four major banks for retail financing. Subsidy
approval from various state governments will be an important factor in the
near term. The company has sold 600 power tillers in 1HFY2016. With timely
subsidies, the Management is expecting sales of ~500 tillers per month for
FY2017E.
Investment arguments
Near term performance subdued; to improve over the longer run
The generator set industry in general is facing headwinds on account of delay in
pickup in economic recovery. In the past, the industrial and infrastructure segment
witnessed persistent headwinds such as inflationary pressures, slow order inflows,
high interest rates and policy paralysis, which has resulted in slower execution and
dip in demand for gensets. The PowerGen segment accounts for ~45% of total
revenues and is impacted by the above mentioned reasons. Although the recovery
has been slower than expected, the expected improvement in the economic
scenario would impact KOEL positively as it has the necessary capacity in place to
cater to an improving scenario.
Debt free and cash rich company
KOEL is a debt free company with cash and cash equivalents of approximately
`835cr. With ample capacity in place, there is no major capex expected in the
near future. Consequently depreciation expense is also expected to remain low
which will add to the bottom-line. We expect KOEL’s cash and cash equivalents to
be at ~`982cr in FY2017E which is approximately 26% of the current market cap.
November 17, 2015
4
Kirloskar Oil Engines | 2QFY2016 Result Update
This is on the back of measures taken by the company to significantly reduce its
debtor days from 45 in FY2013 to 17 in FY2015.
Increasing focus on exports - a long term growth driver
In order to balance out any slowdown in the domestic economy, the company is
focusing on the export market. The company’s major export markets are Middle
East and Africa along with USA, Europe and South Asia/South East Asia. Middle
East accounts for 47% of total exports and Africa accounts for 37%. The company
is upping its focus on exports and plans to enter new markets while also increasing
its market share in existing markets. The company expects Middle East and Africa
to be larger contributors to the international business of the company and is taking
steps to increase its presence in USA where it has less of a presence.
Financials
Slow recovery in top-line
On account of overall slowdown in the PowerGen and Industrial segment along
with absence of large engine orders, we expect the top-line to regress in FY2016E
and recover in FY2017E to `2,826cr. The margins are expected to remain under
pressure for the current year on account of lower sales and on account of some
one-time expenses in the current year (Shifting to Kagal plant and Consultancy
fees). We expect the EBITDA margin to improve on account of operating leverage
and also due to higher-margin large engine orders coming in FY2017E.
Exhibit 7: Revenue growth to improve going forward
Exhibit 8: EBITDA margin to recover
3,000
20
350
16
13.8
13.1
13.1
14
2,500
14.3
10.4
12
9.9
2,000
10
300
8.8
10
8.1
1,500
8
1.3
6
1,000
0
250
(1.6)
(1.4)
4
(4.0)
500
2
-
(10)
200
0
FY2012
FY2013
FY2014
FY2015
FY2016E FY2017E
FY2012
FY2013
FY2014
FY2015
FY2016E FY2017E
Revenue (LHS)
Revenue growth (RHS)
EBITDA (LHS)
EBITDA Margin (RHS)
Source: Company, Angel Research
Source: Company, Angel Research
The depreciation expense is expected to be flat as the company has undertaken
capacity expansion in the past to position itself to best cater to the future uptick in
demand. With no significant capex in sight, the flat depreciation is expected to add
directly to the bottom-line. The cash position is expected to remain strong and as
per our estimates, the cash and cash equivalents are expected to be at `982cr in
FY2017E. On account of operating leverage, the PAT for FY2017E is expected to
improve to `193cr.
November 17, 2015
5
Kirloskar Oil Engines | 2QFY2016 Result Update
Exhibit 9: Relative valuation (Trailing twelve months)
Mcap
Sales
OPM
PAT
EPS
RoIC
P/E
P/BV EV/EBITDA
EV/ Sales
Company
(` cr)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
KOEL
3,796
2,480
8.5
132
9.1
17.6
28.7
2.6
14.1
1.2
Cummins India
27,886
28,491
2.7
781
28.2
23.2
35.7
8.5
35.3
1.0
Greaves Cotton
3,410
1,893
9.4
134
5.5
17.7
25.4
4.1
18.7
1.8
Source: Company, Angel Research
Outlook and valuation: We expect KOEL’s revenue to recover post FY2016E to
`2,826cr in FY2017E. With recovery in top-line, we expect the EBITDA margin to
recover to 10.4% in FY2017E. Consequently the profit is expected to grow to
`193cr in FY2017E. At the moment, the PowerGen and Industrial segments are
facing pressure on account of slower-than-expected recovery in the
macroeconomic environment. We have scaled down our numbers for FY2016E
and have accounted for improvement in the top-line for FY2017E. At the current
market price, the stock trades at 19.7x its FY2017E earnings (vs its 3-year median
of 21.7x). At the current juncture, we have a Neutral rating on the stock as the
infrastructure scenario in the country remains dampened in the near term.
Exhibit 10: One-year forward P/E band
450
400
350
300
250
200
150
100
50
Price (`)
12x
17x
22x
27x
Source: Company, Angel Research
Concerns
Continued slowdown in the economy: Any continued slowdown will adversely
affect the company’s performance.
Surplus electricity scenario: Contracting demand supply gap will be an adverse
situation for the company to some extent.
Fluctuations in Steel price: Any substantial fluctuation in the steel price can lead to
margin compression of the company.
Increasing imports from China: Low cost Chinese imports will continue to pose a
threat to the company.
November 17, 2015
6
Kirloskar Oil Engines | 2QFY2016 Result Update
Company background
KOEL is the flagship company of the Kirloskar group, one of India’s largest
engineering conglomerates. It is one of the world’s largest generating set
manufacturers, specializing in manufacturing of both air-cooled and water-cooled
engines (2.5HP to 740HP) and diesel generating sets across a wide range of
power output from 5kVA to 3,000kVA. It has four manufacturing plants - at Kagal,
Pune, Nashik and Rajkot. It has a sizable presence in international markets, with
offices in Dubai, South Africa, and Kenya, and representatives in Indonesia and
Nigeria. KOEL also has a strong distribution network throughout the Middle East
and Africa. It caters to Power Generation, Agriculture and Industrial and machinery
sectors.
November 17, 2015
7
Kirloskar Oil Engines | 2QFY2016 Result Update
Profit and loss statement
Y/E March (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
Total operating income
2,357
2,319
2,507
2,471
2,826
% chg
1.3
(1.6)
8.1
(1.4)
14.3
Net Raw Materials
1446
1444
1626
1567
1779
% chg
4.0
(0.2)
12.6
(3.6)
13.5
Power and Fuel
23
21
21
20
20
% chg
(17.7)
(9.0)
0.6
(1.4)
(2.8)
Personnel
173
163
188
202
222
% chg
(1.1)
(6.3)
15.9
7.0
10.0
Other
390
388
424
464
510
% chg
(9.1)
(0.3)
9.1
9.5
10.0
Total Expenditure
2,032
2,015
2,259
2,253
2,531
EBITDA
326
304
249
218
295
% chg
7.1
(6.6)
(18.3)
(12.3)
35.1
(% of Net Sales)
13.8
13.1
9.9
8.8
10.4
Depreciation& Amortisation
93
98
102
105
111
EBIT
233
206
147
113
184
% chg
9.6
(11.7)
(28.8)
(23.2)
62.9
(% of Net Sales)
9.9
8.9
5.9
4.6
6.5
Interest & other Charges
2
0
0
0
0
Other Income
40
38
59
71
85
(% of Net Sales)
1.7
1.6
2.4
2.9
3.0
Recurring PBT
231
206
147
112
183
% chg
17.5
(11.1)
(28.8)
(23.2)
63.0
PBT (reported)
271
243
205
183
268
Tax
72
65
62
51
75
(% of PBT)
26.6
26.7
30.3
28.0
28.0
PAT (reported)
199
178
143
132
193
Extraordinary Expense/(Inc.)
13.4
0.0
0.0
0.0
0.0
ADJ. PAT
212
178
143
132
193
% chg
35.2
(15.9)
(19.8)
(7.8)
46.1
(% of Net Sales)
9.0
7.7
5.7
5.3
6.8
Basic EPS (`)
14.7
12.3
9.9
9.1
13.3
Fully Diluted EPS (`)
14.7
12.3
9.9
9.1
13.3
% chg
35.2
(15.9)
(19.8)
(7.8)
46.1
November 17, 2015
8
Kirloskar Oil Engines | 2QFY2016 Result Update
Balance sheet
Y/E Mar. (` cr)
FY2013
FY2014
FY2015
FY2016E
FY2017E
SOURCES OF FUNDS
Equity Share Capital
29
29
29
29
29
Reserves& Surplus
1,125
1,238
1,313
1,357
1,463
Shareholders’ Funds
1,154
1,267
1,341
1,386
1,492
Total Loans
-
-
-
-
-
Other Long Term Liabilities
30
13
17
17
17
Long Term Provisions
22
25
24
24
24
Deferred Tax (Net)
34
30
29
29
29
Total liabilities
1,240
1,335
1,412
1,457
1,562
APPLICATION OF FUNDS
Gross Block
1,133
1,179
1,249
1,338
1,440
Less: Acc. Depreciation
542
636
736
841
952
Net Block
591
543
514
497
488
Capital Work-in-Progress
27
42
21
22
14
Goodwill
-
-
-
-
-
Investments
418
608
876
824
824
Long Term Loans and adv.
66
96
108
108
108
Other Non-current asset
26
29
32
32
32
Current Assets
615
534
381
485
672
Cash
25
52
25
52
159
Loans & Advances
93
102
100
104
119
Inventory
189
167
172
176
224
Debtors
289
177
53
122
139
Other current assets
21
35
31
31
31
Current liabilities
504
516
521
512
576
Net Current Assets
112
18
(140)
(27)
96
Misc. Exp. not written off
-
-
-
-
-
Total Assets
1,240
1,335
1,412
1,457
1,562
November 17, 2015
9
Kirloskar Oil Engines | 2QFY2016 Result Update
Cash flow statement
Y/E Mar. (` cr)
FY2013 FY2014
FY2015 FY2016E FY2017E
Profit before tax
271
243
205
183
268
Depreciation
93
98
102
105
111
Change in Working Capital
(81)
122
131
(86)
(17)
Direct taxes paid
(72)
(65)
(64)
(51)
(75)
Others
6
(60)
(35)
(71)
(85)
Cash Flow from Operations
216
338
339
81
202
(Inc.)/Dec. in Fixed Assets
(97)
(61)
(49)
(90)
(94)
(Inc.)/Dec. in Investments
110
(190)
(269)
53
-
(Incr)/Decr In LT loans & adv.
(9)
(33)
(16)
-
-
Others
28
59
52
71
85
Cash Flow from Investing
31
(224)
(282)
33
(9)
Issue of Equity
(0)
-
-
-
-
Inc./(Dec.) in loans
(87)
-
4
-
-
Dividend Paid (Incl. Tax)
(85)
(85)
(87)
(87)
(87)
Others
(78)
(1)
(1)
-
-
Cash Flow from Financing
(250)
(86)
(84)
(87)
(87)
Inc./(Dec.) in Cash
(3)
28
(27)
27
106
Opening Cash balances
27
25
52
25
52
Closing Cash balances
25
52
25
52
159
November 17, 2015
10
Kirloskar Oil Engines | 2QFY2016 Result Update
Key ratios
Y/E Mar.
FY2013
FY2014
FY2015
FY2016E
FY2017E
Valuation Ratio (x)
P/E (on FDEPS)
17.9
21.2
26.5
28.7
19.7
P/CEPS
12.4
13.7
15.5
16.0
12.5
P/BV
3.3
3.0
2.8
2.7
2.5
EV/Net sales
1.4
1.4
1.2
1.2
1.0
EV/EBITDA
10.3
10.3
11.6
13.4
9.5
EV / Total Assets
2.8
2.4
2.1
2.0
1.8
Per Share Data (`)
EPS (Basic)
14.7
12.3
9.9
9.1
13.3
EPS (fully diluted)
14.7
12.3
9.9
9.1
13.3
Cash EPS
21.1
19.1
16.9
16.4
21.0
DPS
5.0
5.0
5.0
5.0
5.0
Book Value
79.8
87.6
92.8
95.9
103.2
DuPont Analysis
EBIT margin
9.9
8.9
5.9
4.6
6.5
Tax retention ratio
0.7
0.7
0.7
0.7
0.7
Asset turnover (x)
3.5
3.5
4.7
5.0
5.3
ROIC (Post-tax)
25.1
22.5
19.2
16.4
24.8
Cost of Debt (Post Tax)
3.2
-
-
-
-
Leverage (x)
(0.4)
(0.5)
(0.7)
(0.6)
(0.7)
Operating ROE
16.7
-
-
-
-
Returns (%)
ROCE (Pre-tax)
19.4
16.4
10.9
8.0
12.4
Angel ROIC (Pre-tax)
34.2
30.8
27.6
22.8
34.4
ROE
19.4
14.7
11.0
9.7
13.4
Turnover ratios (x)
Asset TO (Gross Block)
2
2
2
2
2
Inventory / Net sales (days)
25
28
25
26
26
Receivables (days)
45
37
17
18
18
Payables (days)
93
92
84
83
83
WC cycle (ex-cash) (days)
7
4
(15)
(18)
(9)
Solvency ratios (x)
Net debt to equity
(0.4)
(0.5)
(0.7)
(0.6)
(0.7)
Net debt to EBITDA
(1.4)
(2.2)
(3.6)
(4.0)
(3.3)
Int. Coverage (EBIT/ Int.)
124.7
686.5
733.5
563.4
917.6
November 17, 2015
11
Kirloskar Oil Engines | 2QFY2016 Result Update
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is
a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial
ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /
managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst
has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity
of the company covered by Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
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the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
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sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
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latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Kirloskar Oil Engines
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
November 17, 2015
12