The shares of Kirloskar Oil Engines Ltd jumped nearly 15 percent after a huge block deal involving 25 million shares traded hands in the early hours of Wednesday, as per the data on NSE. The deal value is estimated to be around Rs 825 Crores.
Though the details of the buyers and sellers were not known, ET Now has reported that the Kulkarni family is likely to have exited their holding in the company through the block deals with local institutions and insurance companies were the likely buyers. The deal saw as much as 13 percent of stakes change hands.
The stock started its trading session at Rs 338 and gained 15 percent to reach a 5-year high of Rs 384.30. Looking at a time frame of 1 year, the stock has been able to provide Multibagger returns of 198 percent to its stakeholders.
Kirloskar Oil Engines specializes in the manufacturing of air-cooled and liquid-cooled diesel engines and generator sets, offering a wide range of power output. It manufactures a variety of agri-engines and diesel engine pump sets that have over generations, and continue to, serve the irrigation needs of farmers.
The company has released a strategic plan where it intends to double its profits within the next three years with sales of Rs 6,500 crore and double-digit operating profit margin and is positioned strategically to leverage favorable trends within their sector, including PLI schemes, government infrastructure spending, and the power deficit.
Digging into the financials of the company, the revenues have marginally gone down from Rs 1,228 crores in Q2 and Rs 1,220 crores in Q3. On a contrasting note, the PAT figures have shown a different picture with an upward pattern from Rs 82 crores in Q2 and Rs 88 crores in Q3.
Written by Amit Madnani
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