Shares of this multibagger small-cap stock associated with the ‘Compressors, Pumps & Diesel Engines’ industry jumped approximately 3 percent in Thursday’s trading session after the company announced robust results for Q4FY24, i.e., for the quarter ending March 2024. In the last month, the company’s stock gained nearly 20 percent for its holders.
With a market capitalization of Rs 15,395.03 crores, the stocks of Kirloskar Oil Engines Limited started their trading session on Thursday at Rs 1,120 and currently trades at Rs 1,062.05, gaining nearly 3 percent compared to the previous close of Rs 1,034 apiece.
Such bullish movements in the company’s share price were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for Q4FY24, i.e., for the quarter ending March 2024.
On a sequential basis, the company’s prime business indicators, viz, its operating revenues as well as after-tax profits, reported a jump in numbers. The former rose from Rs 1,390 crores during Q3FY24 to Rs 1,660 crores during Q4FY24, and the latter, keeping the timeframe the same, shifted up from Rs 89 crores to Rs 147 crores.
Comparing Q4FY23 v/s Q4FY24, the metrics discussed above showed drastic positive movements with the operating revenue numbers increasing from Rs 1,384 crores to Rs 1,660 crores and the after-tax profits, keeping the timeframe the same, rising by a whopping 86 percent from Rs 79 crores to Rs 147 crores.
Historically, the company’s ratio analysis portrays its return ratios, viz, the return on equity (RoE) as well as the return on capital employed (RoCE), being reported at decent numbers with the former increasing from 8.38 percent during FY22 to 14.43 during FY23, and the latter, during the same period, rising from 10.39 percent to 15.65 percent.
Keeping a purview of the last year, the company’s stock has proven to deliver multibagger returns of approximately 171 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.71 lakhs.
Kirloskar Oil Engines Limited is an India-based company manufacturing and distributing generating sets, Internal Combustion Engines (ICE), and related components. The company caters to various sectors including engineering, manufacturing, defence, telecom, and textile among others.
Written by Amit Madnani
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