Kirloskar Oil Engines Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for KIRLOSENG, BSE:533293 Kirloskar Oil Engines Ltd.

Kirloskar Oil Engines Ltd.

02 Feb 2016

1096.80

-3.01%

Kirloskar Oil Engines Ltd- Research Report

Hold: Kirloskar Oil Engines Ltd.

Angel Broking

Kirloskar Oil Engines (KOEL) reported a disappointing set of numbers for 3QFY2016. Its top-line for the quarter declined by 1.8% yoy to Rs601cr. Employee expense as a percentage of sales increased by 34bp yoy to 8.5%, and other expenses as a percentage of sales increased by 181bp yoy to 19.6% of sales. This resulted in the EBITDA margin contracting by 137bp yoy to 8.1%. There was an exceptional expense of Rs10.4cr during the quarter related to Voluntary Retirement Scheme (VRS) for employees. Adjusting for the VRS expense, the net profit declined by 14.9% yoy to Rs29cr. 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 NPCIL orders in large engines segment has been impacting the top-line and profitability. The company has guided that although the near term outlook remains muted, it is hopeful about the longer term prospects. KOEL has expanded its capacity in the past and is positioned to successfully cater to improvement in demand once the operating environment changes in the longer run. KOEL also has taken measures to increase its focus on...

Kirloskar Oil Engines has gained 26.12% in the last 6 Months

Kirloskar Oil Engines Ltd.

17 Nov 2015

1096.80

-3.01%

Kirloskar Oil Engines Ltd- Research Report

Hold: Kirloskar Oil Engines Ltd.

Angel Broking

For 2QFY2016, Kirloskar Oil Engines (KOEL) reported a disappointing set of numbers. Its top-line for the quarter declined by 6.0% yoy to Rs590cr. 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%. Other income increased by 61.1% yoy to Rs20cr and consequently, the net profit remained flat at Rs36cr. 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 top-line and profitability. KOEL has expanded its capacity in the past and is positioned to successfully cater to improvement in demand once the operating environment changes in the longer run. KOEL also has taken measures to increase its focus on exports which should aid growth. Cash rich position: KOEL is a debt free company with cash and cash equivalents of approximately Rs835cr. With ample capacity in place, there is no major capex expected...

Kirloskar Oil Engine.. has an average target of 1310.50 from 2 brokers.

Is Kirloskar Oil Engines Ltd. worth buying?

141 Votes:

Buy 83.69%

Sell 6.38%

Hold 9.93%

RESEARCH REPORTS

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