Kirloskar Oil Engines Ltd
India’s largest Industrial Engine manufacturer with over 40,000 engines manufactured annually.
India’s largest diesel Agri engines and pump sets manufacturer with over 1,45,000 units manufactured annually.
Products and Brands
Co. develops and offers indigenous engines for agriculture, Genset, and industrial off-highway equipment segments. Their range of products includes 2.5HP to 740HP engines to diesel gensets with a power output of 5kVA to 1,500kVA.
New Business and Products
1.In FY22, co. launched a High-Efficiency 3-Phase L.V. Electric Motor. In addition, co. introduced BS-IV engines in the industrial domain and the Organic Waste Composter (Kirloskar i-Land), the Company also released new products in the Power generation market, comprising the K4300 and R550 series.
2.The Co. had commenced financial service business through its subsidiary company viz. Arka Fincap Limited (previously known as Kirloskar Capital Limited) with effect from 24th April 2019. In FY22, co. invested 50 cr in the rights issue of AFL. Further, on 13th July 2021, it incorporated a WOS- Arka Financial Holdings, for enhancing strategic flexibility in the FS business. Co. invested 837 Cr towards the rights issue of this co. Co. also transferred all of its shares in Arka fin cap to AHFPL
3.The Co. engaged in a Business Association Agreement to create lightweight and compact DG sets for defense projects. In addition, the Co. won a large order for propulsion kits for inland water ferry boats and a refurbishment project
4.In FY22, step-down subsidiary co. Optiqua Pipes and Electricals acquired the business of pipes, cables & wires of Optiflex Industries, on a slump sale basis.
Revenue Mix FY22
Segment Wise:
Engines - 73%
Electric Pumps - 17%
Financial Services - 5%
Other Segments - ~5%
Other Segments include revenue from sales/business operations of farm equipment and spares.
Business Wise
Power Generating Business - 33%
Agriculture & Allied Business - 26%
Industrial Engine Business- 13%
Customer Support - 11%
International Business - ~8%
Large Engine Business - ~4%
Financial Services Business - 5%
Geographical Wise:
Domestic - 88%
Export - ~12%
General Notes
1. Healthy dividend paying stock
2. Last 2 QOQ growth is back to pre covid EPS returns with good sales
3. Though in business for pretty long time but ROI and ROE are meager 9% to 12%
4. Borrowings have increased 1X on YOY - Redflag
5. Cash is net negative - Redflag
6. However debtor days and Inventory cycle days have improved significantly YOY
7. Fii stake have been on decreasing trend. However it is going with DII instead of public shareholding which is littl bit better news for me
8. I WILL PREFER TO WAIT TO BUY THIS ONCE THIS CROSSES 270 RATHER THAN BUY THIS HERE AT CMP
India’s largest Industrial Engine manufacturer with over 40,000 engines manufactured annually.
India’s largest diesel Agri engines and pump sets manufacturer with over 1,45,000 units manufactured annually.
Products and Brands
Co. develops and offers indigenous engines for agriculture, Genset, and industrial off-highway equipment segments. Their range of products includes 2.5HP to 740HP engines to diesel gensets with a power output of 5kVA to 1,500kVA.
New Business and Products
1.In FY22, co. launched a High-Efficiency 3-Phase L.V. Electric Motor. In addition, co. introduced BS-IV engines in the industrial domain and the Organic Waste Composter (Kirloskar i-Land), the Company also released new products in the Power generation market, comprising the K4300 and R550 series.
2.The Co. had commenced financial service business through its subsidiary company viz. Arka Fincap Limited (previously known as Kirloskar Capital Limited) with effect from 24th April 2019. In FY22, co. invested 50 cr in the rights issue of AFL. Further, on 13th July 2021, it incorporated a WOS- Arka Financial Holdings, for enhancing strategic flexibility in the FS business. Co. invested 837 Cr towards the rights issue of this co. Co. also transferred all of its shares in Arka fin cap to AHFPL
3.The Co. engaged in a Business Association Agreement to create lightweight and compact DG sets for defense projects. In addition, the Co. won a large order for propulsion kits for inland water ferry boats and a refurbishment project
4.In FY22, step-down subsidiary co. Optiqua Pipes and Electricals acquired the business of pipes, cables & wires of Optiflex Industries, on a slump sale basis.
Revenue Mix FY22
Segment Wise:
Engines - 73%
Electric Pumps - 17%
Financial Services - 5%
Other Segments - ~5%
Other Segments include revenue from sales/business operations of farm equipment and spares.
Business Wise
Power Generating Business - 33%
Agriculture & Allied Business - 26%
Industrial Engine Business- 13%
Customer Support - 11%
International Business - ~8%
Large Engine Business - ~4%
Financial Services Business - 5%
Geographical Wise:
Domestic - 88%
Export - ~12%
General Notes
1. Healthy dividend paying stock
2. Last 2 QOQ growth is back to pre covid EPS returns with good sales
3. Though in business for pretty long time but ROI and ROE are meager 9% to 12%
4. Borrowings have increased 1X on YOY - Redflag
5. Cash is net negative - Redflag
6. However debtor days and Inventory cycle days have improved significantly YOY
7. Fii stake have been on decreasing trend. However it is going with DII instead of public shareholding which is littl bit better news for me
8. I WILL PREFER TO WAIT TO BUY THIS ONCE THIS CROSSES 270 RATHER THAN BUY THIS HERE AT CMP