The Kirloskar Group is one of the leading business conglomerates in India, with a rich legacy that spans over a century. Founded by Laxmanrao Kashinath Kirloskar as a small bicycle repair shop in 1888, today Kirloskar is recognized as the leader in castings, diesel engine manufacturing, backup power solutions, pneumatic packages, and cooling solutions, serving as a cornerstone for various industries.
The group has a history filled with notable milestones. From developing the country’s first modern iron plough to being India’s first manufacturer of centrifugal pumps, the company has many "firsts" to its credit. Among these achievements are India's first diesel engine, electric motor, lathe or the specialised Concrete Volute Pump (CVP), according to the company's website.
Over the last one-year, five group stocks have rewarded their shareholders with significant returns. Kirloskar Brothers the flagship company of the Kirloskar Group, has emerged as the top performer in the group with a return of 191%. The company is a prominent player in the fluid management sector, specializing in pumps, valves, and related systems. KBL's solutions cater to various industries such as water supply, irrigation, power generation, and industrial processes. The company's order book in Q1FY24 stood robust at ₹3,020 crore, up 16% YoY.
Following the company's June quarter performance, domestic brokerage firm Axis Securities has maintained its 'buy' stance on the stock with a target price of ₹975 apiece, valuing the stock at 19x on its FY25 EPS given the company’s consistent performance in the last couple of quarters.
The brokerage recommendation is supported by robust improvements in the company’s order book, increased revenue contribution from the services segment, and restructuring of business activities resulting in improving ROE and ROCE (to 21% and 26.4%, respectively) and operating margins (by 190 bps to 12.6%) by FY25.
| Scrip Name | One-year return |
| Kirloskar Brothers | 191% |
| Kirloskar Oil Engines | 183% |
| Kirloskar Electric company | 155.5% |
| Kirloskar Industries | 151.5% |
| Kirloskar Ferrous Industries | 94% |
Kirloskar Oil Engines (KOEL), a leading manufacturer of diesel engines and diesel generator sets, has become one of the biggest wealth creators for investors in the last year. During this period, the stock climbed from around ₹176.20 apiece to the current position of ₹499, producing a staggering return of 183%.
In recent March, the Kulkarni family, a part of the promoter group of Kirloskar Oil Engines, sold an 18% stake in the company for ₹825 crore through block deals. However, despite this large sale, the stock price remained unaffected due to the strong demand from institutional investors.
The company has been dominating the power generator market for the last three decades. It offers the widest range of petrol and diesel power generating sets (2–1010 kVA) used for power backup in industrial, residential, and commercial establishments, as well as in special applications such as telecom.
Kirloskar Electric company, one of the leading Indian electrical engineering companies, was next on the list. The company shares over the last one-year time generated a massive return of 155.5%, spiking from ₹45.55 to ₹116.35. The company is engaged in the manufacturing of AC motors, DC motors, transformers, switchgear, and electronics through eight manufacturing units.
Kirloskar Industries was the fourth best-performing stock in the group. The company shares showed a remarkable performance, delivering a return of nearly 151.5% in the last one year. The company is engaged in the business of iron castings, investments (securities and properties), wind power generation, and real estate.
Another top performer in the group was Kirloskar Ferrous Industries. The company, which is one of the fastest-growing companies in the business of Pig Iron and Iron Castings, saw its shares grow steadily to ₹484 apiece from a trading price of ₹248 a year ago, producing a return of 94%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
