Kirloskar Oil Eng Ltd.
ISIN: INE146L01010 • Market Cap: ₹30,297 Cr
The 5-Pillar Quality Audit for Kirloskar Oil Eng Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (17.5%), Return on Capital Employed (19.0%), and equity compounding (15.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.48 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.4%) and 3Y PAT CAGR (6.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 55.47 vs PEG of — and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 41.1%, backed by 37.3% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (37.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 37.3%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Capital Goods sector with an overall fundamental quality score of 64/100.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.48)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking KIRLOSENG against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 64/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare KIRLOSENG directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Kirloskar Oil Eng Ltd. (KIRLOSENG)Current | 64/100 | ₹30,297 Cr | 55.47 | 19.0% | 1.48 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Kirloskar Oil Eng Ltd.
Q:What is the 5-Pillar Fundamental Score for Kirloskar Oil Eng Ltd. (KIRLOSENG)?
Kirloskar Oil Eng Ltd. has a RupeeTools Fundamental Score of 64/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (71/100), Financial Health (60/100), Growth (62/100), Valuation (45/100), and Ownership Quality (78/100).
Q:Is KIRLOSENG fundamentally strong for long-term investment?
KIRLOSENG currently holds a moderate quality rating of 64/100. While it operates in the Capital Goods sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does KIRLOSENG pass the Coffee Can Investing filter?
Yes! KIRLOSENG satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does KIRLOSENG compare against other Capital Goods peers?
Within India's Capital Goods sector, KIRLOSENG trades at a P/E of 55.47 and generates an ROCE of 19.0%. Compare its 5-Pillar score of 64/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.