Kirloskar Oil shares soar 14% on block deals; Kulkarni family likely seller, says a report

Shares of Kirloskar Oil Engines jumped 14 per cent in Wednesday's trade amid block deals on the counter. As per NSE, a total of 2,56,22,987 Kirloskar Oil shares changed hands today in a block deals valued at Rs 825.06 crore. The scrip rose 14.42 per cent to hit a high of Rs 371.95 on NSE. Against sell orders of 3,51,871 shares, there were buy orders of 8,68,951 shares on the counter.

As per ET NOW, the Kulkarni family likely offloaded stake in the company. A clutch of domestic insurance companies and mutual funds have bought the shares, ET NOW reported.

Kirloskar Oil had reported a net profit of Rs 68.2 crore for March quarter, up 170 per cent YoY over Rs 25.30 crore in the year-ago quarter. Revenue for the quarter was up 20 per cent at Rs 1,000.10 crore compared with Rs 836.90 crore in the same quarter last year. Ebitda margin for the quarter came in at 10.9 per cent against 6.1 per cent YoY.

Kirloskar Oil is engaged into manufacturing of engines, farm equipment and generator sets with a sizable presence in international markets. It also manufactures diesel engines for construction equipment. It specialises in manufacturing air-cooled and liquid-cooled engines for diesel generator sets across a wide range of power outputs (2kVA to 1500 KVA).

In its earnings update, the company said it saw strong demand in the domestic markets, aided by infrastructure spends, easing of commodity inflation and an overall buoyant economy.

"Changes in the rainfall pattern during this monsoon season resulted in a change in the demand patterns in the pumps segment. In the international markets, while there was an overall softening in the market, KOEL delivered strong results by focusing on the right product mix and the right geographies. From an immediate to medium term outlook standpoint, we see strong market demand, but uncertainties remain over inflation, supply chain disruptions and geo political dynamics," it said.

Also read: Sensex at 70,000 by year-end, says Julius Baer Asia Research Head

Also read: Sensex drops 300 points, Nifty below 17,700; TechM, Infosys, Wipro shares lead losers