Export and distribution segments growing well

12 Mar 2024
5 Min read 
  • Kirloskar Oil Engines (KOEL) reported 3QFY24 results ahead of estimates with growth in revenue, EBITDA, and PAT.
  •  The B2B segment, driven by industrial, distribution, and export segments, contributed to revenue growth.
  •  The powergen segment's growth was impacted by a high base, but sales for 9MFY24 grew at a healthy pace.
  •  The B2C segment's growth was driven by water management solutions.
  •  KOEL is expected to benefit from strong demand across segments and is focusing on growing exports by penetrating more markets.
  •  Margin estimates have been revised upward to factor in improving trends in exports and distribution.
  •  The stock is currently trading at a discount to Cummins and is expected to narrow in the future.
  •  The TP has been revised to INR940, and the stock has a BUY rating.
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