Hello All and Welcome Back again ...
Markets are Rising and Doing Great in Last Few Weeks irrespective of the expectations of retail and the experts about a Pullback, Retracement or a Correction. The Markets are not in a Mood to Stop anytime soon, making New Highs Daily. Most of the Global Markets have given Breakouts and Stocks are also following the overall sentiments.
In a Similar Pattern Found a Group of Companies which is going to be a Performer in coming Months. The stocks are breaking Out and the Interesting fact is they are not far from the breakout levels, so we haven't missed anything yet and there might be a Chance of Low Risk, High Returns Kind of Investment in these stocks for a Mid term view of Next 12-18 months. If Everything goes right we may see them become Multi Baggers in a short period of time.
This group is a Old Industrial Group and Known to most of the traders and Investors, considered to be one of the pioneers in Engineering Industry in India.
The Group Name is :
KIRLOSKAR GROUP
The Kirloskar group of companies was one of the earliest industrial groups in the engineering industry in India. The group produces Centrifugal Pumps, Engines, Compressors, Screw & Centrifugal Chillers, Lathes and Electrical Equipments like Electric Motors, Transformers and Generators. While Laxmanrao Kirloskar, established the group in 1888, his son Shantanurao Laxmanrao Kirloskar played a role in the leadership of the company. The company under Shantanurao Laxmanrao Kirloskar achieved one of the highest growth rates in Indian history, with 32,401% growth of assets from 1950–1991.
In 1988, Rajiv Gandhi, the then Prime Minister of India released a commemorative stamp marking the Kirloskar Group's 100th anniversary.
The Kirloskar Group also set up India's Second Oldest Township Kirloskarwadi in Maharashtra, which is now a 100-year-old Township in 2010.
Kirloskar Companies
Kirloskar Brothers Ltd
Kirloskar Brothers Limited (which includes Kirloskar Brothers Ltd., SPP Pumps (UK), Kirloskar Ebara Pumps Ltd., Braybar Pumps Ltd., (South Africa) and Kolhapur Steels Ltd. Kirloskar Brothers produces Centrifugal pumps from 0.1 kW to 26 mega-watts single pumps, pumping liquids in excess of 35,000 liters/sec thus producing some of the largest pumps by size and horsepower. Kirloskar Brothers Limited was established in 1888.
Kirloskar Oil Engines Limited
KOEL manufactures air-cooled and liquid-cooled diesel engines and generating sets ranging from a power output of 2.1 kW to 1010 kVA and solutions ranging up to 5200 kVA. They also offer engines operating on alternative fuels such as Bio-Diesel, Natural Gas, Bio Gas and Straight Vegetable Oil (SVO). Their generating sets are branded as KOEL Green Gensets.
Kirloskar Pneumatic Company Limited
KPCL has four strategic business units, namely, Air Compressor Division (ACD), Air Conditioning and Refrigeration Division (ACR), Process Gas Systems Division (PGS) and Transmission Division (TRM).
ACD offers Air and Gas Compressors from 30 to 10,000 CFM rated capacities; Open-Type Refrigeration Compressors (50 to 500 TR), Vapor Absorption Chillers (90 to 500 TR) and Refrigeration Systems (up to 800 TR).
KPCL offers CNG packages with suction pressure of 0.5 to 65 bar and gas flow of 300 to 3,500 SCMH, American Petroleum Institute (API) gas compression packages range from 50 CFM to 6000 CFM. The company also offers wind turbine gearbox ranging from a rated capacity of upto 2.5 MW and industrial gearboxes rated upto 16 MW.
Kirloskar Ferrous Industries Limited
Produces pig iron and grey iron castings for the automotive industry
Kirloskar Chillers Private Limited
Produces centrifugal chillers from 250 TR to 2400 TR and air-cooled and water-cooled screw chillers from 40 TR to 550 TR for air conditioning and process cooling applications. It also offers products for hot water generation including chillers with desuperheaters & heat pumps.
Established in 1995, Kirloskar Chillers is the largest chiller manufacturer in India,[citation needed] and the first to have its products certified under the AHRI 550/590 certification program.[citation needed] The factory at Saswad, near Pune, also has the first AHRI-certified chiller test facility in India.[citation needed] It is also the only Indian company to manufacture centrifugal & screw chillers under one roof.
Toyota Kirloskar Motor Private Limited (TKML)
produces Toyota vehicles in India
Mysore Kirloskar Ltd (MKL) used to produce lathes including CNC type machines which was run by Vikram Kirloskar.
Kirloskar Electric Company (KEC) made electrical equipment like transformers, generators and motors, etc. It is not part of the Kirloskar Group anymore.
Kirloskar Institute of Advanced Management Studies (KIAMS) was conceived in 1991 as a training institute and a knowledge hub where Kirloskar Group managers taught and learned management. In 1995, the training institute was opened to managers all over the country.
Achievements
Kirloskar Brothers Ltd created the world's largest irrigation project, which was commissioned in March 2007, the Sardar Sarovar Dam project for the Gujarat Government. This was done for Sardar Sarovar Narmada Nigam, and on 14 March 2008, commissioned the world's second largest water supply system, with the world's highest head in Andhra Pradesh. Kirloskar Brothers is associated with India's nuclear program and has made canned motor pumps for pumping heavy water which are deployed at Indian Nuclear Power Plants. Kirloskar Brothers Limited is also a supplier of FM UL certified pumps along with its subsidiary SPP Pumps (UK). It was the first Indian company to get FM certification for its valves. Kirloskar Brothers has a presence in numerous countries including Egypt.
Kirloskar Brothers Ltd is also one of the first pump companies to have an all women operated and managed manufacturing plant at Coimbatore, Tamil Nadu. The company was one of the country's top ten wealth creators in 2007.
Kirloskar Brothers Ltd won the first "best of all" Rajiv Gandhi National Quality Award in 1992.
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WE WILL SEE FEW COMPANIES LISTED ON STOCK EXCHANGES AND THE TECHNICAL ANALYSIS FOR PRICE EXPECTATIONS :
1) KIRLOSKAR INDUSTRIES LTD.
Kirloskar Industries is engaged in wind-power generation and manufacturing of iron castings.
Market Cap : ₹ 773 Cr. Current Price : ₹ 790 High / Low : ₹ 874 / 355
Stock P/E : 5.06 Book Value : ₹ 1,306 Dividend Yield : 1.27 %
ROCE : 15.3 % ROE : 12.6 % Face Value : ₹ 10.0
Pros For Investment in the Stock :
Stock is trading at 0.61 times its book value
Company has been maintaining a healthy dividend payout of 25.16%
Let's See On Charts
This is a Monthly Chart of Kirloskar Industries Ltd.
As We can See The Price is in Uptrend on a Longer Term Scale and Since Last 16-17 Years Price is moving along a Steady Rising Trend Line Taking Support Occasionally on the Trend Line. Again in Last Few Months, The Stock has Taken Support on the Rising trend Line in March Lows and Bounced Back. Earlier The Stock was in Continuous Down Trend For a Couple of years after making a High above 1700 levels. In March 2020, The Stock hit a Low of around 355 and Started Rising Back to Normal Levels. In an attempt to Rise Higher during the Stock Market reversal in following Months, The Stock Tried to Break Our from the Falling Trend and Succeeded to Breakout but Faced Strong Resistance around 702 levels for a Few Months, Consolidated after Breakout from falling trend and then again did a Breakout this Month above the 702 Resistance level. Stock is trading around 790 levels currently and it's a clear Buy on Dips Candidate in case Market Corrects in Near Future.
Let's Move on to a Smaller Time Frame Chart :
This is a Weekly Chart and We May See How Price has Taken Support during the March Lows and Then in an attempt to Breakout from Falling Trendline, the Stock has Formed a Bullish Inverted Head & Shoulder Pattern. The Pattern has a Neckline around 745 zone, Now Trading around 790 area, Which means the Stock is Still Near the Breakout Zone and It will be Interesting to watch or Invest in the Stock, Looking at the Breakout Target of the Inverted Head and Shoulder Pattern, The Breakout Target is around 250-300 Rs. from the Breakout level. The Resistance on Chart is Exactly Matching with Our Breakout Target. So I will be Very much Interested in Seeing the Price 1045 in Immediate Future and Then 1345-1715 levels in Coming months as the Manufacturing and Agricultural Growth is my area of Interest for Near Future in Indian Markets.
So The Recommendation here is :
KIRLOSKAR INDUSTRIES LTD.
Current Market Price : 790
Buy at 790 and On Dips To 740
Stoploss : 640
Targets : 1045 - 1345 - 1645 - 1715
Risk : Reward is Good, Follow Risk management before Entry !!
2) KIRLOSKAR OIL ENGINES LTD.
Kirloskar Oil Engines is engaged in the business of manufacturing of engines, generating sets, pump sets and power tillers and spares thereof.
Market Cap : ₹ 1858 Cr. Current Price : ₹ 128 High / Low : ₹ 159 / 70
Stock P/E : 12.2 Book Value : ₹ 124 Dividend Yield : 3.11 %
ROCE : 11.9 % ROE : 9.30 % Face Value : ₹ 2.0
Pros For Investment in the Stock :
Stock is trading at 1.04 times its book value
Company has been maintaining a healthy dividend payout of 38.66%
Let's See the Chart :
This is a Weekly Chart and We are Seeing a Long Down Trend in the Stock, For more than 3 Years. The Stock Started Correcting from somewhere around 500 and Reached a Low of 70 in March 2020. After hitting the Lows, Stock Tried bounce Back and a strong Market Bounce Pushed the Stock Higher, The Stock Struggled Near the Long falling Trend Line Resistance and Then somehow Managed to Breakout from the Falling trend After a Long Wait for the Investors. 98 Was the Strong Support zone which was respected during this period and on Higher Side we have seen 118 levels to be working as a Strong Resistance. The Price is Trading at 128 now, considerably Higher from the Resistance zone and Now We may Expect a good Rally in the Stock Price after the Successful Breakout. I expect the Stock to give Considerably Good Returns in Coming Months, if my readings are not Wrong. Either Way for a Nice Reward, One Must Take Smaller Risks.
So The Recommendation here is :
KIRLOSKAR OIL ENGINES LTD.
Current Market Price : 128
Buy at 128 and On Dips To 118
Stoploss : 105
Targets : 141 - 199 - 266 - 299
Risk : Reward is Good, Follow Risk management before Entry !!
3) KIRLOSKAR BROTHERS LTD.
Kirloskar Brothers is engaged in providing fluid management solutions globally.
Market Cap : ₹ 1024 Cr. Current Price : ₹ 129 High / Low : ₹ 181 / 76
Stock P/E : 11.1 Book Value : ₹ 119 Dividend Yield : 1.94 %
ROCE : 12.3 % ROE : 7.74 % Face Value : ₹ 2.0
Pros For Investment in the Stock :
Stock is trading at 1.08 times its book value
Company has been maintaining a healthy dividend payout of 212.73%
Cons for The Investment in the Stock :
The company has delivered a poor growth of 2.94% over past five years.
Company has a low return on equity of 4.50% for last 3 years.
Contingent liabilities of Rs.348.65 Cr.
Let's See the Chart :
This is a Weekly Chart, We Can See the Long Term Down Trend in the Stock started somewhere in Mid 2017 and almost hit the Lows during the March 2020 Crash. The Stock Bounce Back from the Lows, Tried to breakout from the Longer term Falling Trend line and Somehow Managed to Breakout but again Struggling Near the Trendline. It's a Kind of Breakout Retesting area. The Stock is Managing to Maintain it's breakout Status somehow. For Me The Stock can be a Good Buy candidate with a Smallest Risk and Great Potential towards higher side.
So The Recommendation here is :
KIRLOSKAR BROTHERS LTD.
Current Market Price : 129
Buy at 129 and On Dips To 118
Stoploss : 112
Targets : 146 - 199 - 244 - 299
Risk : Reward is Good, Follow Risk management before Entry !!
Market Cap : ₹ 95.3 Cr. Current Price : ₹ 14.4 High / Low : ₹ 19.7 / 6.95
Stock P/E : 5.6 Book Value : ₹ -11.6 Dividend Yield : 0.00 %
ROCE : 0.95 % ROE : --- % Face Value : ₹ 10.0
Pros For Investment in the Stock :
Company Has Reduced DEBT.
Cons for The Investment in the Stock :
Company has low interest coverage ratio.
The company has delivered a poor growth of -9.23% over past five years.
Promoters have pledged 84.40% of their holding.
Earnings include an other income of Rs.69.05 Cr.
Company's cost of borrowing seems high
In Short This is a Purely Gamble on the basis of Price Charts.
Let's See the Chart :
This is a Weekly Chart. We Wish to Be Very Clear in Analysis of this Stock, The Fundamentals are not good and We are betting on this Pick purely on the basis of Price Charts. If anyone wants to Follow us, it's a Pure Gamble trade and The Risk has to be Considered before Entering the Stock.
The Chart Shows us a Long term Down Trend similar to Earlier Chart. The Stock hit Lows around 7 and Reversed, It's almost a Double Bottom in Place near the Same area, so in Future the Risk is very Much controlled near the same area. The Stock is consistently rising from last few weeks and We can see a breakout from the falling trendline and a Longer Term breakout from the Down Trend. The Price is sustaining above the falling Trend Line and is trading above the previous resistance area of 13.70 comfortably indicating any dips towards the area will be absorbed by the Buyers and We may see Buying Interest in this area. Sustaining above 13.70, Next Resistance zone is at 22 and then 33 - 44 levels. According to Charts, We may Buy this Stock For a Complete Gamble trade with a Small Risk and hold it for a Few Months and Let the Euphoria Take the Stock on Higher Levels.
So The Recommendation here is :
KIRLOSKAR ELECTRIC COMPANY LTD.
Current Market Price : 14.4
Buy around 14-14.50
Stoploss : 11
Targets : 22 - 33 - 44
Risk : Reward is Good, Follow Risk management before Entry !!
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