Kirloskar Oil surges 20% to hit 52-week high after huge block deal; Kulkarni family likely seller

Over 25 million equity shares of Kirloskar Oil, representing 17.7 per cent of total equity, changed hands in nine large trades on the NSE today in a block deal valued at ₹825.06 crore, according to the exchange data.

The block deal was executed in the first session, between 08:45 am and 09:00 am. The names of the buyers and sellers could not be ascertained immediately.

However, as per ET NOW, the Kulkarni family likely offloaded stake in the firm. A clutch of domestic insurance companies and mutual funds have bought the shares, the report added.

As on 31 December last year, promoter & promoter group held 85.96 million shares (59.42 per cent stake) in KOEL, the shareholding pattern data shows.

The stock surpassed its previous high of ₹371.65, hit on 18 November last year. It is up 23.8 percent so far in 2023. In the last one year, the KOEL shares have surged 200 per cent as compared to 12 per cent rise in the S&P BSE Sensex.

Three analysts tracking KOEL, a flagship company of the Kirloskar Group, have maintain a ‘buy’ rating on the stock, according to a Bloomberg report. The 12-month consensus price target implies an upside of 13 per cent.

“Kirloskar Oil has been consistently performing well since the last two-three quarters, driven by a robust demand. Further, changes at the top management and the company’s focus on pursuing various growth opportunities have been yielding satisfactory results. We maintain our positive view on KOEL as we expect the growth momentum to continue, given sustained demand across business verticals and expansion of product range,” said brokerage house Sharekhan in its latest report.