For more than 130 years, the Kirloskar Group has been good at doing great things and coming up with new ideas. Back in 1888, when everyone else was thinking about the past, there was one person who was thinking about the future. He started a kind of revolution in India’s factories, and he did it from a small bicycle shop, making India’s very first iron plough.
Today, the company is known as a leader in castings, diesel engine manufacturing, backup power solutions, pneumatic packages, and cooling solutions, and it serves as the foundation for several industries.
The company’s operations span agriculture, manufacturing, food and beverage, oil and gas, infrastructure, and real estate. What fundamentally drives the sustainability and profitability of these enterprises can be primarily attributed to the deeply ingrained values that underpin their very foundation.
The Kirloskar Group was established by Laxmanrao Kashinath Kirloskar, born on June 20, 1869, to a Maharashtrian family in the village of Gurlahosur, which was part of the Belgaum district in the former Bombay Presidency.
In this article, we will delve into the scenario where someone invested Rs 1 lakh in each company within the Kirloskar Group’s stock over the past three years. The results are truly astounding in terms of returns.
| Company Name | CMP Rs | M Cap Rs in Cr | 3 Years Return % | Investment Rs | Investment Value Rs |
| Kirloskar Electric | 117.3 | 779.6 | 973.1 | 1,00,000 | 10,73,130 |
| ISMT | 73.9 | 2,220.1 | 770.2 | 1,00,000 | 8,70,150 |
| Kirloskar Brothers | 891.0 | 7,075.4 | 755.7 | 1,00,000 | 8,55,740 |
| Kirloskar Ferrous | 467.1 | 6,491.9 | 451.1 | 1,00,000 | 5,51,120 |
| Kirloskar Oil | 546.2 | 7,912.7 | 441.4 | 1,00,000 | 5,41,370 |
| Kirloskar Pneumatic | 600.0 | 3,878.1 | 412.7 | 1,00,000 | 5,12,720 |
| Kirloskar Industries | 3,017.0 | 2,982.9 | 396.2 | 1,00,000 | 4,96,220 |
| Total Investment and Investment value | 7,00,000 | 49,00,450 | |||
Based on the data mentioned above, all the companies within the Kirloskar Group have delivered impressive multibagger returns over the past three years. What’s notable is that these stocks required investors to have faith in the group’s performance. Those who placed their trust and stuck with the companies through both good times and challenging periods have been rewarded with remarkable returns, some even approaching 400%.
The highest return was achieved by Kirloskar Electric, a company involved in the production of AC Motors, DC Motors, Transformers, Switchgear, and Electronics. Despite being relatively smaller in terms of market capitalization at Rs 779 crore compared to other group companies, it offered an astonishing return of 973% to its investors over the last three years.
Conversely, the lowest return came from Kirloskar Industries, which still provided a noteworthy return of 396%. When compared to stocks from other groups, this performance is quite commendable. Kirloskar Industries has a market capitalization of Rs 2,982 crore.
In conclusion, if someone had invested Rs 7 lakh in these companies, allocating Rs 1 lakh to each of them, three years ago, the current value of their investment would be approximately Rs 49 lakh. This represents a significant growth, as the investment has multiplied by 7 times its original value.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
