Kirloskar Oil soars 18% on deal talks with Cummins Group

Shares of Kirloskar Oil Engines surged as much as 18 per cent and scaled their fresh 52-week high of Rs 450 in early trade on Tuesday after media reported that Cummins Group is in talk to buy a controlling stake in Kirloskar Oil Engines at over $500 million through one of its subsidiaries. Cummins Group is a manufacturer of engines and power generation products.

Shares of Kirloskar Oil Engines were trading 10.71 per cent up at Rs 421.80 at around 9.55 am (IST). The scrip opened at Rs 399 and touched a high and low of Rs 450 and Rs 399, respectively, eventually closing at Rs 414.65, up 8.83 per cent on Tuesday.

However, Cummins India later clarified that news published is a rumour and factually incorrect.


On the BSE, 0.36 lakh shares were traded in the counter so far, compared with average daily volumes of 5,806 shares in the past two weeks.

The stock hit a 52-week low of Rs 320 on December 23, 2016.

For the quarter ended September 30, 2017, Kirloskar Oil reported net sales of Rs 646.71 crore, down 2.64 per cent, against Rs 664.28 crore in the corresponding quarter last year. Net profit of the company dipped 29.80 per cent year-on-year to Rs 29.80 crore during the quarter under review.

It had posted a net profit of Rs 42.58 crore in Q2FY17.