Motilal Oswal's research report on Kirloskar Oil Engines
Kirloskar Oil Engines’ (KOEL) 1QFY26 result was above our expectations, driven by higher growth in the powergen segment and improved margin. Genset demand has been recovering in key segments and the B2C segment for KOEL too has now stabilized. KOEL’s strategy of focusing on higher-margin products seems to be getting reflected in better margins. We expect the company to keep focusing on 1) increasing HHP sales in overall powergen, 2) growing its industrial segment with entry into new areas, and 3) continued focus on distribution and export markets. We maintain our estimates and roll forward our TP to Sep’27E earnings to INR1,230, based on SoTP methodology. We reiterate our BUY rating on the stock.
Outlook
We reiterate our BUY rating and roll forward our TP to Sep’27E earnings to INR1,230, based on SoTP methodology.
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