Buy Kirloskar Oil Engines; target of Rs 840: Motilal Oswal

Motilal Oswal is bullish on Kirloskar Oil Engines recommended buy rating on the stock with a target price of Rs 840 in its research report dated January 09, 2024.

Broker Research

January 10, 2024 / 12:00 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Kirloskar Oil Engines

We continue to remain positive on Kirloskar Oil Engines due to its strong product portfolio within the powergen segment across CPCB 2, CPCB 4+, and fuel agnostic engines. Additionally, the company’s strategic focus on expanding its aftermarket and exports bodes well for long-term growth. While competition in the powergen segment is increasing, the market for CPCB 4+ compliant products is likely to be influenced by players offering a wide range within this category, coupled with a strong distribution network. Unlike the last shift in emission norms, we do not expect a sharp price correction due to much better demand and strong market positioning of key players. KOEL is positioned well in both powergen and industrial markets and is ramping up its distribution and export portfolio. KOEL has a potential to re-rate further from current levels on better than expected growth in exports, higher share of HHP genset sales as well as further ramp up in distribution portfolio.

Outlook

We reiterate BUY on KOEL with a target price of INR840 based on SOTP methodology valuing core business at 20X March, 26 earnings.

For all recommendations report, click here