Buy Kirloskar Oil Engines Says Motilal Oswal, Sees 38% Upside, Revises Target Price

Motilal Oswal continues to reiterate Buy on Kirloskar Oil Engines as it expects it to benefit from improved sales from higher HP segments, exports, and improving trajectory of the B2C segment.

Kirloskar Oil is ready for the CEV5 norm shift in the industrial segment from January 2025 onwards and is gradually increasing its presence in export markets.

Representational image: Staff at Kirloskar Oil Engines Ltd.'s manufacturing plant. (Source: Company website)

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Motilal Oswal Report

Kirloksar Oil Engines Ltd. is currently trading at 34x/26x/20x FY25E/26E/27E earnings. Adjusted with subsidiary valuation, the stock is trading at 31x/23x/18x FY25E/26E/27E earnings per share, which is still at a 45-50% discount to the market leader.

We continue to reiterate Buy on Kirloskar Oil Engines as we expect it to benefit from improved sales from higher HP segments, exports, and improving trajectory of the B2C segment.

Key risks and concerns

Demand slowdown, competitive intensity, higher costs for B2C division, the risk of further fund infusion in Arka Fincap, and technology risks are the key risks for Kirloskar Oil Engines.

Click on the attachment to read the full report:

Motilal Oswal Kirloskark Oil Update.pdf
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Also Read: Mankind Pharma Approves Share Sale Worth Rs 3,000 Crore To Institutions To Pare Debt

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