Kirloskar Oil Engines Ltd. (KOEL) saw its shares rise 3% today after Motilal Oswal raised its target price to ₹1,150, citing strong growth potential. The brokerage reiterated a “Buy” rating, expecting more than 70% upside in the stock.
As per Motilal Oswal, the company is well-positioned in the power generation (powergen) market, with sequential improvements in demand. Industry volumes for Q4 are projected at 36,000-38,000 units, up from 32,000 in Q3. KOEL is actively increasing its market share in the high-kilovolt-ampere (kVa) segment, aiming for a 400-500 basis points (bps) increase in High Horse Power (HHP) sales over the next 1-2 years. Analysts expect powergen revenues to see substantial growth from FY26 onwards.
In the industrial segment, Kirloskar Oil Engines is poised for a robust 14% revenue CAGR from FY24 to FY27, fueled by new product launches and expansion into construction and infrastructure. The company’s strategic focus on high-growth sectors is expected to drive long-term profitability. Despite its strong growth trajectory, Kirloskar Oil Engines continues to trade at a significant discount compared to the market leader.
Kirloskar Oil Engines Ltd’s stock opened at ₹659.95, reaching a high of ₹674.85 and a low of ₹647.50. The company’s 52-week high stands at ₹1,450.00, while the 52-week low is ₹544.40.
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