The special research section of NDTV Profit compiles comprehensive and high-quality stock and economy research reports from leading brokerages, asset managers, and research firms in India. These studies give subscribers to NDTV Profit the chance to learn more about businesses, industries, and the economy.
The Motilal Oswal Report
Motilal Oswal reaffirmed its “Buy” recommendation on Kirloskar Oil Engines Ltd., noting several growth drivers across the powergen, industrial, and export categories as well as a robust order pipeline. As a result, shares of the company are expected to be in focus.
In addition, the broking upgraded its target price to Rs 2,750, citing confidence in execution and demand visibility, and increased its profit forecasts for FY27 and FY28 by 3% and 10%, respectively.
The market is still optimistic about the general state of demand in the industries where Kirloskar Oil presently operates, including power generation, industry, and even exports. The company is also benefiting from a recent significant order win from one of the hyperscalers, which will be finished this fiscal year. The timely and successful fulfilment of this order, according to Motilal Oswal, will create prospects for other data center projects.
As noted in the brokerage’s earlier statement, the company’s ongoing capital expenditures will also allow it to profit from the robust demand in the powergen and industrial markets.
Over time, the company’s efforts to produce new products will also pay off.
With a new target price of Rs 2,750, Motilal Oswal has maintained Buy.
Important dangers and issues
The company’s overall profitability could be negatively impacted by any downturn in demand in important segments, fierce rivalry from other companies, and an increase in material prices.
FAQs: Kirloskar Oil Engines & Motilal Oswal Report
1. Why is Kirloskar Oil Engines in focus today?
Kirloskar Oil Engines is in focus after Motilal Oswal reaffirmed its ‘Buy’ rating and raised its target price, citing multiple growth drivers across the power generation, industrial, and export businesses.
2. What is Motilal Oswal’s revised target price for Kirloskar Oil Engines?
Motilal Oswal has increased its target price for Kirloskar Oil Engines to ₹2,750 per share while maintaining its ‘Buy’ recommendation.
3. Why did Motilal Oswal remain bullish on Kirloskar Oil Engines?
The brokerage highlighted a strong order pipeline, healthy demand in power generation and industrial segments, export opportunities, ongoing capital expenditure, and new product development as key growth drivers.
4. How has Motilal Oswal revised its earnings estimates?
Motilal Oswal has increased its FY27 profit estimate by 3% and FY28 profit estimate by 10%, reflecting confidence in the company’s execution and future demand.
5. What role do data center orders play in the company’s growth?
Kirloskar Oil Engines recently secured a significant order from a hyperscaler. Successful execution of this project is expected to improve its chances of winning additional data center contracts.
6. Which business segments are driving Kirloskar Oil Engines’ growth?
The company’s key growth areas include:
- Power generation (PowerGen)
- Industrial engines
- Export business
- Data center power solutions
7. What are the key risks highlighted by Motilal Oswal?
According to the brokerage, major risks include:
- Weak demand in key business segments
- Rising raw material costs
- Intense competition from industry peers
- Execution-related challenges
8. Is Kirloskar Oil Engines considered a good long-term investment?
Motilal Oswal believes the company offers attractive long-term growth potential due to its strong order book, expanding capacity, improving ear
