Kirloskar Oil Share Price Jump 11% Amid Positive Valuation Outlook

Kirloskar Oil Engines share price surged 11.5% on the BSE, reaching an intraday high of ₹744.6. This marked the stock’s fourth straight day of gains, with an overall increase of more than 14% during the period.

At 11:48 AM on Wednesday, the stock was trading at ₹735.05, up 10.07%, while the BSE Sensex was up 1.19% at 75,049.01. Kirloskar Oil Engines’ market capitalisation stood at ₹10,670.12 crore. The stock’s 52-week high is ₹1,450, and its 52-week low is ₹544.15.

Stock Valuation 

Kirloskar Oil Engines share price is currently trading at a P/E ratio of:

• 23.2x for FY25
• 19.2x for FY26
• 15.6x for FY27

After adjusting for subsidiary valuations, the stock is at a 19.3x/16.0x/13.0x P/E for FY25/26/27, which is significantly lower than the industry leader.

Key Risks Identified

• Slowdown in demand
• Increased competition
• Higher costs in the B2C division
• Possible additional fund infusion in Arka Fincap
• Technological challenges

About Kirloskar Oil Engines Ltd (KOEL)

Kirloskar Oil Engines Ltd (KOEL) is a prominent Indian manufacturer of diesel engines, generators, and power solutions, known for its innovation and customer-centric approach. Established in 1927, the company specializes in producing air-cooled and liquid-cooled diesel engines and generator sets catering to multiple industries.

Over the last 12 months, Kirloskar Oil Engines share price have fallen 19.8%, while the Sensex has gained nearly 2%.

Conclusion

Kirloskar Oil Engines’ recent rally reflects investor optimism, but challenges like demand slowdown and competition remain. Investors should assess risks before making decisions.

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