KIRLOSENG - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials & Profitability

Profit Trends: Quarterly PAT rose from ₹106 Cr to ₹123 Cr, despite a reported −8.85% variation, likely due to seasonal or margin adjustments. EPS of ₹28.9 is solid for a ₹941 stock.

Return Metrics

ROE: 14.3% and ROCE: 18.4% — strong indicators of capital efficiency.

Debt Profile: Debt-to-equity at 0.06 — extremely low, offering financial resilience.

Dividend Yield: 0.69% — modest, but consistent with shareholder returns.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 33.8 Reasonable vs. industry PE of 44.8.

P/B Ratio ~4.59 Slightly elevated relative to book value ₹205.

PEG Ratio 0.93 Attractive — growth is fairly priced.

🔍 Conclusion: Kirloskar Oil Engines is moderately valued with strong fundamentals and low debt. PEG ratio supports long-term upside potential.

🏭 Business Model & Competitive Edge

Core Operations: Kirloskar Oil Engines manufactures internal combustion engines, gensets, pump sets, and farm mechanization equipment.

Strategic Strengths

Delivered 774.5% returns over 5 years

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Quarterly revenue growth of 6.0% with a 7.9% profit margin

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Institutional ownership at 43%, with top 8 shareholders holding 52% — indicating strong market confidence

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Growth Outlook

Analysts forecast 2025 targets between ₹891 and ₹909, with stop-loss levels around ₹837–₹855

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1-year price target upside estimated at 36%, with a consensus target of ₹1,180

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📉 Technicals & Entry Zone

RSI: 58.9 — neutral, slightly bullish.

MACD: 2.94 — positive momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — trend strength confirmed.

📌 Suggested Entry Zone: ₹900–₹930 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and institutional backing support long-term value.

Buy on Dips: Prefer entry near ₹900, especially if RSI cools below 55.

Monitor: Export volumes, margin trends, and farm equipment demand.

You can explore Simply Wall St’s ownership breakdown

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, StockPriceArchive’s technical targets

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, and Trendlyne’s analyst forecast

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for deeper insights. Let me know if you'd like a peer comparison with Elgi Equipments or Kirloskar Brothers next.

1

stockpricearchive.com

2

simplywall.st

3

trendlyne.com

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