KIRLOSENG - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.2

📈 Kirloskar Oil Engines is technically strong with solid fundamentals and institutional support, making it a favorable swing trade candidate.

🎯 Optimal Entry Price: ₹995–₹1,010

🚪 Exit Target (if already holding): ₹1,060–₹1,085

🔍 Positive

• 📈 MACD at 28.5 indicates strong bullish momentum.
• 📈 RSI at 69.8 suggests strength, nearing breakout territory.
• 📈 Price above both 50 DMA and 200 DMA (₹926 and ₹903), confirming a strong uptrend.
• 📈 ROCE of 18.4% and ROE of 14.3% reflect efficient capital utilization.
• 📈 Debt-to-equity ratio of 0.06 indicates a low-leverage, financially sound company.
• 📈 DII holding increased by 0.79%, showing growing domestic institutional confidence.

⚠️ Limitation

• 📉 P/E of 36.4 is slightly below industry average (39.8), but still high for its growth rate.
• 📉 RSI nearing 70 may lead to short-term overbought conditions.
• 📉 PEG ratio of 1.00 suggests fair valuation, not deeply undervalued.
• 📉 Dividend yield of 0.64% is modest for income-focused investors.

📉 Company Negative News

• 📉 FII holding declined by 0.13%, reflecting slight foreign investor caution.
• 📉 QoQ PAT declined by 8.85% (₹123 Cr vs ₹106 Cr), indicating margin pressure.

📈 Company Positive News

• 📈 EPS of ₹28.9 supports strong earnings visibility.
• 📈 DII inflows and above-average volume (5.62L vs 4.68L) suggest renewed domestic interest.
• 📈 Stock trading near 52-week high (67.8% index) reflects positive sentiment.

⚙️ Industry

• ⚙️ Industrial engines and power generation benefit from infrastructure growth, manufacturing expansion, and rural electrification.
• 📉 Risks include raw material cost volatility, regulatory changes, and cyclical demand patterns.

✅ Conclusion

• 📈 Kirloskar Oil Engines is a strong swing trade candidate with bullish technicals, solid fundamentals, and institutional support.
• 🎯 Entry near ₹995–₹1,010 with exit around ₹1,060–₹1,085 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin trends and export growth for sustained upside.

I can also compare Kirloskar Oil Engines with Cummins India or Greaves Cotton to help you identify stronger swing setups in the industrial engine segment.