Motilal Oswal upgrades Kirloskar Oil Engines to 'Buy'

Motilal Oswal has upgraded its recommendation for Kirloskar Oil Engines Ltd. to 'Buy' and set a price target of ₹1,150 per share, indicating a potential 76% increase. This follows improved demand in the power generation segment and stabilized operations in the B2C division. The brokerage expects industry volumes to rise to 36,000-38,000 units in Q4FY25, up from 32,000 in Q3FY25. Kirloskar aims to increase its share in mid to high-kVa ranges and plans to boost High Horse Power sales in the coming years. Despite short-term challenges in exports, Motilal anticipates a 14% annual revenue growth for Kirloskar's industrial segment from FY24 to FY27. The stock is currently trading at ₹666.90, down 35% this year.