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KIRLOSENG · Industrials ₹2192.0 -3.03% Mkt Cap ₹31882 Cr overvalued

KIRLOSENG

Industrials Specialty Industrial Machinery
₹2192.0
-3.03% today · 30d -2.01%
as of 2026-09-04
Price · Daily Candles
“Kirloskar Engines revs up with 142.93% annual surge, but valuation metrics signal caution.”
Kirloskar Engines (KIRLOSENG) demonstrated strong financial performance with a 21.29% annual revenue growth and 18.21% net profit growth for FY26. However, its current P/E of 55.24 and P/B of 8.68 suggest a stretched valuation compared to its intrinsic value of ₹1350.68 per share, indicating a -39.6% margin of safety.
BULL CASE
+Annual revenue increased by 21.29% to ₹7701 Cr in FY26, alongside a 18.21% rise in net profit to ₹562 Cr.
+Quarterly revenue grew 20.73% YoY to ₹2116 Cr with net profit up 22.65% to ₹155 Cr for Q4 FY26.
+The stock has delivered strong returns, up 142.93% over the last year and 96.15% in the last six months.
+Promoter shareholding remains stable at 41.07% with FIIs increasing their stake by 0.54% QoQ to 11.33%.
BEAR CASE
The stock is currently overvalued, with a -39.6% margin of safety relative to its intrinsic value of ₹1350.68.
Its P/E ratio of 55.24 is elevated, and the P/B ratio stands at 8.68, indicating a premium valuation.
Despite strong growth, DIIs reduced their stake by 0.69% QoQ to 26.0% in the latest quarter.
The ROCE of 15.0% is lower than some peers like ABB (30.29%) and Cummins India (37.19%).
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹2000 Cr
+13.36% YoY
NET PROFIT
₹111 Cr
-20.05% YoY
OPM
15.66%
-4.43pp YoY
EPS
₹7.82
PE 55.24
Intrinsic value · DCF ₹853.67 · Margin of safety -61.1% (overvalued) · FCF yield 1.86%
◇ Sector Position
Kirloskar Engines trades at a P/E of 55.24 and ROCE of 15.0%, positioning it below top-tier peers like ABB (P/E 58.99, ROCE 30.29%) and Cummins India (P/E 63.48, ROCE 37.19%).
PEERPEROCE %
KIRLOSENG55.2415.0
ABB58.9930.29
CUMMINSIND63.4837.19
BHEL88.794.83
+ 2 more peers — sign in to view
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72
SCORE / 100
Overall
6-axis composite of the sections below.
Performance STRONG 100
Valuation STRETCHED 20
Growth STRONG 74
Profitability HIGH 78
Technicals STRONG 77
Risk LOW 80
Key Stats
TTM PE
55.24
P/B
8.68
52W HIGH
₹2720.0
OFF HIGH
-19.41%
DIV YIELD
0.31%
MKT CAP
₹31882 Cr
◉ Active Signals
MACDBullish18.9913
RSI(14)Neutral54.19
Street Consensus
6 analysts
₹2339.83
mean target
Low ₹1645.0Now ₹2192.0High ₹2815.0
⧉ Strategy Fit 🔒

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