ftInvstr
KIRLOSENG · Industrials ₹1619.0 -0.85% Mkt Cap ₹23548 Cr

KIRLOSENG

Industrials Specialty Industrial Machinery
₹1619.0
-0.85% today · 30d -27.07%
as of 2026-11-09
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 2026-09-30
REVENUE
₹2284 Cr
+17.23% YoY
NET PROFIT
₹130 Cr
-18.14% YoY
OPM
15.18%
-4.93pp YoY
EPS
₹9.04
PE 55.24
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-0.5%, h2=-0.9%, h3=-1.1% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ 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
ML Forward Growth Predictions 🔒

9 ML-predicted forward-growth ranks across sales, EBIT, and FCF.

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62
SCORE / 100
Overall
6-axis composite of the sections below.
Performance STRONG 100
Valuation STRETCHED 20
Growth STRONG 74
Profitability HIGH 78
Technicals BEARISH 23
Risk LOW 80
Key Stats
TTM PE
55.24
P/B
8.68
52W HIGH
₹2720.0
OFF HIGH
-40.48%
DIV YIELD
0.31%
MKT CAP
₹23548 Cr
◉ Active Signals
MACDBearish-20.0842
RSI(14)Bearish32.25
Street Consensus
6 analysts
₹2339.83
mean target
Low ₹1645.0Now ₹1619.0High ₹2815.0
⧉ Strategy Fit 🔒

See which of ftInvstr's 50+ strategies hold KIRLOSENG and at what entry.

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