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Kirloskar Oil Engines Limited (KIRLOSENG) Fair Value & Analysis

Industrials · IN · Market cap ₹337B

KO Kirloskar Oil Engines Limited KIRLOSENG · NSE
Price₹2,102
Fair Value₹829.60
Upside-60.5%
Quality55/100
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Healthy Growth
Thin margins · 7.5% net margin
Moderate debt · generates free cash flow
0.30% dividend yield
Mixed vs. peers (7/14)
Moderate moat 56/100
Evidence: High Range ₹408.18 – ₹1,037 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 4 days ago

Share price −6.8% over the past month.

A solid business, but screening 61% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹1,037). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹408.18 to ₹1,037) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹2,564 ₹118.14 Fair Value ₹829.60 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹118.14 – ₹2,564 · fair‑value band ₹408.18 – ₹1,037 · the ₹2,102 price screens above the ₹829.60 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Kirloskar Oil Engines Limited (KIRLOSENG) currently trades at ₹2,102, while our model-based Fair Value estimate is ₹829.60, implying the stock looks roughly 60.5% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Kirloskar Oil Engines Limited generated revenue of ₹77.0B at a net margin of 7.5%. Revenue grew 20.7% year over year. It earns a return on equity of 16.8%. Net debt stands at ₹41.2B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹408.18 (bear case) to ₹1,037 (bull case); at ₹2,102, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 23% below its 52-week high and 155% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -61%, KIRLOSENG screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹450.00 ₹937.23 ₹1,830 80
Residual Income ₹273.44 ₹369.10 ₹1,326 76
Rev-Margin DCF ₹512.39 ₹1,037 ₹1,726 74
All 26 models by family
DCF Models
FCF DCF ₹454.92 ₹984.53 ₹1,970 38
Owner Earnings ₹262.55 ₹617.64 ₹1,278 31
5Y Revenue Exit ₹512.39 ₹1,056 ₹1,809 39
5Y EBITDA Exit ₹664.44 ₹1,375 ₹2,284 41
5Y P/E Exit ₹452.05 ₹929.78 ₹1,484 38
10Y Revenue Exit ₹466.27 ₹989.07 ₹1,820 36
10Y EBITDA Exit ₹594.46 ₹1,230 ₹2,233 37
10Y P/E Exit ₹449.46 ₹893.42 ₹1,537 35
Earnings-Based
Graham-Dodd ₹268.63 ₹1,315 ₹1,812 54
Lynch FV ₹353.13 ₹504.48 ₹655.82 50
PEG = 1.0 ₹353.13 ₹504.48 ₹655.82 46
EPV ₹588.45 ₹715.03 ₹827.55 59
Dividend Discount
Gordon GGM ₹62.49 ₹136.42 ₹229.53 70
DDM Multi-Stage ₹62.49 ₹111.75 ₹142.17 61
Multiples
P/E Multiple ₹622.20 ₹829.60 ₹1,037 63
P/S Multiple ₹503.69 ₹671.58 ₹839.48 58
P/B Multiple ₹503.69 ₹671.58 ₹839.48 55
EV/EBIT ₹959.84 ₹1,323 ₹1,686 53
EV/EBITDA ₹820.40 ₹1,137 ₹1,453 54
EV/Revenue ₹538.59 ₹824.63 ₹1,111 43
Asset-Based
NCAV (Graham) ₹124.51 ₹166.84 ₹249.02 50
Growth DCF
Growth DCF ₹450.00 ₹937.23 ₹1,830 80
Rev-Margin DCF ₹512.39 ₹1,037 ₹1,726 74
Economic Profit
Residual Income ₹273.44 ₹369.10 ₹1,326 76
ROIC Compounder ₹702.62 ₹1,030 ₹1,476 72
Growth Earnings
Growth-Adj P/E ₹545.87 ₹779.81 ₹1,014 68

Widest divergence: DCF Models (₹984.53) versus Dividend Discount (₹111.75). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹77.0B
Revenue growth (YoY) +20.7%
Net margin 7.5%
Return on equity 16.8%
Free cash flow ₹6.1B FY2026
P/E ratio 53.7
More key figures
Operating margin 15.4%
EPS (TTM) ₹39.10
Dividend yield 0.3%
EPS growth (YoY) +21.2%
Net debt ₹41.2B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 54 · Market factors (momentum, volatility) 81

Profitability 46
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 40
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 94
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Kirloskar Oil Engines Limited manufactures and distributes diesel engines, agricultural pump sets, electric pump sets, power tillers, generating sets, and spares in India and internationally. It operates in three segments: Business to Business, Business to Customer, and Financial Services.

Full company description

Kirloskar Oil Engines Limited manufactures and distributes diesel engines, agricultural pump sets, electric pump sets, power tillers, generating sets, and spares in India and internationally. It operates in three segments: Business to Business, Business to Customer, and Financial Services. The company offers power generation solutions, such as gensets, backup solutions, generator electrical, retrofit emission control device, and dual fuel kit for residential gensets, telecom, infrastructure, realty, hospitality, banks, defense, retail, healthcare, manufacturing, and data center; and industrial engines for excavation, construction, railways, mining, agriculture, fishery, defense, oil and gas, and fluid handling sectors. It also provides farm mechanization products, such as power tillers and weeders, rotary tillers, hand held tools, and allied products for agriculture sector; and water management solutions, such as diesel engines, electric and engine-based pumps, and alternators for retail, agriculture, and industrial sectors. In addition, the company offers annual maintenance contracts, spares, allied products, and after sales support services to customer support and service and retail channel sectors; and electric motors, organic waste, and firefighting solutions. Further, it provides financial services. The company was formerly known as Kirloskar Engines India Limited and changed its name to Kirloskar Oil Engines Limited in March 2010. Kirloskar Oil Engines Limited was founded in 1946 and is headquartered in Pune, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Kirloskar Oil Engines Limited reported revenue of ₹77.0B in FY2026 versus ₹39.8B in FY2022, a compound +18.0%/yr. Reported net income was ₹5.7B in FY2026, compounding +34.7%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹77.0B
Latest YoY
+22.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.8%
Avg. growth/yr (16Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.1%
Revenue +18.0%/yr
FY22 ₹39.8B
FY23 ₹49.7B
FY24 ₹58.4B
FY25 ₹62.9B
FY26 ₹77.0B
Net income +34.7%/yr
FY22 ₹1.7B
FY23 ₹3.3B
FY24 ₹4.4B
FY25 ₹4.9B
FY26 ₹5.7B
Character of growth · EPS growth decomposed (2015-2026) +13.4 % p.a.
Revenue per share +11.3 pp

of which total revenue +11.4 pp · buybacks/dilution −0.1 pp

EBIT margin +10.8 pp
Tax rate +0.2 pp
Residual (interest, one-offs) −8.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

KIRLOSENG screens 61% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Kirloskar Oil Engines Limited Fair Value". https://www.fairvalue-calculator.com/stock/KIRLOSENG

Peer Group

Specialty Industrial Machinery · 805 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Above median
Fair Value upside −61% · Below median
Return on equity (TTM) 17% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 15% · Top 25%
Revenue growth 21% · Top 25%
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.86× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 53.7× · Pricier than 75% of peers
P/B 9.32× · Pricier than 75% of peers
P/S (TTM) 4.38× · Pricier than 75% of peers
P/FCF 0.6× · Cheaper than 75% of peers
EV/EBITDA 25.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 22
PAST 67 · sector 28
HEALTH 57 · sector 95
DIVIDEND 6 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €899.80 €186.93 -79%
1SIE 1SIE €281.75 €91.93 -67%
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Atlas Copco AB ATCOA kr 210.00 kr 112.59 -46%
Sandvik AB SAND kr 358.60 kr 193.01 -46%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥39.17 ¥22.68 -42%
NARI Technology Co 600406 ¥24.06 ¥18.71 -22%
ABB India Limited ABB ₹7,645 ₹1,322 -83%
Cummins India Limited CUMMINSIND ₹5,315 ₹1,355 -75%
Bharat Heavy Electricals Limited BHEL ₹421.70 ₹96.51 -77%

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Frequently asked questions

Is Kirloskar Oil Engines Limited (KIRLOSENG) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹829.60 versus a price of ₹2,102, about −61% (overvalued).
What is the fair value of KIRLOSENG?
Our model-based fair value for Kirloskar Oil Engines Limited is ₹829.60 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹2,102.
What is the quality score of KIRLOSENG?
Kirloskar Oil Engines Limited has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Kirloskar Oil Engines Limited (KIRLOSENG)?
Kirloskar Oil Engines Limited reported trailing-twelve-month revenue of about ₹77.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of KIRLOSENG?
The net profit margin of Kirloskar Oil Engines Limited is about 7.5%, meaning it keeps roughly 7.5% of revenue as net income. Based on the latest reported figures.
Does Kirloskar Oil Engines Limited pay a dividend?
Kirloskar Oil Engines Limited currently shows a dividend yield of about 0.30% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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