Kirloskar Oil Eng Ltd.
NSE: KIRLOSENGKirloskar Oil Eng Ltd.: A 30-second snapshot
Kirloskar Oil Engines (KIRLOSENG) closed at ₹1,740.20 on 18 May 2026, up 150.32% over 12 months and 13.8% above its 50-DMA of ₹1,532, with RSI at 61.75. Trailing PE of 44.71 compares to a forward PE of 31.13, implying consensus expects earnings to grow materially into the current valuation. Key structural concerns center on a consolidated debt-to-equity of 150.33 and zero FCF-positive years in the tracked history.
P/E
44.7
Forward P/E
31.1
ROE
+16.8%
Debt / Equity
150.32
Profit Margin
+7.4%
Div. Yield
+0.4%
5Y ROE > 15%
2/5
5Y FCF > 0
0/5
Quality
48/100
News
8 headlines · 5 positive · 0 negative
Kirloskar Oil Engines Posts Record Q4FY26 Performance - Machine Maker
Machine Maker
KIRLOSENG: Record revenue growth, margin improvement, and major CapEx drive strong outlook - TradingView
TradingView
KIRLOSENG: Record FY26 revenue and profit growth, with strong B2B, B2C, and financial services performance - TradingView
TradingView
KIRLOSENG: Revenue and net profit rose significantly year-over-year, with a ₹4.50/share dividend proposed - TradingView
TradingView
Kirloskar Oil Engines Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
Recent context
- ·Q4FY26 and full-year FY26 results (reported 14-15 May 2026) described record revenue and profit growth across B2B, B2C, and financial services segments, with a ₹4.50/share final dividend proposed — the strongest earnings release in the company's recent reporting history per coverage sources.
- ·A major CapEx programme was flagged in recent analyst coverage alongside margin improvement, suggesting the company is investing for scale; however, CapEx intensity is consistent with the zero-FCF track record observed in the persistence data.
- ·All 8 news items in the sample period carry positive or neutral sentiment with zero negative items; the absence of adverse newsflow during this window coincides with the stock trading near a 52-week high.
Strengths
- +5-year revenue growth of 21.5% and earnings growth of 21.2% demonstrate a sustained double-digit compounding track record over the period.
- +Q4FY26 news flow reports record revenue and profit for the full year ended March 2026, with a ₹4.50/share dividend proposed — signalling management confidence in the earnings cycle.
- +Price trades 47.5% above the 200-DMA (₹1,180), above the 50-DMA (₹1,532), and within 2% of its 52-week high — the near-term price structure is constructive across multiple timeframes.
- +Among Infrastructure peers, KIRLOSENG carries the second-lowest trailing PE (44.71), behind only LT (33.41) — below ABB (86.81) and CGPOWER (108.51) — which reflects a relative valuation discount versus some sector peers.
Weaknesses
- −Free cash flow positive years = 0 across the tracked period alongside a rising debt trend; earnings growth has not been accompanied by cash generation, which limits the ability to service or reduce the high consolidated debt load organically.
- −Consolidated debt-to-equity of 150.33 is anomalously high relative to the Infrastructure sector; the composition — whether operating leverage, financial-services subsidiary debt, or off-balance-sheet structures — is not discernible from available data and warrants investigation.
- −Quality score of 34 ranks 4th of 6 Infrastructure peers, and ROE above 15% has been achieved in only 2 of the tracked years; the consistency score of 49 indicates uneven profitability through the cycle.
- −Resistance at ₹1,765 is 1.4% above the current price; the stock is trading near a technical ceiling with limited upside to the next established level, while the nearest support (₹1,572) is 9.7% below current price.
Open questions
- ?Does the consolidated D/E of 150.33 reflect an operating-entity leverage problem or primarily debt within a financial-services subsidiary — and what is the recourse structure if the subsidiary faces stress?
- ?The 5-year earnings CAGR of 21.2% is strong, but FCF positive years = 0; is the earnings-to-cash gap driven by working capital build, CapEx investment, or accounting adjustments — and when does the company expect FCF to turn positive?
- ?KIRLOSENG's quality score of 34 ranks near the bottom of its Infrastructure peer group despite the strong recent price performance; does the current PE of 44.71 reflect a re-rating driven by fundamentals, or primarily by sector / momentum flows?
- ?The stock is within 2% of its 52-week high with resistance at ₹1,765; how does the forward PE of 31.13 compare to the peer group on a forward basis, and what earnings growth rate is required to justify the current trailing multiple?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| KIRLOSENG | Kirloskar Oil Eng Ltd.You're viewing | 44.7 | +16.8% | 34 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹1,740.20
SMA 50
₹1,532.04
SMA 200
₹1,180.19
RSI (14)
61.8 (neutral)
From 52w high
-2.0%
1Y return
+150.3%
3M return
+31.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 150.33 is anomalously elevated relative to Infrastructure sector peers (LT and ABB typically carry sub-1 D/E on an operating basis); this likely reflects a financial-services or leasing entity within the consolidated structure, but the consolidated D/E magnitude warrants scrutiny of the debt composition and its recourse nature.
- highFree cash flow positive years = 0 across the available tracking period alongside a rising debt trend; the business has not converted reported earnings into operating cash, raising questions about working capital intensity and the quality of the 7.39% net margin.
- mediumROE above 15% achieved in only 2 of the tracked years; consistency score of 49 and quality score of 34 rank 4th of 6 peers in the Infrastructure peer set, below BEL (57), ABB (47), and CGPOWER (45).
- mediumResistance at ₹1,765 sits just 1.4% above current price of ₹1,740; the stock is near its 52-week high (drawdown of -1.96%) with RSI at 61.75, leaving limited technical headroom before the next established resistance level.
- lowNews sample is thin at 8 articles, all from a two-day window (14-15 May); sentiment read is predominantly driven by Q4FY26 earnings coverage and may not reflect longer-term newsflow quality or diversity.
Cross-section contradictions
- 5-year revenue growth of 21.5% and earnings growth of 21.2% are materially positive, yet FCF positive years = 0 across the tracked period — sustained top-line and earnings growth has not translated into free cash generation.
- Price is up 150.32% over 12 months and 31.61% over 3 months, trading 47% above the 200-DMA (₹1,740 vs ₹1,180), yet the quality score of 34 ranks 4th of 6 Infrastructure peers — price momentum and fundamental quality rankings are sharply divergent.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days