Kirloskar Oil Engines Ltd (KIRLOSENG) — share price & stock analysis

Market cap

₹34,035 Cr

P/E

57.4×

ROE

17.7%

vs own 10-yr valuation

highest ever

Book value / share

₹249

EPS (TTM)

₹40.9

10-yr median P/E

23.9×

Revenue (FY26)

₹7,701 Cr

Profit after tax (FY26)

₹562 Cr

Weinstein stage

Stage 2 (42 weeks)

Data as of

1 July 2026

4 of the 5 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 15% — decent; real debt (1.48× equity); margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

Most of this rally is re-rating, not earnings

Since Mar 2016, the stock is up 1,003% while earnings per share grew 219%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 57.4× is about the most expensive this stock has ever traded against its own 10-year history.pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (23.9×).

Stage 2: the trend is up, and has been for 42 weeks

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 2: advancing — 42 weeks so far, confirmed.stage

The price sits above its rising 200-day average (₹1,453 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 41 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 12 years, sales went from ₹2,319 Cr to ₹7,701 Cr (about 11% a year), and profit from ₹178 Cr to ₹562 Cr.revenuenet_profit

Margins widened 5.3 points along the way — growth with improving economics.operating_profit

Sales jumped 21% last quarter — growth every single quarter for over 2 years

Mar 26 sales were ₹2,116 Cr, up 21% on the same quarter last year.revenue

That makes 11 quarters of growth in a row — this is a trend, not a blip.revenue

Margins have been rebuilt — 10.2% in FY22 to 18.4% now

Of every ₹100 of sales, the company keeps ₹17.8 as operating profit (a year ago it kept ₹17.9).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 10.2% in FY22 and has been rebuilt to 18.4% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

Profit jumped 22% — mostly from selling more

Mar 26 profit after tax was ₹155 Cr, up 22% year on year.net_profit

Profits on paper, cash lagging behind

Over the last 5 profitable years, the business reported ₹1,981 Cr of profit and collected ₹−2,237 Cr of operating cash — about -113% conversion.operating_cash_flownet_profit

The gap sits in receivables: customers now take 45 days to pay, up from 40. Profit booked, cash pending.debtor_days

The cash cycle is stable

One rupee now takes about 28 days to go out the door as materials and come back as collected cash.cash_conversion_cycle

The biggest mover: suppliers being paid later (72 → 78 days).payable_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹543 Cr (FY14) to ₹1,415 Cr, with another ₹61.0 Cr of capacity under construction right now.fixed_assetscwip

The build is bigger than the cash engine: investing outflows (₹952 Cr) exceeded operating cash (₹−276 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is building — watch this

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹148 — total borrowings have grown from ₹0.0 Cr to ₹5,374 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹15 — decent, not special

Return on capital employed is 15.0% (a year ago: 14.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Big money is quietly accumulating

Promoters hold 41.1%, essentially unchanged. Foreign funds own 10.8%, domestic funds 26.7%.promoters_pctfiis_pctdiis_pct

Strong on the data — worth the deeper look if the story keeps its promises

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: cash generation rising (₹−739 Cr → ₹932 Cr).operating_cash_flow

One dissent worth hearing: our valuation cycle lens reads negative — “PE at at peak — high risk of contraction. PE at 98th percentile of 10Y range. PE is +148% vs 10Y median. PE change driven by: HEALTHY. EV/EBITDA significantly a”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data