Kirloskar Oil hits the upper circuit, but upside may be limited here on

Mumbai: Shares of Kirloskar Oil Engines Monday were locked in their highest tradable limit for a day after the company said it has received a significant order from data-centre infrastructure company HyperNext.

Analysts said while the stock looks promising, near-term upside may be limited after its recent run-up.

Kirloskar Oil Engines shares ended at ₹2,389.8 on Monday, up 20%.


Other Kirloskar group stocks such as Kirloskar Electric Company, Kirloskar Brothers, Kirloskar Pneumatic Company, Kirloskar Ferrous Industries, and Kirloskar Industries were up between 2% and 15%, while the Nifty 50 and Nifty 500 climbed 0.4% and 0.5%, respectively.

The company said it has received an order for 192 megawatts (MW) from HyperNext, comprising 96 units of its power systems. This level of capacity would be enough to power more than 100,000 homes or a small town.

From negligible market share in HHP (high-horsepower) in FY22, the company has near double-digit market share in FY26, said analysts at JM Financial in a report. "We expect its market share to rise rapidly with a spate of product introductions," said the report.

The brokerage has upgraded the stock's rating from an 'Add' to 'Buy', and raised its 12-month target price to ₹2,430, implying a further upside of 1.7% after Monday's rally.

Axis Capital also increased its price target to ₹2,300 on Friday, and retained its 'Buy' rating, with analysts saying that this deal-win validates Kirloskar Oil Engines' capabilities to deliver high capacity, mission-critical power solutions as it opens a new growth avenue in India's fast-growing data centre market.