Kirloskar Oil Engines Limited DCF Valuation
KIRLOSENG · Capital Goods · Current price ₹2,037.2
Kirloskar Oil Engines Limited cash-flow valuation
Our discounted cash flow (2-stage) values Kirloskar Oil Engines Limited at ₹194 per share. implied value is <0.2× the price (likely a data error). A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Kirloskar Oil Engines Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Kirloskar Oil Engines Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹1,441 – ₹1,761
Why this method for this business
The company is capital-intensive and operates in a cyclical sector, making DCF and EV/EBITDA appropriate. Relative PE is used to benchmark against peers in the same sector.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
required inputs missing
- Forward-looking methods were excluded due to limited analyst coverage
- Book-value residual income is not suitable for a capital-heavy business
What was missing
- Limited analyst coverage for forward estimates
- Insufficient data on peer multiples for EV/EBITDA
What drives it
16 inputs, grouped by how strong each claim is
- Sector-median P/E
- 43.77×
- Peers used
- 7
- EPS (TTM)
- 37.57 ₹/share
- Own-history median P/E
- 17.25×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Anchor correction
- peer anchor 43.8x diverges 0.4x from 7yr own-history 17.2x (no size-comparable peer) — anchor blended 0.6 toward own-history → 27.9x
- Term: quality
- +2.4%
- Term: growth
- +40.0%
- Term: capital_allocation
- +8.3%
- Term: financial_strength
- +9.9%
- Term: history
- -11.4%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
peer-anchor mismatch — deep own-history used instead
quality 60/100 (high, stable returns) → premium
durable ~21% CAGR (ROCE 13% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid -38% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +53.0%
- Fair-multiple confidence
- 80%
- Fair P/E
- 42.62×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Kirloskar Oil Engines Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Kirloskar Oil Engines Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.