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Kirloskar Engines Rockets on Massive Data Center Deal
23 Jun
Summary
- Kirloskar Oil Engines secured a 192 MW order from data-center firm HyperNext.
- Analysts predict significant market share growth in high-horsepower segments.
- Stock received 'Buy' ratings with revised price targets from analysts.
Kirloskar Oil Engines experienced a significant surge in its share price, hitting the daily trading limit on Monday. This spike followed the announcement of a major order from HyperNext, a data-centre infrastructure company.
The order encompasses 192 megawatts of power systems, comprising 96 units. This capacity is substantial enough to power over 100,000 homes.
Analysts have lauded the deal, noting it validates Kirloskar Oil Engines' ability to deliver high-capacity, mission-critical power solutions. They anticipate a rapid expansion of the company's market share in the high-horsepower segment, which was negligible in FY22 and is projected to reach near double-digit by FY26.
Investment firms like JM Financial and Axis Capital have maintained 'Buy' ratings on the stock. JM Financial revised its 12-month target price to ₹2,430, while Axis Capital set its target at ₹2,300, citing the new growth avenue in India's data centre market.
