Buy Kirloskar Oil Engines Ltd For Target Rs. 1,540 by Motilal Oswal Financial Services Ltd

* We expect revenue growth of 16% YoY, led by Industrial and Distribution segments. We expect the Powergen segment’s performance to pick up after some weakness seen during October and November.
* We expect the EBITDA margin to be flattish YoY as certain low-to-mid kVA nodes have seen some price correction.
* Key monitorables include outlook on genset demand, pricing environment, and export ramp-up.
* Ramp-up of the US business, B2C business, and Arka Fincap performance will be closely observed.
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