Buy Kirloskar Oil Engines Ltd for the Target Rs. 1,230 by Motilal Oswal Financial Services Ltd

* We expect revenue growth of 20% YoY, driven by healthy growth across segments.
* Key monitorables include outlook on genset demand, pricing environment, and export ramp-up.
* We expect EBITDA margin to contract 80bp YoY on a high base of last year due to provision reversal.
* Ramp-up of the US and Middle East businesses, B2C business, scale-up of distribution business, and Arka Fincap performance will be closely observed.
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