Kirloskar Oil Engines shares jump on HyperNext order for 192 MW data centre power

Jefferies sees a 21% upside for Kirloskar Oil Engines setting the target price at Rs 2,815. The brokerage has cites market share gains in high-horsepower gensets and a fresh data centre order for the bullish call.

Recent large order win from one of the hyperscalers is also positive for the company, with execution to be completed during this fiscal, adds the brokerage.

On June 19, Kirloskar Oil Engines in an exchange filing informed that it has received a "significant" order from HyperNext. The order comprises 192 MW capacity and includes 96 units of KOEL's 2500 kVA Optiprime Dual Core power systems.

Shares of Kirloskar Oil Engines Ltd (KOEL) extended their spectacular rally on Tuesday, surging 13.76% to an intraday high of Rs 2,720. The stock had already gained 20% in the previous session, taking its cumulative rise to nearly 36% over the last two trading days.The sharp rally was triggered by the company's announcement of a major order from HyperNext, a next-generation digital infrastructure company focused on hyperscale-ready, AI-enabled data centre solutions. Following the development, leading brokerages including JM Financial, Axis Capital and Motilal Oswal reiterated their bullish stance on the stock.KOEL has secured an order for 192 MW of power capacity, comprising 96 units of its 2,500 kVA Optiprime Dual Core power systems, making it one of the largest deployments of high-capacity power systems for hyperscale data centres in India.The systems will power HyperNext's upcoming digital infrastructure projects aimed at supporting the growing demand from cloud computing, artificial intelligence and mission-critical enterprise applications. The order is expected to strengthen KOEL's position in the fast-growing data centre power solutions segment.Brokerages remain positiveJM Financial upgraded the stock to 'Buy', citing KOEL's planned Rs 14 billion capex to expand its Kagal facility by 20,000 engines annually. The brokerage believes the expansion will strengthen the company's high-horsepower (HHP) engine portfolio, support export growth and generate additional revenue of Rs 5–6 billion at peak utilisation. JM Financial raised its valuation multiple to 42x FY28 earnings and assigned a target price of Rs 2,430.Axis Capital maintained its 'Buy' rating and increased its target price to Rs 2,300, highlighting the potential for faster growth in KOEL's high-horsepower power generation business. The brokerage expects successful execution of the HyperNext order to further enhance the company's presence in the data centre segment and drive stronger earnings growth.Meanwhile, Motilal Oswal reiterated its 'Buy' recommendation with a target price of Rs 2,350, reflecting confidence in KOEL's long-term growth prospects and earnings trajectory.With a marquee data centre order in hand and strong backing from brokerages, KOEL remains firmly on investors' radar as a key beneficiary of India's expanding digital infrastructure and AI-led data centre boom.Share price trendThe latest surge adds to KOEL's impressive performance over the past year. The stock has rallied around 85% in the last three months and generated a return of nearly 182% over the past 12 months, almost tripling investor wealth. At current levels, the company commands a market capitalisation of approximately Rs 34,737 crore and touched a fresh 52-week high during Tuesday's session.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)

Kirloskar Oil Engines shares surged to their daily limit following a substantial order from data-centre firm HyperNext for 192 megawatts of power systems. Analysts see this deal as a significant validation of the company's capabilities, potentially boosting its market share in high-horsepower segments. While near-term gains might be tempered by the recent rally, the stock remains a promising investment with analysts maintaining 'Buy' ratings and revised price targets.

The stock of Kirloskar Oil Engines surged 20 percent on Monday to hit upper circuit as the company secured a major power generation order for artificial intelligence infrastructure.The stock opened 5.4 percent higher at Rs 2,100 apiece compared to the previous close of Rs 1,992 apiece. It further jumped to Rs 2,390 apiece to climb 20 percent and hit upper circuit. The stock also reached its 52-week high.The unprecedented rally in the stock came after the company on Friday announced that it had secured a 196 MW power generation order from HyperNext, a digital infrastructure firm.“The order comprises 192 MW, 96 units of KOEL’s 2500 kVA Optiprime Dual Core power systems, representing one of the largest deployments of high-capacity power systems for hyperscale data centres in India,” Kirloskar Oil Engines said in a statement.The deployment will support HyperNext's plan to build energy-efficient digital infrastructure capable of meeting the rapidly growing demands of cloud computing, artificial intelligence, and mission-critical enterprise workloads.“HyperNext has emerged as an innovative force in the digital infrastructure sector, developing future-ready data centre ecosystems designed to support AI workloads, hyperscale cloud deployments, and enterprise digital transformation initiatives,” the statement said.Sensex Climbs 473 Points, Nifty Gains 0.6%, Banking And IT Stocks Lead Market Rebound “The company's focus on sustainability, operational excellence, and advanced technology architecture aligns closely with KOEL's commitment to delivering reliable and efficient power solutions,” it added.HyperNext Group CEO Harsh Macwann said that the company will continue to expand its digital infrastructure footprint.“KOEL's Optiprime solution offers the scale, engineering sophistication, and proven operational performance required for our mission-critical environments. Being India’s first data centre with an 800VDC power architecture, this partnership reflects our shared commitment to enabling the next generation of digital infrastructure while maintaining the highest standards of operational resilience,” Macwann said.Kirloskar Oil Engines is a major player in advanced engineering and energy solutions. The company specialises in the design and manufacture of internal combustion engines, gensets, and integrated power solutions.