Marine Diesel Engine Manufacturer Bags Order Worth Rs 270,00,00,000 From Ministry of Defence
The stock gave multibagger returns of 450 per cent in 3 years and a whopping 780 per cent in 5 years.
Kirloskar Oil Engines Limited (KOEL) has secured a prestigious order from the Ministry of Defence, Government of India, specifically the Indian Navy, for the design and development of a 6MW Medium Speed Marine Diesel Engine under the Make-I scheme. This significant project, sanctioned on April 2nd, 2025, involves the creation of a prototype engine with over 50 per cent indigenous content, at a total cost of Rs 270 crore, with 70 per cent of the funding provided by the government. The scope of the order extends to designing engines scalable from 3MW to 10MW, intended for main propulsion and power generation in Indian Navy and Indian Coast Guard vessels. This initiative directly supports the government's "Aatmanirbharta" vision, aiming to reduce reliance on imported marine engines and bolster domestic manufacturing capabilities.
This order is a testament to KOEL's commitment to the "Make in India" initiative and its position as an "India First" organization. The project will be executed over 36 months, with the design and development handled entirely by KOEL's R&D teams, showcasing the company's engineering strength. The agreement, formalized in the presence of key government and naval officials, underscores the strategic importance of this development for India's defense sector, marking a crucial step towards achieving self-reliance in marine engine technology.
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About the Company
Kirloskar Oil Engines Limited (KOEL), with 75+ years of experience, is a global leader in internal combustion engines, generator sets, and farm equipment. They produce engines for diverse applications (3 kW to 10 MW), including construction, railways, and mining, offering both air-cooled and liquid-cooled options, and also alternative fuel solutions. With a strong international presence, including offices in Dubai, South Africa, Kenya, and Houston, they operate in over 60 countries, focusing on innovation and sustainability.
The company has a market cap of over Rs 10,000 crore with a PE of 23x and an ROE of 18 per cent. On Thursday, shares of Kirloskar Oil Engines gained 4.94 per cent to Rs 765 per share from its previous closing of Rs 729.20 per share. The stock gave multibagger returns of 450 per cent in 3 years and a whopping 780 per cent in 5 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.