Kirloskar Oil Engines surges over 970% in 2 years, more than 1200% in 4 years. Should you buy?

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Also Read: Quant Mutual Fund: How many days will it take to to liquidate its portfolio?Additionally, the push for affordable housing has led to increased construction activities, further boosting the demand for construction equipment and machinery. Rural electrification initiatives have also contributed to the sector's growth.

The complete electrification of the railway network by 2025 is another key factor driving investor confidence in the capital goods space. One of the standout performers in the capital goods space in recent years was Kirloskar Oil Engines (KOEL), a leading manufacturer of diesel engines and diesel generator sets.

In the current year so far, the stock has climbed from around ₹662 apiece to the current position of ₹1,402, producing a staggering return of 114%.Over the last 2 years, the shares have gained 978% while they jumped 1210% over the last four years.Also Read: TBO Tek stock jumps 11% to hit new all-time high after Goldman Sachs initiates coverage with 'buy' ratingKirloskar Oil Engines has been dominating the power generator market for the last three decades. It offers the widest range of petrol and diesel power generating sets used for power backup in industrial, residential, and commercial establishments, as well as in special applications such as telecom.Despite the sharp increase in share value, domestic brokerage firm Motilal Oswal in its latest report maintained its 'buy' rating on the stock, setting a target price of ₹1,500 per share.The brokerage's channel checks with genset players indicate that demand has been strong in the first quarter of FY25, primarily driven by pre-buying.