Key Events This Week
16 Feb: Downgrade to Sell rating announced amid weak financials and bearish technicals
16 Feb: Bearish technical shift confirmed with mixed momentum signals
19 Feb: Sharp decline of 2.85% on heavy volume amid negative market sentiment
20 Feb: Week closes at Rs.2,962.85, down 1.04% on the day
Monday, 16 February: Downgrade Sparks Sharp Decline
Kirloskar Industries opened the week under pressure following MarketsMOJO’s downgrade of the stock from Hold to Sell on 13 February 2026. The downgrade was driven by deteriorating financial performance, including a low Return on Capital Employed (ROCE) of 7.60% for the half-year ended FY25-26 and an 18.1% decline in quarterly profit before tax excluding other income. The company’s Mojo Score fell to 31.0, signalling caution amid weakening fundamentals.
On 16 February, the stock closed at Rs.3,050.00, down 2.31% from the previous close of Rs.3,122.10, reflecting immediate market reaction to the downgrade. This decline contrasted with the Sensex’s 0.70% gain to 36,787.89, highlighting the stock’s underperformance. The day also saw a notable bearish technical shift, with key momentum indicators such as the MACD turning negative on weekly and monthly charts, and moving averages confirming a downtrend. Despite some short-term bullish signals from the weekly RSI and On-Balance Volume, the overall technical outlook was negative.
Tuesday, 17 February: Modest Recovery Amid Mixed Signals
Following Monday’s sell-off, Kirloskar Industries rebounded modestly on 17 February, closing at Rs.3,102.00, up 1.70%. This recovery occurred alongside a 0.32% rise in the Sensex to 36,904.38. The increase was supported by mild buying interest, as reflected in the weekly RSI’s bullish stance and a slightly positive On-Balance Volume. However, the stock remained below key moving averages, and the broader technical trend stayed bearish, limiting upside momentum.
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Wednesday, 18 February: Slight Decline Amid Volatility
The stock slipped 0.65% to close at Rs.3,081.80 on 18 February, while the Sensex advanced 0.43% to 37,062.35. The decline reflected ongoing uncertainty as the bearish technical indicators continued to weigh on sentiment. The stock traded within a volatile range, with the Bollinger Bands signalling increased downside risk. The mixed momentum signals persisted, with the weekly RSI bullish but monthly RSI neutral, indicating a lack of sustained buying pressure.
Thursday, 19 February: Heavy Selling Pressure Amid Market Weakness
Kirloskar Industries faced its steepest single-day drop of the week on 19 February, falling 2.85% to Rs.2,994.05 on a volume spike to 107 lakh shares. This decline coincided with a sharp 1.45% fall in the Sensex to 36,523.88, reflecting broader market weakness. The intensified selling pressure aligned with the bearish technical trend, as the stock remained below its 50-day and 200-day moving averages. The Know Sure Thing (KST) oscillator confirmed the downtrend on weekly and monthly charts, reinforcing the negative momentum.
Friday, 20 February: Week Ends with Further Losses
The week concluded with Kirloskar Industries closing at Rs.2,962.85, down 1.04% on the day despite the Sensex gaining 0.41% to 36,674.32. The stock’s volume surged to 445 lakh shares, indicating continued investor caution. The persistent bearish technical signals and the downgrade’s lingering impact contributed to the stock’s underperformance. The promoter holding reduction to 71.87% and the company’s weak operational metrics continue to weigh on sentiment.
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Weekly Price Performance: Kirloskar Industries vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.3,050.00 | -2.31% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.3,102.00 | +1.70% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.3,081.80 | -0.65% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.2,994.05 | -2.85% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.2,962.85 | -1.04% | 36,674.32 | +0.41% |
Key Takeaways
Negative Financial and Operational Trends: Kirloskar Industries’ declining ROCE of 7.60% and an 18.1% drop in quarterly profit before tax excluding other income highlight operational challenges that have eroded investor confidence.
Bearish Technical Momentum: The shift from mildly bearish to outright bearish technical indicators, including MACD, moving averages, and KST oscillator, signals increased downside risk and sustained selling pressure.
Underperformance vs Sensex: The stock’s 5.10% weekly decline contrasts sharply with the Sensex’s 0.39% gain, underscoring the stock’s relative weakness amid broader market resilience.
Promoter Stake Reduction: A 0.65% reduction in promoter holdings to 71.87% adds to concerns about near-term prospects and management confidence.
Valuation Reflects Challenges: Despite an attractive Enterprise Value to Capital Employed ratio of 0.6, the valuation appears to price in the company’s financial and technical difficulties rather than signalling a buying opportunity.
Kirloskar Industries’ strong long-term returns over five and ten years remain a positive backdrop, but the current environment is dominated by caution due to deteriorating fundamentals and technical weakness.
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