Why Is MOFSL Turning Selective On Capital Goods Stocks Like KPI And KEC?
Motilal Oswal Financial Services (MOFSL) has shared its latest views on the capital goods sector, with a focus on KEC International and Kalpataru Projects International (KPI). The report suggests that the transmission pipeline is strengthening, margins are set to improve, and differentiated ratings reflect company-specific positioning.
What Is Driving The Order Pipeline?
Transmission & Distribution (T&D) remains the backbone of growth for these companies. A steady flow of government-led power transmission initiatives is expected to sustain momentum for the sector.
How Are Margins Likely To Trend?
While T&D continues to dominate, diversification into international projects and non-T&D verticals could further support margin resilience and earnings visibility.
What Are MOFSL’s Ratings And Targets?
The differentiated stance underscores KPI’s stronger growth profile compared to KEC, even though both are well-placed in the sector’s upcycle.
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