How Are KPI And KEC Positioned In MOFSL’s Capital Goods Sector Strategy?

Edit this post

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?

The Central Electricity Authority’s (CEA) ordering pipeline has picked up pace after a muted start in FY26. Both KEC and KPI confirm robust visibility over the next few years, with greater emphasis on HVDC projects, international markets, and non-T&D opportunities.

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?

Stable commodity prices are paving the way for gradual margin recovery from FY26 onward. With execution improving and raw material volatility easing, both companies are positioned for stronger profitability.

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?

Kalpataru Projects International (KPI) has been rated BUY with a target price of ₹1,450, reflecting strong execution visibility. KEC International, however, has been rated NEUTRAL with a target price of ₹950 due to a relatively more balanced outlook.

The differentiated stance underscores KPI’s stronger growth profile compared to KEC, even though both are well-placed in the sector’s upcycle.

For traders seeking timely market updates and actionable calls, don’t miss our daily insights — 👉 Nifty Tip | BankNifty Tip

Investor Takeaway

The capital goods sector is entering a healthier phase with improved ordering momentum, stable input costs, and expanding opportunities in HVDC and international markets. MOFSL’s selective stance favors KPI as a stronger play, while KEC remains steady but less aggressive. Investors may consider capital goods exposure as a medium-term structural story.

📌 Explore more free research at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services

tags: MOFSL on Capital Goods, Kalpataru Projects International, KEC International, Power Transmission Orders, HVDC Projects, Capital Goods Margins

Related Posts

Nifty / Bank Nifty Option Tip

Looking to trade intraday Nifty or Bank Nifty options? Our Nifty / Bank Nifty Option Tip shares trading calls with a defined entry, target and stop loss, so you know your risk before you trade. It suits traders who follow the market on a trading screen as well as those who place orders through their broker or by phone. Click on Image or Post Title to Read More.

Latest Video Reviews by Clients

Watch video reviews recorded by our clients about their experience with Indian-Share-Tips.com services, including the Nifty / Bank Nifty Option Tip and Delivery Tip. Click on Image or Post Title to Read More.

Awards and Recognition

See the awards and recognition Indian-Share-Tips.com has received over the years for its work in stock market research and investor education. Click on Image or Post Title to Read More.