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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Investor Takeaway

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Why Is MOFSL Cautiously Optimistic On Indian Banks Despite Earnings Cuts?

Motilal Oswal Financial Services (MOFSL) has published a detailed analysis of the banking sector, highlighting sharp earnings downgrades in recent months. While margin pressure, weak loan growth, and rising credit costs have dampened near-term sentiment, MOFSL remains optimistic on medium-term growth, projecting a 17% EPS CAGR over FY26-28.

What’s Driving The Earnings Downgrades?

The steepest impact has been felt by mid-sized private banks with high exposure to the microfinance sector. Bandhan Bank, Equitas, IDFC First Bank, and RBL Bank witnessed a dramatic 41%-95% collapse in consensus earnings estimates, underlining sectoral vulnerabilities.

Which Banks Are Showing Resilience?

This divergence reflects stronger balance sheets, better liability franchises, and diversified loan books, allowing these banks to withstand sector-wide pressures more effectively.

What Is MOFSL’s Outlook?

The brokerage believes that margin stabilization, normalization of credit costs, and improved loan growth will drive the rebound. Investors may need to brace for near-term volatility but should not ignore the longer-term growth prospects of well-capitalized banks.

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Investor Takeaway

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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.

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Why Is JP Morgan Cutting India Concentration In Emerging Markets Index?

JP Morgan, one of the world’s leading financial institutions, has announced a strategic adjustment to its widely tracked Emerging Markets (EM) Index. This change directly impacts India’s weight in the index and reflects growing concerns among investors about over-concentration in a few large economies.

What Is Driving JP Morgan’s Index Adjustment?

The move is not targeted specifically at India but is part of a broader rebalancing across all countries included in the EM index. Such adjustments align the index more closely with investor expectations and global diversification principles.

How Will The Changes Be Implemented?

For investors, this means smoother adjustments in fund allocations rather than abrupt shifts that could cause volatility. India’s reduced weight will make room for other emerging markets, improving yield dynamics and overall balance.

What Does This Mean For India?

Investors should note that India continues to attract global capital due to its strong economic fundamentals, reforms, and corporate earnings momentum. The adjustment simply reduces excessive reliance on Indian equities in EM portfolios.

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Investor Takeaway

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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.

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Why Is HSBC Bullish On OMCs With Buy Calls On BPCL, HPCL And IOC?

HSBC has reiterated its positive stance on India’s Oil Marketing Companies (OMCs), highlighting that government support and favorable demand conditions are driving steady performance. The brokerage notes that upside risks to estimates remain even if crude oil prices stabilize at current levels.

About HSBC’s OMC Outlook

The report emphasizes the structural role of OMCs in India’s energy landscape and underlines how policy measures, subsidy support, and strong refining economics are bolstering earnings visibility. HSBC maintains BUY ratings across the board for BPCL, HPCL, and IOC.

Target Price Revisions

HSBC has maintained a bullish outlook with upward target revisions for OMCs, signaling potential upside for investors.

Key Drivers Of OMC Performance

The brokerage highlights that strong refining economics, stable marketing margins, and government subsidy mechanisms are cushioning the sector against oil price volatility. In addition, resilient domestic fuel demand is aiding volume growth.

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Broader Implications

HSBC points out that OMCs’ performance has wider implications for India’s energy security and inflation management. Stable fuel pricing policies ensure consumer affordability, while higher margins strengthen the financials of OMCs, making them attractive to long-term investors.

Investor Takeaway

HSBC’s BUY calls on BPCL, HPCL, and IOC highlight confidence in OMC resilience. Government support, robust refining margins, and stable demand trends provide a cushion against oil price risks. For long-term investors, the sector offers compelling opportunities.

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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.

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Why Did Citi Raise Ashok Leyland’s Target Price To ₹155 On Better Demand Outlook?

Citi has reiterated its BUY rating on Ashok Leyland, revising its target price to ₹155 (vs ₹140 earlier). The brokerage has adjusted earnings and margin estimates upwards on the back of improving demand visibility, GST rate cuts, and higher operating leverage.

About Citi’s Revised View

The revision stems from a combination of slightly better demand conditions and operating margin improvements. Citi rolled forward its valuation basis to FY27E while keeping its EV/EBITDA multiple unchanged at 15x.

Volume And Demand Outlook

Minor changes to volume estimates were made, reflecting a better-than-expected demand environment. The GST rate cuts have also provided incremental support to vehicle sales, particularly in the commercial vehicle segment where affordability is key.

Margins And Earnings Revisions

Citi has increased its EBITDA margin assumptions, citing improved gross margins and stronger operating leverage. This has resulted in an upward revision of EBITDA estimates by 4–6% over FY26–28E, and earnings estimates by 5–6% for the same period.

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Valuation And Target Price

Citi has rolled forward its valuation from Sep’26E to FY27E, keeping its EV/EBITDA multiple unchanged at 15x. This results in a new target price of ₹155 compared to the earlier ₹140, implying meaningful upside from current levels.

Investor Takeaway

Citi’s bullish stance on Ashok Leyland highlights confidence in the CV cycle recovery, margin improvements, and GST-led demand boost. The raised target of ₹155 underscores upside potential for long-term investors.

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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.

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Why Is India’s Data Centre Capacity Poised To Surge 5x By 2030?

Jefferies has published a detailed outlook on India’s data centre industry, projecting a fivefold increase in capacity to 8GW by 2030. This expansion will be driven by accelerating digital adoption, enterprise cloud migration, and the rapid scaling of AI-driven workloads. The brokerage sees significant opportunities for telecom operators, infrastructure companies, and power providers.

About Jefferies’ India Data Centre Report

The note highlights that India’s data centre sector will require a cumulative capital expenditure of $30 billion to meet rising demand. Leasing revenues are expected to multiply five times, reaching $8 billion by the end of the decade.

Capacity And Revenue Outlook

India’s data centre capacity is projected to rise from the current 1.6GW to 8GW by 2030, marking a 5x jump. Leasing revenues, which stand near $1.5 billion, are expected to surge to $8 billion, offering long-term visibility for developers and investors.

Key Beneficiaries

Jefferies expects telecom majors Bharti Airtel, Reliance, and Adani Enterprises (ADE) to collectively account for 35–40% of India’s total data centre capacity. Beyond them, infrastructure developers, power suppliers, and advanced cooling solution providers will see multi-year growth tailwinds.

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Infrastructure And Power Angle

The massive scale-up will put heavy demands on power availability and cooling infrastructure. Energy efficiency and renewable integration will become core to cost competitiveness and sustainability. Companies offering green power, liquid cooling, and modular design solutions will benefit disproportionately.

Investor Takeaway

India’s data centre ecosystem is on the cusp of a structural transformation. Telecom players like Bharti Airtel, Reliance, and Adani Enterprises will lead capacity creation, while infrastructure, power, and cooling solution firms will capture adjacent value. With $30 billion in projected capex and a 5x leasing revenue jump, the sector offers multi-year growth opportunities.

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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