Capital Goods-Non Electrical Equipment · KKC
Gensets
from 5,402 today
KKC's 1QFY27 result was lower than expectations due to margin weakness from higher RM prices and delayed price hikes, though revenue showed strong growth led by powergen and data center demand. We reiterate our BUY rating with a TP of INR6,500 based on an average of 45x P/E and DCF on two-year forward estimates.
We upgrade our rating from 'Reduce' to 'Hold' given the recent correction in stock price and the medium-term demand outlook remaining encouraging, aided by the growing data centre opportunity, healthy demand in domestic powergen, and a higher mix of distribution segment.
Cummins India reported better-than-estimated topline growth while margins and profitability faltered in Q1FY27 due to input cost volatility. Management remains optimistic about strong domestic momentum driven by key end-markets, and the rating is maintained as BUY with a revised target price of INR 6,604.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
