Capital Goods Sector Check - Genset Demand Remains Strong In Q2: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Our channel checks with genset players indicate that demand has remained strong in Q2 FY25, barring initial few days of norm shift. Demand is driven by channel inventory filling, along with fresh demand from other user industries. The festive season from Sep-24 to mid-Nov-24 too will keep genset demand strong. Some part of the demand, which was earlier driven by pre-buying from the residential and commercial segments, moderated in Jul-Aug-24. Prices are higher by 20-40% and may remain high until the festive season, after which we can expect some moderation. Thus, our initial reading indicates that volumes have likely improved YoY but may have declined 10-12% QoQ. Overall revenue growth for Q2 FY25 will be supported by price increases too. Export markets are growing selectively and an uptick will start reflecting in a few quarters. We maintain our positive stance on key players in the genset industry and see Cummins India Ltd. gaining market share in the current scenario, with strong demand in the below-800kVa and HHP segments. We maintain Buy on both Cummins (target price: Rs 4,300) and Kirloskar Oil Engines Ltd. (target price: Rs 1,540)..Click on the attachment to read the full report:.Nocil - Global Expansion, Capacity Additions Crucial For Growth: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Capital Goods Sector Check - Genset Demand Remains Strong In Q2: Motilal Oswal

The brokerage maintains its positive stance on key players in the genset industry and see Cummins India gaining market share in the current scenario.

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Capital Goods Sector Check - Genset Demand Remains Strong In Q2: Motilal Oswal

The brokerage maintains its positive stance on key players in the genset industry and see Cummins India gaining market share in the current scenario.

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