Capital Goods Sector Check - Powergenset Demand Remains Strong: Motilal Oswal

Motilal Oswal Report

Our channel checks with genset players indicate that demand is fairly strong across key segments and that players are ready for the emission shift. Inventory levels for CPCB 2 based gensets will start coming down from April 2024 onward as production for CPCB 2 based gensets has already stopped.

Demand may see minor disruption during election months; however, underlying long-term growth drivers remain intact even after minor disruption.

Pricing is higher by 20-40% across nodes and we expect it to be passed on to customers fully from July 2024 onward.

Companies are already taking initiatives for exporting new products, which will start reflecting in few quarters.

We maintain our positive stance on key players in the genset industry and prefer Kirloskar Oil Engines Ltd. over Cummins India Ltd. at the current valuations

Click on the attachment to read the full report:

DISCLAIMER

This 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.