News

Capital Goods Stocks To Buy: Emkay recommends these names for up to 30% upsideAccording to Emkay Global, the capital goods segment has benefited from a structural upturn over the past four years, driven by a resurgence in capital expenditure across several industries.By Meghna Sen   May 5, 2025, 11:56:41 AM IST (Published)2 Min ReadBrokerage firm Emkay Global has initiated coverage of the Engineering & Capital Goods sector, highlighting that the capital goods segment has benefited from a structural upturn over the past four years, driven by a resurgence in capital expenditure across several industries.

Emkay has a ‘Buy’ rating on GE Vernova T&D India, with a price target of ₹2,050, implying an upside of 31% from Friday's closing levels. The brokerage believes that the company is well-positioned to benefit from both domestic and international power transmission capex. Order inflows have seen a massive jump, and visibility remains robust.

The brokerage also has a ‘Buy’ rating on Hitachi Energy India, with a price target of ₹16,870. This target suggest a potential upside of 15% from the stock's last closing levels.

CG Power & Industrial Solutions has been assigned a ‘Buy’ rating and a price target of ₹765. Backed by a strong product portfolio, Emkay believes CG Power is well-placed to capitalise on the cyclical upturn across key segments.

Emkay has an ‘Add’ recommendation on ABB India, with a price target of ₹6,100. The brokerage mentioned that ABB has benefited from strong order inflows and consistent margin expansion. However, it expects order inflows to moderate due to the absence of large orders, muted private capex, and margins nearing peak levels.

Emkay wrote in its note that, globally, investment momentum continues in areas such as energy transition, decarbonisation, grid expansion, and automation. According to the International Energy Agency (IEA), global energy investment is expected to exceed $3 trillion in 2024 and eventually reach $4.5 trillion per annum, with a significant portion directed toward clean technologies such as renewables, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency improvements, and heat pumps.

India, too, is progressing toward its target of reducing carbon intensity by 45% by 2030.

Key themes likely to attract continued investment include renewables, transmission and distribution (T&D), data centers, railways (e.g., Vande Bharat train sets and metro systems), electric vehicles, and automation.

Order inflows and backlogs remain robust for most players — something Emkay views as crucial for sustaining valuation multiples. A pickup in private capex in the near to medium term will be a key catalyst for further sectoral growth, the brokerage added.

Shares of Hitachi Energy India and CG Power and Industrial Solutions are trading with gains of up to 1.5%, while GE Vernova T&D India is down 1.38%.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsABB IndiaCG Power and Industrial Solutionsshare market today