Global brokerage firm JPMorgan has initiated coverage on ABB India and Praj Industries with a ‘Neutral’ rating, while assigning an ‘Underweight’ rating to Siemens India and Bharat Heavy Electricals (BHEL).<\/p>\n
In terms of preference within the industrials space, JPMorgan ranks L&T, CG Power, Cummins India, and Thermax as its top picks.
\n<\/p>\n
\nThe brokerage wrote in its report that India’s capex growth is stabilising at around 10%, following a period of strong 18-20% growth in the years after Covid-19. The recent slowdown is attributed to reduced government spending, owing to fiscal consolidation and execution challenges, as well as increased caution in the private sector due to subdued near-term demand, tariffs, and other constraints.
Although a return to the high 20%+ growth levels seen post-Covid is unlikely in the near term, JPMorgan believes a sustainable 10-11% capex growth rate is achievable, supported by several structural drivers: a continued policy push (with central government capex sharply higher year-to-date), strong power-sector investments, robust corporate balance sheets, healthy cash flows, and positive capital expenditure intentions.<\/p>\n
In this moderate but stable growth environment, the brokerage firm sees selective opportunities for earnings expansion.<\/p>\n
It prefers companies with strong structural tailwinds and optionality like CG Power, diversified end-market exposure like Cummins India, and margin improvement potential like Thermax.<\/p>\n","protected":false},"excerpt":{"rendered":"Global brokerage firm JPMorgan has initiated coverage on ABB India and Praj Industries with a ‘Neutral’ rating, while…\n","protected":false},"author":2,"featured_media":55203,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[79,40099,40100,18,19,40103,17,40102,40098,188,40101],"class_list":{"0":"post-55202","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-cg-power-share-price","10":"tag-cummins-india-share-price","11":"tag-eire","12":"tag-ie","13":"tag-industrial-stocks-to-buy","14":"tag-ireland","15":"tag-jpmorgan-note-on-industrials","16":"tag-larsen-toubro-share-price","17":"tag-markets","18":"tag-thermax-share-price"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/55202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=55202"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/55202\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/55203"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=55202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=55202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=55202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}