
Motilal Oswal Securities notes that demand for gensets in the capital goods sector showed weakness in October and November 2024 but has started recovering. The low-to-mid kVA ranges, which are more price-sensitive and competitive, experienced pronounced softness, while higher kVA ranges sustained normal demand levels.
Prices have corrected by 6-7% but remain elevated YoY. Channel partners anticipate this transitionary phase to persist for another quarter before normalizing demand. MOSL remains optimistic about the long-term prospects of the sector, maintaining ‘Buy’ ratings on Cummins India with a target price of ₹4,250 and Kirloskar Oil Engines (KOEL) with a target price of ₹1,540.