KEC International order inflows signal sector strength
Engineering major KEC International has bagged fresh orders worth nearly Rs 14,000 crore so far this financial year — about 50% of its annual guidance of Rs 28,000–30,000 crore. Pandey said this performance reflects continued momentum in the transmission and distribution (T&D) segment, which remains one of the most promising themes within the infrastructure space.
“We like the entire T&D segment — both KEC International and Kalpataru Power look strong. The execution momentum is picking up, and we expect margin expansion over the next one to two years,” Pandey said.
He added that while the power generation story often takes the spotlight, power transmission and distribution will likely emerge as a key growth driver due to strong execution visibility and government capex push.
HCL Technologies shows improvement, but valuations cap upside
Commenting on the latest HCL Technologies earnings, Pandey said the numbers were broadly encouraging with signs of improvement across verticals. The company’s AI monetization, though still small at about 3% of revenue, is a step in the right direction.
However, he noted that valuations are rich, limiting near-term upside.“HCL Tech’s valuations are now similar to Infosys and TCS, which means it needs stronger earnings growth to justify further re-rating,” he said.“TCS is already commanding a premium due to its pivot toward data centres, while HCL’s numbers need to improve more meaningfully.”
Pandey cautioned that while valuation multiples for Indian IT are near the lower end of their four-year range, the overall macro environment remains challenging, particularly given rising protectionist policies in global markets and subdued discretionary tech spending.
“Until the global AI boom cools off, we don’t expect Indian IT stocks to deliver strong price performance,” he said.
Tata Motors demerger could unlock value for investors
On Tata Motors, which officially demerged its Passenger Vehicle (PV) and Commercial Vehicle (CV) businesses this week, Pandey said the vertical split is likely to create significant value for shareholders.
“We are expecting Rs 300 per share for the CV business, based on 11x FY27 EV/EBITDA multiples, in line with peers,” he said.
“The PV business could trade between ₹450–500, supported by strong growth visibility and the brand’s leadership in the electric vehicle segment.”
Pandey added that the sum-of-the-parts valuation of the two independent businesses implies overall value creation, making Tata Motors one of the more anticipated demergers in recent years.
“Both PV and CV businesses have different growth trajectories, so the split allows investors to play each theme independently,” he said.
LG Balakrishnan listing to draw investor interest
On the debut of LG Balakrishnan & Bros (LG) in the secondary market, Pandey said the listing is expected to see a positive pop, backed by a strong grey market premium.
Brokerages have pegged the fair value between ₹1,750 and ₹1,800, compared to the IPO pricing of ₹1,500, which was seen as reasonable.
“The IPO was attractively priced at 37x trailing 12-month earnings, and this is the first time in a long while that a sector leader is being listed,” Pandey noted.
“The company’s strong market share across categories justifies a valuation premium, though we’ll need to see post-listing performance before assigning a definitive multiple.”
Stock-specific action to dominate ahead
Pandey expects stock-specific opportunities to dominate in the near term, with sectors like infrastructure, select auto, and utilities likely to outperform.
He maintained that earnings recovery in IT, while encouraging, will take a few more quarters to translate into sustained market performance.
“While the broader market remains range-bound, focused plays in power T&D, order-heavy EPC companies, and value-unlocking stories like Tata Motors are worth tracking,” he said.
as a Reliable and Trusted News Source