Thermax’s last‑trading price hit ₹3,256, a 7% jump from Thursday’s close, after Kotak Institutional Equities shifted the stock to a “buy” and set a ₹4,000 target—an upside of 27.5% from the current level.
Kotak noted the company trades at 35× its FY28 earnings, a figure that sits comfortably above the capital‑goods median of 28×, and cited a 16% revenue CAGR for FY26‑29 as the main growth driver. The brokerage pointed to a 5‑6% boost in early‑stage businesses, especially data‑centre and biogas, as a key catalyst.
CESC is now rated “add” after a downgrade from “reduce,” but its price target was trimmed from ₹172 to ₹145, cutting potential upside to 12.6%. The 35% price correction from the peak is attributed to slower renewable‑capacity roll‑outs, yet the stock’s 10× FY28 PE makes it an attractive play if execution improves.
KEC International also received an “add” rating with a ₹400 target, 14.4% upside, but Kotak lowered FY27‑29 EPS estimates by 6% to 26%. The company’s 60% one‑year correction stems from margin pressure in non‑T&D segments and a seven‑month debarment from PGCIL tenders, though a strong cables pipeline and international expansion could temper the slide.
In the broader capital‑goods space, the trio’s upgrades reflect a sector pivot toward renewable infrastructure, with investors eyeing higher‑margin power and services units. The next earnings cycle will test whether the 16% revenue CAGR and margin improvements can materialise, as analysts await FY27 quarterly results for confirmation.