Buy

Valuation at 17x P/E on FY27E earnings, is at significant discount as compared to peers' valuations. Despite factoring in the fact that NRB's presence in only auto space, we believe that this seems unjustified considering the company's focus on growth. We maintain BUY on NRB with...

Kirloskar Oil Engines Ltd. (KOEL) posted splendid financial performance in Q2FY26. Power Gen (PG) segment clocked in substantial growth of 41% YoY to come in at ~Rs6.8Bn owing to healthy volume growth and increased HHP contribution. The Industrial segment also clocked in strong growth of 40% YoY emanating from the defense and the railways segment. Demand trends stay positive with infrastructure verticals such as residential and commercial realty exhibiting good demand. Demand also continues to be broad based across various infrastructure verticals. The management wants to focus actively on...

Solid order-book underpins growth as execution accelerates About the stock: Hindustan Aeronautics (HAL), one of the largest Defence PSU in India, is engaged in design, development, manufacture, repair, overhaul, upgrade...

Longer term orders pipeline remains robust from both domestic and export markets: Electronic warfare, Radars & Avionics remain the key product segments for company (contributed ~81% to total FY25 revenue and ~71% of total order backlog) for both domestic and exports markets. Moreover, company sees sizable opportunity in other key product segments also like ATE (automated test equipment), Check-out systems, Fire control systems & seekers for existing & future Brahmos missile programs. Upcoming BrahMos-II program, which is also expected to...

Solar Industries India Limited (SOIL)’s Q2FY26 EBITDA of INR 5.5bn rose 24%/3% YoY/QoQ; though, slightly lower than consensus estimate of INR 5.7bn.

Well poised to see significant recovery in explosives & exports/overseas segment: With market leading share of ~25% in domestic industrial explosives market, we believe that company is well poised to grow steadily led by healthy demand prospects from segments like mining, housing and infrastructure. Though domestic explosives segment remained muted during the quarter, we expect recovery going ahead led by healthy demand from housing, infra and mining sectors. With an order backlog of 1600+ crore in explosives and stable raw material prices, we expect ~14%...

infrastructure sectors such as power T&D, railways, civil, urban infrastructure, solar, smart infrastructure, oil & gas pipelines and cables. A strategic mix in portfolio of T&D (65%) and non-T&D (35%) Strong T&D prospects in domestic and international markets (35% of backlog from international markets) Q2FY26 performance: KEC reported a robust Q2FY26 with Revenue at 6091 crore up 19% YoY, mainly from T&D business which grew 44% YoY. The renewables and cables business grew by 5% and 19% YoY to 190 crore and 524 crore, whereas...

KEC posted good execution growth of 19% YoY and margin improvement of 80bp YoY in 2QFY26. The slight miss in PAT was attributed to higher interest expenses, which moved up due to higher debt and higher working capital.

Strategic qualitative initiatives to drive growth: AIA witnessed a Mining conversion strategy to lead volume growth recovery: AIA has had a key breakthrough in its mining conversion strategy. It has bagged its maiden order worth $32.9 million (~291 crore) from a leading copper mining international company in Chile for the supply of high-chrome grinding media, strengthening AIA's foothold in the world's largest copper market, reinforcing confidence in volume recovery and earnings growth from FY27E onward. AIA's volume declined 14% over FY24-25 to 255000...

CPVC piping in India. As of FY25, it has 26 manufacturing units with an aggregate capacity of 5.49 lakh TPA (3.8 lakh TPA Pipes, Water tanks & Bathware, 1.3 lakh TPA Adhesives & Sealants, 36000 TPA Paints). It has a strong network of over 2.5...

Prince Pipes and Fittings (PRINCPIP) reported a steady quarter amid the ongoing challenges of volatile pricing and the extended monsoon, affecting demand.

Happy Forgings (HFL)’s Q2FY26 performance exceeded our estimate on all fronts. While domestic farm/PV/industrials continue to do well, HFL’s domestic CV biz. may likely gain strength ahead. Weak macro scenario continues to weigh on HFL’s exports.

Happy Forgings’ (HFL) 2QFY26 PAT at INR734m was largely in line with our estimate. The key highlight of 2Q was its record high margins at 30.7% (+150bp YoY) in a weak demand environment, especially in exports.

Cummins India (KKC) once again reported a strong set of results with a beat on all parameters. Revenue growth was led by sharp growth in powergen and healthy growth in distribution and exports.

ABB’s 3QCY25 performance was in line with our estimates. The company remains affected by lower ordering as well as margin pressure due to Quality Control Order (QCO) implementation, higher RM costs, and increased competition.

Inox India (Inox) saw a steady quarter as earnings aligned with our estimates. Revenue stood at INR 3.6bn (+17% YoY). EBITDA margins improved 100bps YoY to 21.8%; as a result, EBITDA expanded 22% YoY to INR 0.8bn.

We maintain our BUY recommendation on the stock.

Avalon Technologies (AVALON) reported a robust quarter, with revenue growing 39% YoY in 2QFY26, fueled by a strong performance in both the India (up 31% YoY) and US businesses (up 44%).

MTAR Technologies (MTARTECH) witnessed a setback in its growth trajectory with a weak 2QFY26. Revenue/EBITDA declined 29%/54% YoY, as execution slowed across segments amid tariff-related negotiations.

We maintain a BUY rating on the stock.