Hardware Tech. & Equipment share price target

of 50% and 30%, respectively. Profitability is set to improve sharply, with margin expansion across the board driven by increasing exposure to high- their strategic focus on higher margin sectors and orders, which should further support margin expansion in the coming quarters. We expect our EMS universe to register sales/EBITDA/PAT growth of 7.5%/73.5%/59.1% YoY in Q1FY26, on the back of robust order execution and margin improvement led by cost rationalization and increased contribution from high-margin segments. We continue our positive view on EMS companies...

Electronics manufacturing services (EMS) companies continue to see healthy revenue growth despite a high base. In 4QFY25, we expect EMS coverage companies to see strong revenue growth on account of (1) healthy order flow and execution, (2) customer addition, (3) diversification in sector penetration, and 4) wide product portfolio. The coverage companies are focusing on higher margin orders/sectors, which is driving their operating margins. We expect our EMS universe to register sales/EBITDA/PAT growth of 38.2%/52.6%/44.0% YoY, on the back of robust order execution and margin...

We hosted the management of two engineering and capital goods companies in our Nuvama Emerging Ideas Conference 2023,' namely Transformers & Rectifiers (India) and Elecon Engineering Company.

We hosted the management of two static process equipment companies in our Nuvama Emerging Ideas Conference 2023,' namely The Anup Engineering (ANUP) and Kilburn Engineering (KEL).

For our capital goods coverage universe, we expect revenue growth momentum to continue in H2FY23 for both EPC and product companies, led by robust order backlog, improving supply chain and hence, overall pick up in execution. We expect profitability to improve with lower commodity prices and price hikes announced by the companies in the recent past.