The outlook for capital expenditure (capex) growth in FY26 remains cautious, with an overall growth expectation of 10% YoY, lower than anticipated as per the brokerage firm, Motilal Oswal. While sectors like power transmission and Distribution, renewables, defence, data centers, electronics, semiconductors, and battery storage continue to show potential, risks exist regarding order inflows in the industrial sector.
The Private capex in base industries has yet to show progress, and there’s no near-term support for lower-than-expected government capex allocation, the brokerage firm said. Companies focused on railways, water, road construction, and private capex may face challenges due to lower order inflows in the upcoming 1 to 2 years. Likewise, companies with strong exposure to power T&D, defence, renewables, and high-growth areas are expected to fare better as per Motilal Oswal.
The recently announced Union Budget for 2025-26 keeps total capex at around Rs. 11.2 lakh crore. They revised the FY25 capex to around Rs. 10.2 lakh crore and increased the defence allocation by 13 percent. The Key initiatives include asset monetization, nuclear energy, incentives for shipbuilding, and continued interest-free loans for state capital investments.
Listed below are some of the Capital Stocks with Motilal Oswal’s target prices based on its outlook on the sector and companies after the Union Budget 2025-26.
Larsen & Toubro
Larsen & Toubro (L&T) is a leading Indian multinational conglomerate specializing in engineering, manufacturing, construction, and technology services which operates in over 50 countries.
With a market capitalization of Rs. 4,51,042.85 Crores, the shares of Larsen & Toubro Limited were trading at Rs. 3,280 per equity share, down 4.85 percent from its previous day’s close price of Rs. 3,447.30. The brokerage firm has given a ‘Buy’ rating with a target price of Rs. 4,100 per share with a potential upside of 18.93 percent from Saturday’s closing price.
ABB India
This Automation company was established in 1949. They are one of the leading technology companies that specializes in electrification and automation and provide innovative solutions for industries.
With a market capitalization of Rs. 1,10,579.09 Crores, the shares of ABB India Limited were trading at Rs. 5,218 per equity share, down 5.25 percent from its previous day’s close price of Rs. 5,500.15. The brokerage firm has given a ‘Buy’ rating with a target price of Rs. 7,200 per share with a potential upside of 30.90 percent from Saturday’s closing price.
Siemens India
Siemens India Ltd was established in 1922 in India. They are one of the leading engineering companies that specializes in electrification, automation, and digitalization across various sectors.
With a market capitalization of Rs. 1,85,891.21 Crores, the shares of Siemens India Limited were trading at Rs. 5,219.90 per equity share, down 9.24 percent from its previous day’s close price of Rs. 5,751.05. The brokerage firm has given a ‘Neutral’ rating with a target price of Rs. 6,300 per share with a potential upside of 9.54 percent from Saturday’s closing price.
They are focused on sustainable energy solutions while operating in over 140 countries and delivering innovative technologies for electrification and automation.
With a market capitalization of Rs. 48,717.10 Crores, the shares of Hitachi Energy India Limited were trading at Rs. 11,494.85 per equity share, down 5.90 percent from its previous day’s close price of Rs. 12,215.60. The brokerage firm has given a ‘Sell’ rating with a target price of Rs. 10,500 per share with a potential downside of 14.04 percent from Saturday’s closing price.
Bharat Electronics
It was established in 1954. It is a Navratna public sector enterprise that specializes in defence electronics, manufacturing advanced systems for the Indian military.
With a market capitalization of Rs. 1,98,350.85 Crores, the shares of Bharat Electronics Limited were trading at Rs. 271.35 per equity share, down 3.71 percent from its previous day’s close price of Rs. 281.80. The brokerage firm has given a ‘Buy’ rating with a target price of Rs. 360 per share with a potential upside of 27.75 percent from Saturday’s closing price.
Thermax
The company was established in 1966 and offers sustainable engineering solutions in energy, water treatment, and pollution control.
With a market capitalization of Rs. 42,500.67 Crores, the shares of Thermax Limited were trading at Rs. 3,566.80 per equity share, down 7.74 percent from its previous day’s close price of Rs. 3,866.15. The brokerage firm has given a ‘Sell’ rating with a target price of Rs. 3,500 per share with a potential downside of 9.47 percent from Saturday’s closing price.
Cummins India
Cummins India was established in 1962. They are one of the leading manufacturers of diesel and natural gas engines while offering diverse power solutions through multiple business units across the country.
With a market capitalization of Rs. 74,569.57 Crores, the shares of Cummins India Limited were trading at Rs. 2,690.10 per equity share, down 3.89 percent from its previous day’s close price of Rs. 2,798.95. The brokerage firm has given a ‘Buy’ rating with a target price of Rs. 4,100 per share with a potential upside of 46 percent from Saturday’s closing price.
Written by Santhosh S
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