Goldman Sachs (NYSE:GS) has initiated coverage on two key players in the Indian electrical equipment industry, assigning distinct ratings that reflect their current market positions and future prospects. The investment bank gave Polycab India a "Buy" rating with a price target of ₹5,750, acknowledging the company's potential to capitalize on infrastructure expansion and the burgeoning electric vehicles market. On the other hand, KEI Industries received a "Neutral" outlook with a price target of ₹2,730. This assessment was based on the company's existing capacity constraints, despite recognizing its growth opportunities supported by upcoming expansion projects and enhanced retail efforts.
In addition to Goldman Sachs' analysis, JPMorgan (NYSE:JPM) has maintained an "Overweight" rating for Reliance Industries Limited (RIL), with a target price of ₹2,810. This valuation takes into account RIL's strong contributions from its telecom and retail sectors, reduced impact from commodity price volatility, refining operation benefits, and its impressive retail sector performance.
Morgan Stanley (NYSE:MS) continues to hold an "Underweight" stance on Indraprastha Gas Limited (IGL), with a target price of ₹432. While noting IGL's progress in developing LNG trucking infrastructure and its logistics partnerships, Morgan Stanley suggests that oil marketing companies such as HPCL, BPCL, and IOCL may stand to gain more from the LNG trucking trend.
The market has responded to these evaluations with Polycab's equity value experiencing a slight increase of 0.8%, reaching ₹5,350. In contrast, KEI Industries saw its stock price contract by 1.5%, closing at ₹2,919.95 (USD1 = INR83.318).
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