Buy BEL, HAL, Cummins, L&T for 17-24% upside; stay neutral on Siemens, says Citi

Foreign brokerage Citi has initiated coverage on six major Indian industrials, highlighting that the country’s capex cycle is transitioning from acceleration to consolidation. The brokerage noted that the cycle remains anchored by robust government investments, which continue at elevated levels, while corporate balance sheets are healthier, setting the stage for a broader private capex recovery over the medium term.

Cummins India and Bharat Electronics Ltd (BEL) are its preferred picks. It also has 'Buy' rating on Larsen & Toubro (L&T), Hindustan Aeronautics Ltd (HAL), 'Neutral' rating on Siemens Ltd and 'Sell' on ABB India. The brokerage suggested target prices that hinted at 17-24 per cent potential upsides for its 'Buy' picks. The target of Siemens suggests 7 per cent potential upside;