Daily Brief Industrials: Makino Milling Machine Co, Delhivery , Mitsubishi Heavy Industries and more

In today’s briefing:

Merger Arb Mondays (08 Dec) – Makino, Pacific Ind, Jinke, ENN Energy, Qube, NSR, Predictive Disc
2026 High Conviction Idea: ‘Delhivery’ India’s Largest Full-Range Logistics Platform
MHI (7011): AI Power Demand and Gas-Turbine Supercycle Accelerate

Merger Arb Mondays (08 Dec) – Makino, Pacific Ind, Jinke, ENN Energy, Qube, NSR, Predictive Disc

Delhivery has consolidated its leadership position in Express Parcel segment through ‘Ecom Express’ acquisition. We believe this is a cash-cow business with consistent mid-teens industry growth and sustainable 16-18% margins.
Express PTL business is taking off along with the industry cycle. Supported by Delhivery’s tech stack and deep infrastructure, it is ready to corner market share with margin expansion.
We estimate 15% revenue CAGR, translating to an EBITDA range of 1,000-1,300cr for FY28 (vs 376cr in FY25). With Net cash of 4,200cr, stock trades at EV/EBITDA of 20-25x.

MHI benefits from two long-term supercycles—AI-driven power generation and global defense rearmament—with a recent pullback offering an appealing re-entry point.
A global gas-turbine supercycle is boosting orders, pricing power, and margins as demand from hyperscalers and utilities exceeds manufacturing capacity.
Markets have yet to fully price in structurally higher earnings and valuations driven by AI-linked power demand and persistent turbine supply constraints.

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