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Informist, Friday, Jul 26, 2024

MUMBAI - With the earnings season in full swing, stock-specific reactions are likely next week. Among major companies, Bharat Heavy Electricals Ltd, Titagarh Rail Systems Ltd, RITES, Thermax, and KEI Industries are set to report their quarterly results next week.

Apart from earnings, sentiment is likely to be positive for stocks in the sector after the Union Budget showed the government will continue with its plans for capital expenditure. On Tuesday, the Budget projected the central government's capital expenditure for the current financial year at 11.11 trln rupees, unchanged from the Interim Budget. The capital expenditure for 2024-25 is up 17.1% from 9.49 trln rupees last year.

"Continuation of government capex is positive, along with their support for consumption," said Vinit Bolinjkar, head of research at Ventura Securities. He said orders from the government are set to pick up soon, and this will be a positive for Indian corporates in the coming quarters.

This week, Larsen & Toubro Ltd reported that its consolidated net profit increased 11.7% on year to 27.86 bln rupees in the quarter ended June and its revenue from operations increased by 15.1% to 551.20 bln rupees. Analysts had estimated net profit of 28.14 bln rupees and revenue from operations of 515.47 bln rupees. Strong growth in revenue and operating margin from the infrastructure projects segment were the key drivers for the company's performance in the quarter.

Analysts were largely positive post L&T's earnings with Nomura Global Market Research pointing towards an increase in sales from core businesses and improvement in earnings before interest, taxes, depreciation, and amortisation margin. The brokerage raised the company's stock price to 4,100 rupees from 4,000 rupees earlier.

Among companies set to report earnings next week, BHEL's revenue for Apr-Jun is expected to be in the range of 56.38 bln rupees to 62.22 bln rupees, compared with 50.03 bln rupees in the year-ago period and 82.60 bln rupees in the March quarter, according to estimates of three brokerage firms. It is likely to post a net loss of 2.60 bln rupees or 3.28 bln rupees for the quarter ended June, according to the estimates of Nuvama Wealth Management and Kotak Institutional Equities, respectively.

TOP HEADLINES
* Praj Ind Apr-Jun consol sales fall 5% YoY but PAT rises nearly 44%
* RITES to provide consultancy svcs for medical college in Amravati
* L&T consol net profit rises 12% YoY Apr-Jun, misses Street estimate
* KEC Intl gets 14.2-bln-rupee transmission, distribution project orders
* SBI Mutual Fund raises stake in Thermax to 5.1% from 4.9%
* Schaeffler India Apr-Jun PAT rises 6.9% YoY to 2.54 bln rupees
* Suzlon Apr-Jun consol PAT up 3-fold YoY at 3.02 bln rupees
* Gensol Engg winning bidder for 116-MW solar projects in Gujarat
* SC asks Crompton, V-Guard to explore settlement in trademark case

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj

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