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Informist, Friday, Aug 2, 2024

MUMBAI - With the earnings season in full swing, stock-specific action is likely next week. Among the major companies from the sector, Bharat Dynamics, Cummins India, Rail Vikas Nigam are set to report their quarterly results next week.

Cummins India is likely to report 36% year-on-year growth in net profit to 4.29 bln rupees in Apr-Jun, according to the average of estimates from seven brokerages. "We expect EBITDA margin to be closer to 18.4%, lower on quarter on account of a larger share of non-hydropower plant power generation revenues (due to pre-buying)," Kotak Institutional Equities said in its earnings preview.

Sentiments are positive for the sector on expectations of rise in orders from the government in the coming quarters as the Budget overhang is behind us. Valuations remain the only deterrent for analysts, who have advised caution considering sharp gains in several capital goods stocks in the past year.

Among the earnings announced this week, the net profit of KEI Industries for the June quarter increased 24% from a year ago to 1.50 bln rupees and revenue rose nearly 16% on year to 20.60 bln rupees. Elara Capital has raised the stock's target price to 4,500 rupees from 4,250 rupees earlier on strong volume growth, especially in the extra high voltage cable segment. However, it expects a limited upside from here and has an accumulate rating on the stock.

Among the smaller companies, Cochin Shipyard, Garden Reach Shipbuilders & Engineers, PNC Infratech, and Finolex Cables are set to report their earnings next week.

TOP HEADLINES
* Thermax Apr-Jun consol PAT up nearly 97% YoY to 1.16 bln rupees
* KSB Apr-Jun consol PAT rises 8.4% YoY to 681 mln rupees
* Action Construction Apr-Jun consol PAT up 25% YoY at 842 mln rupees
* RITES Apr-Jun PAT falls 32.4% on year, sales down nearly 10%
* BHEL net loss widens YoY to 2.13 bln rupees in Apr-Jun
* L&T gets 'significant' order to construct automobile plant
* Samvardhana Motherson to Friday mull options to raise funds
* Titagarh Rail Apr-Jun consol sales fall 0.8% YoY, PAT rises 8.4%
* Carborundum Apr-Jun consol PAT falls 0.2% on year, sales down 0.5%
* Suzlon Energy gets NSE warning letter for non-compliance of SEBI norm
* L&T arm signs deal with Valor Estate to develop Mumbai project
* Kalpataru Projects Apr-Jun PAT falls 7.1% YoY to 1.17 bln rupees
* Maharashtra Seamless Apr-Jun consol PAT down 37.4% YoY, sales fall 6%
* Adani Wilmar posts 3.13 bln rupees consol PAT Apr-Jun vs loss yr ago
* AIA Engg board to mull share buyback on Aug 7
* L&T gets multiple 'large' orders for power transmission, distribution
* KEC Intl Apr-Jun consol PAT doubles on year to 875.8 mln rupees
* BHEL gets letter of intent for EPC contract worth over 100 bln rupees

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 Ashish Shirke

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