Capital Goods Stocks Outlook
Stock-specific action seen on Jul-Sept results
This story was originally published at 06:00 IST on 19 October 2024
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MUMBAI – With major capital goods companies set to report their Jul-Sept earnings next week, action is likely to remain stock specific in the sector, analysts said. Among sector majors, Bharat Electronics Ltd. and CG Power and Industrial Solutions Ltd. are set to report their quarterly results next week.
Bharat Electronics' net profit in Jul-Sept may rise 6% on year to INR 8.6 billion and its revenue may grow 19% to INR 47.6 billion, according to an average of estimates from nine brokerages. A robust order book and its execution are likely to help the company report healthy growth in its Jul-Sept earnings, analysts said. The company will report its earnings Thursday.
Among other companies, CG Power and Industrial will report its quarterly earnings Monday. Kotak Institutional Equities expects the company's Jul-Sept net profit to grow 6% on year to INR 2.57 bln and sales to rise nearly 9% on year to INR 23.76 bln. The brokerage firm said the company's margin is likely to be flat as better pricing in power systems segment may offset the weakness in industrial systems segment.
Nuvama Institutional Equities also expects pressure on CG Power's margin in Jul-Sept. "Given slowdown in short-cycle LT (low tension motors segment, CG Power may find it challenging to up its current margin levels...We believe margins would continue to remain weak for 1-2 more quarters," the brokerage said.
TOP HEADLINES
* Elecon Engg Jul-Sept consol PAT falls 1% YoY to INR 877.2 million
* L&T arm receives 'significant' order from Rashtriya Chemicals
* Praj Ind launches India's 1st demonstration facility for biopolymers in Pune
* Ircon Intl in MoU with Patel Engg for infra projects in India, overseas
* L&T wins 'significant' order to design, build Agra metro phase 1, line 2
* Earnings Outlook: Order inflows, low input costs to aid ABB India Jul-Sept
* BEML gets INR 8.67-bln order for two-high speed trainsets
* Ashoka Buildcon gets INR 20 bln order from Maharashtra to build 2 bridges
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Heavy Electricals | 253.85 | (-)6.00 | 261.40 | 242.80 |
| CG Power and Industrial Solutions | 819.00 | (-)4.60 | 844.30 | 802.30 |
| Larsen & Toubro | 3577.80 | 2.70 | 3622.40 | 3518.00 |
| Siemens | 7803.00 | 0.70 | 8030.50 | 7451.30 |
| Thermax | 5198.60 | 0.80 | 5333.40 | 4972.60 |
| S&P BSE Capital Goods | 71821.01 | 0.30 | 72791.30 | 70206.50 |
| Nifty 50 | 24854.05 | (-)0.40 | 25087.90 | 24450.80 |
| S&P BSE Sensex | 81224.75 | (-)0.20 | 81990.30 | 80026.50 |
End
US$1 = INR 84.07
Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj
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