Capital Goods Stocks Outlook
Stock-specific reaction likely next week
This story was originally published at 23:28 IST on 25 April 2025
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MUMBAI – Capital goods companies are expected to see a stock-specific reaction next week as the March quarter earnings season is in full swing. Among major companies in the sector, RR Kabel is set to report its quarterly earnings on Friday, and some automobile component makers such as Exide Industries, Sona BLW Precision Forgings and Sundram Fasteners will report earnings on Wednesday.
Supreme Industries reported its March quarter earnings on Thursday. While some analysts were bearish on the stock due to lower-than-expected volume, others were bullish owing to better margin and valuation.
YES Securities downgraded the stock to ‘reduce' on weak outlook on demand and cut the target price by 21% to INR 3,343. Its target price implies another 4% fall in the stock compared with Friday's close of INR 3,477.80.
"With lack of focus from Government on key projects viz. JJM (Jal Jeevan Misson), coupled with soft demand from real estate segment due to postponement in approvals & clearance, we reckon FY26 will also be muted for plastic pipes segment," the brokerage said.
Supreme Industries guided for a volume growth of 10-12% for its piping business in 2025-26 (Apr-Mar) and an EBITDA margin of 14.5-15.5%. Analysts expect the company's margin to face pressure due to higher competition and weak demand.
At the same time, Nuvama Institutional Equities is bullish on the stock on the company's capacity addition plans. The company aims to invest INR 11 billion on the same in FY26 to raise its piping system capacity to 1 million tonne, about 15% higher the current capacity of 870,000 tonne. The brokerage has target price of INR 4,056, implying a rise of nearly 17%.
Among companies set to report quarterly earnings next week, RR Kabel is likely to see its consolidated net profit rise nearly 20% on year to INR 943.50 million. Its sales are expected to rise 19% on year to INR 20.95 billion.
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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 | 222.37 | (-)2.20 | 237.90 | 210.10 |
| CG Power and Industrial Solutions | 633.10 | 2.10 | 665.00 | 601.70 |
| Larsen & Toubro | 3272.10 | 0.80 | 3384.90 | 3173.70 |
| Siemens | 2833.50 | 0.80 | 2991.20 | 2688.20 |
| Thermax | 3444.00 | 1.50 | 3713.00 | 3275.60 |
| Bharat Electronics | 297.60 | 0.80 | 313.80 | 285.60 |
| S&P BSE Capital Goods | 61508.96 | 0.70 | 64122.50 | 59399.10 |
| Nifty 50 | 24039.35 | 0.80 | 24601.80 | 23566.60 |
| S&P BSE Sensex | 79212.53 | 0.80 | 80841.20 | 77791.50 |
End
Reported by Anshul Choudhary
Edited by Deepshikha Bhardwaj
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