Capital Goods Stocks Outlook
Stock-specific reactions likely on earnings
This story was originally published at 21:20 IST on 2 May 2025
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MUMBAI – Capital goods companies are expected to see stock-specific reaction next week as the March quarter earnings season is in full swing. The construction-major Larsen & Toubro is set to announce its quarterly results Thursday. Among other major companies, Polycab India and CG Power and Industrial Solutions will report its earnings Tuesday, and ABB India will announce its results Friday.
Larsen & Toubro's earnings will help analysts assess the momentum in capital expenditure by the government and private players. Apart from this, its performance on the margins front will be keenly watched, analysts said.
According to average of estimates by nine brokerages, Larsen & Toubro's consolidated net profit in the March quarter is expected to rise 10% on year to INR 48.14 billion. Its consolidated revenue is likely to rise 14% on year to INR 764.67 billion.
"With robust order inflow growth, execution completion of legacy projects, refinancing of Hyderabad metro etc., margins may see ramping up but at a slower pace," Nuvama Insitutional Equties said in its earnings preview report.
Shares of defence-related companies are likely to be volatile due to tensions between India and Pakistan after terrorists some killed tourists in Kashmir last week. Shares of these companies saw gains this week amid concerns of military confrontation between the two countries. However, investors would be quick to book profits in these stocks if tensions ease.
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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 | 224.54 | 1.00 | 234.00 | 219.10 |
| CG Power and Industrial Solutions | 622.15 | (-)1.70 | 634.10 | 609.20 |
| Larsen & Toubro | 3329.80 | 1.80 | 3395.50 | 3288.70 |
| Siemens | 2919.70 | 3.00 | 2976.00 | 2867.60 |
| Thermax | 3241.20 | (-)5.90 | 3333.70 | 3183.70 |
| Bharat Electronics | 311.35 | 4.60 | 320.40 | 306.10 |
| S&P BSE Capital Goods | 62668.31 | 1.90 | 63682.10 | 62028.00 |
| Nifty 50 | 24346.70 | 1.30 | 24742.10 | 24040.80 |
| S&P BSE Sensex | 80501.99 | 1.60 | 81625.50 | 79606.80 |
End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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