Capital Goods Stocks Outlook
Share movement seen in line with market
This story was originally published at 19:03 IST on 23 May 2025
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MUMBAI – The rise or fall in capital goods stocks is expected to be in line with the movement in the market next week after most major companies in the sector reported their results for the March quarter. However, amid expectations of a healthy monsoon this year, stocks of companies selling agricultural engineering goods may see some interest from investors, an analyst covering capital goods companies said.
In the medium-to-long term, the outlook for capital goods stocks remains positive despite higher valuations in certain pockets, sectoral analysts said. India has a competitive advantage in several subsegments and export demand remains stable, said Deepak Jasani, who heads retail research at HDFC Securities. Analysts are also hopeful of a pick-up in private and public capital expenditure even though it is difficult to pinpoint a timeline for that, they said.
Next week, several small- and mid-cap companies are scheduled to report their results for the March quarter. KEC International is set to announce its quarterly results Monday, followed by Bharat Dynamics Tuesday. Elgi Equipments, Engineers India, and Praj Industries will report their earnings Thursday.
Earlier this week, Elara Capital revised its rating recommendation for Bharat Electronics to 'accumulate' from 'buy' but increased the target price to INR 400 from INR 370. The target price revision was due to the company's battle-proven product portfolio, strong order visibility bolstered by export opportunities, and potential for further surprise on margin, the brokerage said. The rating was revised as the stock has outperformed the Nifty 50 by 32% in the past three months.
TOP HEADLINES
* BEML Jan-Mar PAT rises 12% on year to INR 2.88 billion
* At May 29 board meeting, Samvardhana Motherson to consider raising funds
* Syrma SGS partners with Dynabook to manufacture laptops in India
* ABB India inks pact with SAIL to digitally optimise Rourkela Steel Plant ops
* IRCON International Jan-Mar PAT falls 24% on year as sales decline 11%
* L&T moves SC for stay on opening fincl bids for Mumbai road tunnel project
* IRCON Intl gets work order of INR 2.54 bln from South Western Railway
* KEC Intl gets INR 11.33-bln T&D orders from Power Grid, private developer
* Kalpataru Projects Jan-Mar PAT rises 61.2% YoY to INR 2.42 billion
* Earnings Review: BHEL's Jan-Mar PAT rises first time in 6 years
Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharat Heavy Electricals | 254.80 | 1.80 | 262.80 | 241.10 |
| CG Power and Industrial Solutions | 696.45 | 0.00 | 705.50 | 687.60 |
| Larsen & Toubro | 3599.90 | (-)0.10 | 3674.60 | 3513.80 |
| Siemens | 3277.30 | 6.80 | 3371.70 | 3203.90 |
| Thermax | 3548.00 | 3.50 | 3652.60 | 3478.80 |
| Bharat Electronics | 383.80 | 5.50 | 393.70 | 376.10 |
| S&P BSE Capital Goods | 69246.03 | 0.50 | 69791.00 | 68593.60 |
| Nifty 50 | 24853.15 | (-)0.70 | 25087.10 | 24497.10 |
| S&P BSE Sensex | 81721.08 | (-)0.70 | 82515.90 | 80499.60 |
End
Reported by Shakshi Jain
Edited by Rajeev Pai
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