Capital Goods Stocks Outlook
Stock-specific action seen on Apr-Jun results
This story was originally published at 19:33 IST on 18 July 2025
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NEW DELHI – Capital goods companies are likely to see stock-specific action next week as the earnings season is in full swing. While valuations are on higher side, analysts do not see major risks of profit booking as these companies are expected to benefit from capital expenditure by the government in the current financial year started April.
The capital expenditure by the government has improved in the first two months of 2025-26 (Apr-Mar). As per the latest data by the Controller General of Accounts, the cumulative capex by the government in April and May was INR 2.21 trillion, over 54% higher compared to the capex during the same period last year. "This strong momentum in infrastructure-led public capex is expected to accelerate the pace of tendering activity across the country, driving higher order inflows for project execution companies," Prabhudas Lilladher said in its strategy report Wednesday.
Capital goods companies are also among the few companies that are expected to see an improvement in margins. A poll by Informist showed the cumulative net profit of 14 capital goods companies in the Nifty 200 index is expected to rise over 23% on year for the June quarter, while revenue for the quarter is seen 13% higher.
Among major companies in the sector, wire and cable maker Polycab reported its quarterly earnings this week. On Thursday, the company reported a nearly 50% on-year rise in its consolidated net profit during the June quarter to INR 5.92 billion. The company beat expectations on all major parameters, which pushed brokerages to raise target price on the stock. Prabhudas Lilladher and Sharekhan had a 'buy' rating on the stock and increased their target price by 8-10% to INR 8,091 and INR 8,000, respectively.
Among major earnings next week, Supreme Industries and CG Power and Industrial Solutions are scheduled to report their Apr-Jun results Thursday. Schaeffler India is set to report its quarterly results Friday.
TOP HEADLINES
* Kalpataru Projects, international arms get orders worth INR 22.93 bln
* SC rejects Hindustan Motors plea against Bengal taking back 395 acres of land
* Syrma SGS, arm ink JV pact with Korean co to make printed circuit boards
* Titagarh Rail gets 40-acre land in West Bengal on lease for INR 1.27 bln
* Analyst Concall: Polycab sees robust growth for wires, cables ops in FY26
* Earnings Review: Polycab Q1 PAT growth fastest in 7 qtrs, beats Street view
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 | 250.50 | (-)3.20 | 256.60 | 246.90 |
| CG Power and Industrial Solutions | 667.60 | (-)0.00 | 705.80 | 647.00 |
| Larsen & Toubro | 3464.80 | (-)2.10 | 3520.30 | 3422.30 |
| Siemens | 3128.40 | 0.30 | 3172.80 | 3082.80 |
| Thermax | 3888.40 | 12.20 | 4002.80 | 3802.80 |
| Bharat Electronics | 394.75 | (-)3.60 | 411.40 | 385.80 |
| S&P BSE Capital Goods | 70200.61 | (-)1.10 | 72135.70 | 69129.70 |
| Nifty 50 | 24968.40 | (-)0.70 | 25236.50 | 24784.60 |
| S&P BSE Sensex | 81757.73 | (-)0.90 | 82626.80 | 81173.60 |
End
Reported by Anshul Choudhary
Edited by Tanima Banerjee
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