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Informist, Friday, Feb. 20, 2026

 

MUMBAI – Shares of capital Goods companies in the power segment are expected to rise next week on a strong order book, while those of companies dependent on railways and road orders may fall due to a slowdown in orders, analysts said. A slowdown in government capital expenditure and high stock valuations may limit upside for most capital goods stocks, they said.    

 

Three out of the four capital goods companies in the Nifty 100 index reported higher growth in order book at the end of the December quarter as compared with the quarter earlier. Index heavyweight Larsen & Toubro saw its order book rise by around 30%.   

 

Infrastructure companies faced a weak quarter in terms of orders. Overall order inflow for the top 13 listed infrastructure companies, excluding NBCC, rose 4% on year in Oct-Dec, Nuvama Wealth Management said in a report on Thursday. However, if one removes Dilip Buildcon, order inflows were down 24% on year, the report said.

 

The pace of government capital expenditure has started to decline, as analysts expected. Government capex during Oct-Dec declined by over 23% year on year to INR 2.07 trillion, taking the nine-month capex to INR 7.88 trillion — a rise of nearly 15% on year. The 15% rise was sharply below the 40?pex rise in the first half of the financial year.

 

Further weak capital expenditure by private players in major sectors such as steel and cement is also a concern, Elara Securities said in a report on Friday. "However, private capex is taking place in select pockets – new-age sectors of data centres, renewables, and semiconductors," the brokerage said.

 

For the December quarter, the cumulative net profit of 16 capital goods companies in the Nifty 200 index, for which earnings estimates were available, rose nearly 41% on year, after excluding exceptional items and one-time hits due to labour code implementation. This was better than the nearly 31% growth in net profit expectations for these companies. Including exceptional items and the labour code hit, the net profit of the 16 companies slowed down to just over 10%. Revenue growth for the 16 companies was 16% on year during the quarter, slightly better than the nearly 18% expected.  

 

TOP HEADLINES

 

* Earnings Review: ABB India posts weak Oct-Dec; PAT down for 3rd straight qtr
* Texmaco, Rail Vikas sign JV pact for rolling stocks, maintenance, asset mgmt
* L&T partners with Nvidia to build gigawatt-scale AI factory infrastructure
* Power Mech gets two orders worth INR 10 bln from Adani Power arms
* Engineers India board to meet Feb 26 to consider 2nd interim dividend
* Praj Industries to set up isobutanol-diesel blending demo plant in a year
* Analyst Concall: Torrent Power says Nabha Power sales set for next 13 years
* Texmaco Rail gets INR-2.19-bln order from Mumbai Railway Vikas Corp
* L&T arm to sell Nabha Power to Torrent Power for INR 36.6 bln
* Texmaco Rail bags INR 276.7-mln order from South Western Railway
* PTC Industries Oct-Dec consol PAT rises 29% YoY to INR 183.54 million
* Patel Engineering Oct-Dec consol PAT falls over 12% YoY to INR 705.64 mln
* Ashoka Buildcon gets letter of award for $45.28-mln road project in Liberia
* Titagarh Rail Systems Oct-Dec consol PAT falls 23.5% YoY as sales fall 8%
* Action Construction Equipment to form JV with Japan's Kato Works

 

The following are the resistance and support levels for key capital goods 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	257.30	0.60	264.80	246.90
CG Power and Industrial Solutions	712.15	4.70	732.80	681.30
Larsen & Toubro	4380.60	5.00	4468.80	4223.00
Siemens	3206.20	2.90	3408.10	3004.10
Thermax	3151.80	9.20	3331.80	2885.00
Bharat Electronics	441.15	1.30	451.80	428.40
Index	Levels
S&P BSE Capital Goods	69612.86	2.00	71001.60	67706.40
Nifty 50	25571.25	0.40	25822.00	25254.40
S&P BSE Sensex	82814.71	0.20	83643.50	81791.80

 

End

 

Reported by Anshul Choudhary

Edited by Saji George Titus

 

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