Capital Goods
Stocks Outlook for the week – 27 to 30.01.2015
( www.rupeedesk.in )
Stocks of most capital goods
companies are likely to trade with a negative bias next week on
account of profit booking, as
most stocks in the sector have gained in line with the wider
market last week.
However, some stock-specific
trades are likely in stocks of Thermax and Siemens, as both the
companies will be detailing their
Oct-Dec earnings on Jan 30. Thermax is seen positing a net
profit of 807 mln rupees, up 21%
on year, largely on the back of robust revenue growth arising
from the pickup in execution of
Reliance Industries' large order for boilers.
The company's revenues are seen
up 17% on year to 11.72 bln rupees. We expect strong revenue
growth to sustain, led by
execution of few large projects. Margins are expected to improve on
strong execution as well as low
base.
The Indian arm of German heavy
equipment maker Siemens AG is also seen reporting a 50% onyear
rise in net profit to 977 mln
rupees. Net sales of the company are seen up 9% on year to 25.64 bln rupees.
