Capital Goods Stocks Outlook for the week – 02 to 06.02.2015
( www.rupeedesk.in )
Stocks of capital goods are
likely to be stock-specific next week, as many major companies in
the sector will be announcing
their Oct-Dec results.
After market hours yesterday,
energy and environment equipment maker Thermax announced its
Oct-Dec earnings. The company
reported standalone net profit of 762.08 mln rupees, up 14.35%
on year.
The company's sales at 11.35 bln
rupees, too, were short of Street estimates of 11.72 bln rupees.
Next week, engine and genset
maker Cummins India will detail its Oct-Dec earnings on Monday,
while Avantha Group-promoted
Crompton Greaves will do so on Tuesday.
We expect moderate domestic
demand due to sluggish industrial capex. However, expect
meaningful growth in export
business. Electrical equipment maker Crompton Greaves is seen
reporting consolidated net sales
of 35.60 bln rupees, up 6% on year, and net profit of 865 mln
rupees, up 39% year-on-year.
Management has indicated that all
the plants (Belgium, Hungary, Canada, USA) are close to
breakeven at EBITDA levels, and
expects the performance to improve in H2FY15 as better
margin orders from systems,
automation and power transformers business are likely to come up for execution.
