Capital Goods Stocks Outlook for the week - 23 to 27.03.2015
( www.rupeedesk.in )
The
stocks of capital goods companies are seen mixed next week, with action largely
remaining stock-specific. However, any further negative development on the land
acquisition bill may hurt the sector.
The
amended land acquisition bill, which was introduced through the ordinance route
in
December,
holds the key to the revival of infrastructure projects as well as the Make in
India.
We
see imminent delays plaguing most of the 35 GW power equipment order pipeline.
We
suggest weak preparedness (of the tendering authorities) in terms of
environmental clearance, land acquisition and fuel supply for projects expected
to be awarded over the next two years, which is around 15-16 GW per annum.
Among
the shares seen weakest in the sector is Bharat Heavy Electricals and the stock
is seen
moving
down to the 234-rupee. Shares of electrical equipment maker Crompton Greaves
are also expected to fall.
