Capital Goods Stocks Outlook for the week – 08 to 12.02.2016
(L&T
seen recovering, BHEL results eyed)
Shares
of capital goods companies are likely to trade mixed, with shares
of
Crompton Greaves and Cummins India seen extending losses while
those
of Larsen & Toubro and Bharat Heavy Electrical moving up.
Bharat
Heavy Electricals will detail its Oct-Dec earnings on Thursday
and
is seen reporting net profit of 991.8 mln rupees, down 53% on year.
The
power equipment maker's net sales are seen at 63.3 bln rupees.
We
expect sales to decline by 2% YoY (year on year); largely due to
slowdown
in industrial capex. Power segment sales are expected to
compensate
pressure in industry segment.
However,
the investors will be eyeing management commentary on 2015-
16
order inflow. BHEL has emerged as the lowest bidder for projects
worth
8,300 MW. Any guidance on the awarding of these orders as well
as improvement in execution pace will be a positive for the company