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Shares of capital goods and engineering companies are seen gaining next week, as investors remain positive after Larsen & Toubro Ltd's strong Jul-Sep earnings.
The capital goods bellwether yesterday reported a net profit of 9.78 bln rupees for Jul-Sep, up 7% on year. Net sales increased 10% on year to 145.10 bln rupees. The capital goods companies except Bharat Heavy Electricals Ltd are seen posting lukewarm earnings in Jul-Sep.
BHEL's performance is expected to remain weak for the rest of FY14; however, some companies like Crompton, ABB and Siemens could post PAT growth in 2HFY14 (Jul-Sep) given base effect of FY13.
Thermax's domestic order inflow is expected to be hit in Jul-Sep, given the constrained environment. However, strong order inflows of 21.5 bln rupees in Apr-Jun would help the company meet our order inflow expectation of 55 bln rupees.
The aggregate revenues of our coverage universe are estimated to be flat at 284.77 bln rupees in Jul-Sep. However, excluding the weak performance of Bharat heavy Electricals Ltd, the performance of our coverage universe would be much better with the revenues increasing by around 10%, which would be largely supported by Larsen & Toubro, V-Guard Industries, and Crompton Greaves.
Shares of capital goods and engineering companies are seen gaining next week, as investors remain positive after Larsen & Toubro Ltd's strong Jul-Sep earnings.
The capital goods bellwether yesterday reported a net profit of 9.78 bln rupees for Jul-Sep, up 7% on year. Net sales increased 10% on year to 145.10 bln rupees. The capital goods companies except Bharat Heavy Electricals Ltd are seen posting lukewarm earnings in Jul-Sep.
BHEL's performance is expected to remain weak for the rest of FY14; however, some companies like Crompton, ABB and Siemens could post PAT growth in 2HFY14 (Jul-Sep) given base effect of FY13.
Thermax's domestic order inflow is expected to be hit in Jul-Sep, given the constrained environment. However, strong order inflows of 21.5 bln rupees in Apr-Jun would help the company meet our order inflow expectation of 55 bln rupees.
The aggregate revenues of our coverage universe are estimated to be flat at 284.77 bln rupees in Jul-Sep. However, excluding the weak performance of Bharat heavy Electricals Ltd, the performance of our coverage universe would be much better with the revenues increasing by around 10%, which would be largely supported by Larsen & Toubro, V-Guard Industries, and Crompton Greaves.
