Capital Goods
Stocks Outlook for the week – 27 to 31.10.2014
( www.rupeedesk.in )
Stocks of capital goods companies
are largely seen tracking the brad market next week in the
absence of sector specific triggers.
Some stock-specific action is expected in stocks of companies
detailing their Jul-Sep
earnings.Investors will eye the Jul-Sep earnings of power and automation
equipment maker ABB India and
wind turbine maker Suzlon Energy next week.
ABB India has been showing
gradual improvement in its profitability on the back of cost
reduction measures and increased
localisation. We expect this trend to continue during the
quarter. The company will detail
its Jul-Sep results on Tuesday.
Suzlon Energy, which recently
completed its debt restructuring programme, is expected to
continue its last two quarters'
trend of profitability at the operating level. Any negative surprises
in its Jul-Sep earnings are
likely to further dent the company's shares, as they are already trading
at 11.00-13.00 rupee level.
Owing to the optimistic outlook
of the company's management, following the completion of its
debt restructuring plan and
slight improvement in Jan-Mar earnings, the stock had reached its year high of 36.75 rupees on Jun
12.
