Capital Goods Stocks Outlook for the week – 20 to 24.04.2015
( www.rupeedesk.in )
Stocks
of most capital goods companies are seen trading in a range with marginal
positive bias next week as long-term investors may resort to value buying
following the correction in stock prices this week. -The next week will also
mark the start of Jan-Mar earnings season for capital goods companies, with
sector major Siemens reporting its quarterly results on Apr 24. -The Indian arm
of German power equipment and infrastructure equipment maker is seen
reporting
standalone Jan-Mar net profit of 1.01 bln rupees, up 14.0% on year and net
sales of 27.28 bln rupees, up 2.6% on year. Cost optimization measures taken by
the company should help improve margin YoY.
Healthcare
(corporate expanding in Tier II&III cities) and Smart grid in energy
segments are few segments where the company is seeing traction in terms of
fresh business opportunities. We see the company reporting an improvement in
operating margin on account of the cost rationalisation measures taken by the
company.
Apart
from Siemens, power transmission and distribution infrastructure developer KEC
International is also likely to continue gaining as orders in power
transmission are seen picking up in the short to medium term and KEC valuations
make it an attractive buy in the segment.
