Capital Goods Stocks Outlook for the week – 18 to 22.05.2015
(Seen
in range; Voltas results eyed)
( www.rupeedesk.in )
Stocks
of most capital goods companies are seen trading in a range with a slight
negative bias next week amid weak broader market and disappointing result
season so far. While short-term investor sentiment remains cautious on most
companies in the sector, sector bellwether L&T and product companies such
as Voltas and Cummins are preferred.
Tata-sons
promoted Voltas will report its Jan-Mar earnings on Thursday. The company's
Jan-Mar consolidated net profit seen at 943 mln rupees, down 6.1% on year. Net
sales are seen at 15.07 bln rupees, up 3.9% on year. Slower pace of project
execution continues to be a challenge, as revenue from project segment declined
16% YoY for 1HFY15 (Apr-Sep), while legacy projects are yet to be commissioned.
