Capital Goods Stocks Outlook for the week – 25 to 29.05.2015
Seen
volatile amid Jan-Mar earnings
( www.rupeedesk.in )
Stocks
of capital goods companies are seen volatile next week as a number of them will
be detailing their Jan-Mar earnings. Thermax, Crompton Greaves, Cummins India,
Suzlon Energy, and Blue Star are among the big companies in the sector which
will announce their earnings next week, with sector bellwether Larsen &
Toubro detailing its Jan-Mar numbers on May 30.
Crompton
Greaves is seen reporting a consolidated net profit of 794 mln rupees for
Jan-Mar, up 24% on year, and net sales of 38.64 bln rupees. We expect the
company's overseas business to show distinct signs of recovery, but currency
movement is seen as a key factor. Engines and generator maker Cummins India is
likely to report double-digit sales and profit growth as to strong exports.
Cummins
India is seen posting a net profit of 1.57 bln rupees, up 11% on year and net
sales of 11.09 bln rupees, up 16% on year. We expect strong exports (low horse
power and medium horse power engines) to more than offset the weakness in
domestic business. Investors will be eyeing Jan-Mar earnings of Suzlon Energy,
as this will be the first quarterly results following the investment of Sun
Pharmaceutical Industries promoter Dilip Shanghvi in the company. Clarity on
debt management and the domestic sales outlook will be keenly awaited from the
Suzlon management.
