Capital
Goods Stocks Outlook for the week – 09 to 13.05.2016
Trade to be stock-specific; results
key
( www.rupeedesk.in )
Trading in stocks of capital goods is
likely to be stock-specific next week with tracking of the Jan-Mar earnings of
companies in the sector. However, macro economic data--industrial production
and
inflation data--to be released during
the week may trigger some sector-wide trend. The industrial
production data for March will be
detailed on Thursday by the Central Statistics Office. The sector's
industrial growth was (-) 9.8% in
February as compared to 8.3% year ago. Stocks of engineering
major Siemens Ltd will be in focus on
Monday as the company reported its Jan-Mar earnings post
market hours yesterday.
It reported a 9.6% on year-on-year
increase in Jan-Mar net profit to 1.77 bln rupees and an increase of 5.3% on
year in net sales to 27.25 bln rupees. The positive surprise did not just end
with the bottom line growth as Siemens also exceeded on the operating margin
front, posting a 155-basis point increase to 11% in Jan-Mar.
Siemens order inflows in Jan-Mar rose 10.5% to 29.39 bln rupees, which bodes well not just for the
company but also the broader sector. With the earnings springing a positive
surprise. Triveni Turbines, a mid-cap capital goods player, will report its
earnings on Tuesday. The company is seen
reporting net profit of 349 mln rupees, up 19% year-on-year, and net sales of
2.42 bln rupees, up 26%.
