Capital Goods Stocks Outlook for the Week – 20 to 24.06.2016
Trading seen
stock-specific next week
( www.rupeedesk.in )
Trading in stocks of
capital goods is likely to remain stock-specific next week due to lack of sectorwide triggers. However,
towards the end of next week, the Brexit referendum may have impact on the broader market, which
would have a spillover effect across various sectors. Stocks of Larsen & Toubro are likely to stay
firm and inch upwards during the next couple of weeks as any slight weakness in the stock is
seen as an opportunity to invest. Crompton Greaves too is seen gaining in the next few weeks. The
management of the company at a recent meeting with analysts gave a strong growth guidance in
the industrial vertical and a possible sale of ZIV business. ZIV's topline in 2015-16 was 110 mln euros
(around 8.30 bln rupees) but reported an operating loss. In our view, the possible sale of ZIV
is likely to be a key positive for the CRG (Crompton Greaves) stock. Investors are, however, bearish on
shares of state-owned Bharat Heavy Electricals and the stock is expected to extend losses.
