Capital Goods Stocks Outlook for the week – 21 to 24.08.2017
Capital Goods Stocks Outlook for the week – 21 to 24.08.2017
( www.rupeedesk.in )
Stocks of capital goods companies are likely to trade in a range next week due to lack of significant triggers. Stock-specific action is expected in the near term. L&T (Larsen and Toubro) and CG Power may witness upward stock movement, while BHEL (Bharat Heavy Electricals) is seen weak. Sector bellwether Larsen and Toubro could gain next week on the back of an agreement with IMC International Metalworking Companies B.V. for divestment of its entire stake in wholly-owned subsidiary--L&T Cutting Tools--for 1.74 bln rupees. The sale is part of the company's strategy to focus on core business. Stocks of Bharat Heavy Electricals are seen under pressure in the short term, as sentiment for the stock remains dull. There is little to look forward to in case of BHEL order inflows are also expected to be muted this quarter (Jul-Sep). CG Power & Industrial Solutions could rise next as the board of the company has recently approved sale of assets and shares, except the switchgear operations of Hungary-based step-down subsidiary--CG Electric Systems Hungary Zrt--for an enterprise value of 38 mln Euros.
Source : Cogencis Information Services Ltd.
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Capital Goods Stocks Outlook for the week – 21 to 24.08.2017
( www.rupeedesk.in )
Stocks of capital goods companies are likely to trade in a range next week due to lack of significant triggers. Stock-specific action is expected in the near term. L&T (Larsen and Toubro) and CG Power may witness upward stock movement, while BHEL (Bharat Heavy Electricals) is seen weak. Sector bellwether Larsen and Toubro could gain next week on the back of an agreement with IMC International Metalworking Companies B.V. for divestment of its entire stake in wholly-owned subsidiary--L&T Cutting Tools--for 1.74 bln rupees. The sale is part of the company's strategy to focus on core business. Stocks of Bharat Heavy Electricals are seen under pressure in the short term, as sentiment for the stock remains dull. There is little to look forward to in case of BHEL order inflows are also expected to be muted this quarter (Jul-Sep). CG Power & Industrial Solutions could rise next as the board of the company has recently approved sale of assets and shares, except the switchgear operations of Hungary-based step-down subsidiary--CG Electric Systems Hungary Zrt--for an enterprise value of 38 mln Euros.
Source : Cogencis Information Services Ltd.
