Strong order inflows to buoy Q4 for India's capital goods cos, says brokerage

Cummins India

12/04/2024 10:57

** Indian capital goods firms to report strong Q4 earnings
on healthy order inflows and execution, says Prabhudas Lilladher
    ** Brokerage notes strength in domestic, key export markets
like Middle East, Africa; says European market outlook, Chinese
competition key monitorables
    ** Expects energy and services businesses to lead Q4 rev
jump for Larsen & Toubro (L&T)  LART.NS ; Siemens'  SIEM.NS  rev
growth to be aided by mobility and smart infra segments
    ** However, it flags Cummins India's exports  CUMM.NS  to be
muted on softness in China, Europe, and lower core profit margin
for Bharat Electronics  BAJE.NS  on higher input costs
 
 Company       RIC         Expected Q4 rev
                           growth (y/y)
 Cummins        CUMM.NS    18.90%
 India                     
 L&T            LART.NS    13.30%
                           (consolidated)
 Siemens        SIEM.NS    15.30%
 Bharat         BAJE.NS    30.50%
 Electronics               
 
    ** LART, Triveni Turbine  TRVT.NS , Praj Industries
 PRAJ.NS , Grindwell Norton  GRNN.NS  and Carborundum Universal
 CRBR.NS  brokerage's top picks among twenty firms in coverage 
    ** GRNN flat, CUMM and BAJE up 1.8% and 2.2% respectively,
while LART, TRVT, SIEM, PRAJ and CRBR down between 0.2%-2%

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))