Capital Goods Sector OUTPERFORMING the Markets

Traderji

Super Moderator
#1
Capital Goods Sector OUTPERFORMING the Markets

With the capital goods sector outperforming the rest of the markets, here are some good "capital good" sector stocks to BUY/ADD on a pullback correction.

Security Name

ABB
Alfa Laval
Alstom Projects
Atlas Copco
Bharat Earth Mov
Bharat Elec
BHEL
Crompton Greaves
Dredging Cor
Gammon (I)
HMT Ltd
Ingersoll Rand
Lakshmi Machine
Larsen & Toubro
Siemens Ltd
Thermax Ltd

Members, please post your views, recommendations, comments, etc on this list of stocks!
 

Traderji

Super Moderator
#2
Here is the list of stocks that make up the capital goods sector index and their % returns over the last three months.

Can you pick the next BIG Mover??

Post your comments here!

Security Name with % Return

ABB 40.68
Alfa Laval 9.28
Alstom Projects 18.35
Atlas Copco 0.54
Bharat Earth Mov 30.35
Bharat Elec 19.85
BHEL 37.56
Crompton Greaves 30.70
Dredging Cor 11.63
Gammon (I) 58.03
HMT Ltd 44.12
Ingersoll Rand 3.27
Lakshmi Machine 1.13
Larsen & Toubro 24.29
Siemens Ltd 31.30
Thermax Ltd 24.00
 
#6
Dear Traderji,

I humbly request you that why did you give not small scripts which are likely to go in this sector eventhough their fundamentally are very strong? We all see that this sector's script is so big , our some of the member including myself is not ready to buy it being on a good P.E. So pl give some small but strong script for the benefit of our small members.

Hope that you do not disappoint us being a small investor like a SAINIK AND NOT A OFFICER. Ours have a vision to increase our hard earned money step by step and not in a hours or one day match.

Thanks and regards,

gksjam
 
#7
Traderji said:
Here is the list of stocks that make up the capital goods sector index and their % returns over the last three months.

Can you pick the next BIG Mover??

Post your comments here!

Security Name with % Return

ABB 40.68
Alfa Laval 9.28
Alstom Projects 18.35
Atlas Copco 0.54
Bharat Earth Mov 30.35
Bharat Elec 19.85
BHEL 37.56
Crompton Greaves 30.70
Dredging Cor 11.63
Gammon (I) 58.03
HMT Ltd 44.12
Ingersoll Rand 3.27
Lakshmi Machine 1.13
Larsen & Toubro 24.29
Siemens Ltd 31.30
Thermax Ltd 24.00
Traderji, wonderful info at one place. Thanks. Traderji as per as my tracking, news and info following stocks had done significantly in last 3 to 6 months. They are:
L&T
BHEL
Siemens Ltd
Dredging Cor
ABB

All above five companies has major roles to play in the infrastructure development in coming years. Apart from this BHEL has bagged many projects from NTPC and globally so BHEL is there to outperfom all expectations. L&T though high priced but going to give cool profits.

One more company I would like to mention that is not included here is Container Corporation of India. Infrastructure related work will definitely give impetus to this company as this one of the largest carrier in India.

Traderji your expert feedback is awaited. Requesting other members also to throw some lights in this thread.

Cheers,
nkpanjiyar
 

Traderji

Super Moderator
#8
nkpanjiyar said:
Traderji, wonderful info at one place. Thanks.
One more company I would like to mention that is not included here is Container Corporation of India. Infrastructure related work will definitely give impetus to this company as this one of the largest carrier in India.

Traderji your expert feedback is awaited. Requesting other members also to throw some lights in this thread.

Cheers,
nkpanjiyar
Yes CCI has done exceedingly well too. I have not included it in this list as the BSE Capital Goods Sector Index does not have it.
 
#10
Good call on the Capital Goods Sector, Traderji!

The Capital goods index closed at a life-time high on the hopes of positive announcements for the sector in the Budget for 2005-06.

The capital goods index was the largest gainer on Friday, surging 26 points compared with a 4.49 point drop in the Sensex. The index hit an all-time high of 3355.33 during intra day trade, before closing at 3349.97.

Larsen & Toubro, Crompton Greaves, SKF India, Nelco, Astra Mirco, Graphite India, Gammon India and Alstom Projects gained in the range of 2 per cent to 8 per cent.

Nelco was the largest gainer, up by 8.12 per cent to Rs 47.25 as against the previous days close of Rs 43.70.

Crompton Greaves gained by 4.31 per cent to Rs 373.05 as against the previous days close of Rs 357.65. Astra Micro rose by 4.63 per cent to Rs 890 (Rs 850.60), Gammon India by 3.2 per cent to Rs 883.20 (Rs 856.25), Graphite India by 2.86 per cent to Rs 170.85 (Rs 166.10) and Alstom Projects by 2.6 per cent to Rs 170.05 (Rs 165.80).

Most of these stocks are currently trading at their all-time highs, primarily due to growth prospects and orders on hand.

Larsen & Toubro, Indias leading engineering and construction company, had on Wednesday announced that it had won an order for the supply of a tubular reactor system valued at Rs 130 crore from Kuwait Olefins Company KSC Kuwait, a joint venture between Dow Chemical Company ,US and PIC, Kuwait.

The company also bagged a $14.10 million Qatar power project contract from Siemens, Germany last month. The stock closed at all time high of Rs 1,081.85, up by 2.22 per cent on the BSE.

Sector shares which hit their lifetime highs in the last two days on the BSE include Gammon India (Rs 900), Madhucon Projects (Rs 607), Alstom Projects (Rs 174.45), Crompton Greaves (Rs 401), Larsen & Toubro (Rs 1,102.65), Graphite India (Rs 182), Igarshi Motors (Rs 166), Jindal Drilling (Rs 159.70) and Selan Exploration (Rs 41.85).

In the last one month the capial goods index has appreciated 21 per cent compared with an 8 per cent rise in the Sensex.

The share price of Mahindra Gesco Developers, High Energy Batteries, Subhash Projects, Jindal Drilling, Avery India, Texmaco, Kalpataru Power Transmissions and Patel Engineering have appreciated by more than 50 per cent in the last one month.

In fact, shares from capital goods sector appreciated by more than 100 per cent in the last one year as a lot of resources are to be committed towards generation and distribution of power and building general infrastructure in the coming few years.

During the quarter ended December 2004, the capital goods sector posted a 53 per cent growth in bottomline. The aggregate net profit of 182 capital goods companies increased to Rs 2,935 crore from Rs 1,920 crore in previous year quarter.

The government is considering a proposal to reduce the customs duty on capital goods imported for setting up captive power plants. It has been proposed that the duty be slashed from the current 20 per cent to 5 per cent to bring it on a par with other power plants.
 

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