L&T, Siemens, ABB, Thermax share prices rise up to 70% in a year. Should you Buy, Sell or Hold the capital goods majors?
Siemens , ABB India , Thermax share prices have seen strong run up on the bouses having gained up to 70% in a year. Bharat Heavy Electricals Share price has been a outlier having given multi bagger returns of 179% in a year to investors. The Capital good companies have been gaining regularly with economic activity catching pace .
The order flows have remained strong improving revenues and earnings outlook for capital good majors. Not surprising that Foreign portfolio investors have been regular buyers in the capital goods sector stocks for past many months, even though net inflows by Foreign portfolio investors have remained volatile in the Indian markets. Also Read- Indian stock market to see $1.70 billion inflows on FTSE rejig; HDFC Bank top beneficiary The S&P BSE capital Goods index is also up 65% in a year.
The capital goods companies had reported good earnings growth for the quarter ending December'2023. The Capital Goods companies under coverage of Yes securities reported another bumper quarter after Q2, with revenue and net profit growing 16% and 33% year-on-year , respectively and Ebitda margin expanding 230bps YoY. Order Inflow were up 33% YoY and orderbook was up 28% YoY growing faster than revenues.
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