Capital Goods share price target

We hosted nine capital goods companies for PL Capital Goods Week where company managements highlighted 1) strong enquiry pipeline 2) likely impact on margins and execution due to of geopolitical tension arising due to Russia & Ukraine conflicts, 3) Govt. initiative to push capex spending 4) working capital may get impacted as payment cycle from government may get prolonged due to increasing crude price. Overall commentary seems to be positive on enquiry pipelines for product companies, though some tenders may witness delay in order conversions for EPC companies. Most of the...

In our view, ordering activity has been accelerated in Q3FY22 and is expected to report strong growth in H2FY22. While on tendering front, domestic tender and enquiry pipeline continues to remain strong though some delay is order finalization can be witnessed, especially in state government projects. Traction remains strong from sectors such as data center, railway, metro, pharma, cement, chemical, metal, mining and F&B. On exports front ordering Acc=Accumulate/ UR=Under Review and enquiry pipeline stands strong from regions like Africa, Middle East, US,...

Revenue, EBITDA to grow 17.9%, 18.9%, respectively Overall, the coverage universe revenue is expected to grow 17.9% YoY owing to execution pick-up at engineering and T&D companies like L&T, KEC, KPTL, BEL and Cochin Shipyard. The international business and exports likely to aid performance of companies like L&T, KEC, AIA, Elgi, ABB etc. We expect EBITDA to grow 18.9% YoY owing to operating leverage in product companies and execution pick-up by EPC companies factoring in pandemic impact and higher commodity prices. Consequently,...

Overall, the coverage universe revenue is expected to grow 18.7% YoY owing to decent execution amid low base at engineering and T&D; companies like L&T;, KEC, KPTL, BEL and Cochin Shipyard. The international business and exports likely to aid performance of companies like L&T;, KEC, AIA, Elgi, etc. We expect EBITDA to grow 21.8% YoY owing to operating leverage in product companies and execution pick-up by EPC companies amid low base factoring in pandemic impact and higher commodity prices. Consequently, overall PAT is expected to grow 24.8% YoY accounting for...

drive, 3) rising capacity utilization and 4) increasing capex spends by government and private players. For our coverage universe we expect revenue growth of 15.6% YoY, though on last year's lower base. Project companies may report a revenue growth of 11% YoY, led by pickup in order execution and timely payment from government agencies. Product companies are expected to report revenue growth of 18.2%, led by improving...

Revenue, EBITDA to grow 40.6%, 85%, respectively Overall, the coverage universe revenue is expected to grow 40.6% YoY owing to reasonable execution amid low base at engineering and T&D; companies like L&T;, KEC, KPTL, BEL and Cochin Shipyard. The international business is likely to aid performance of companies like L&T;, KEC, AIA, Elgi, etc. We expect EBITDA to grow 85% YoY owing to operating leverage in product companies and reasonable execution by EPC companies amid low base factoring in pandemic impact and higher commodity prices....

the back of partial lockdown implemented due to second wave and lower labour availability (down by 20-25% pre-covid levels). Although due to low base in 1QFY21 revenues are expected to grow 59% YoY, with project...

the back of partial lockdown implemented due to second wave and lower labour availability (down by 20-25% pre-covid levels). Although due to low base in 1QFY21 revenues are expected to grow 59% YoY, with project...

Revenue, EBITDA expected to grow 9.6%, 14.5%, respectively Overall, the coverage universe revenue is expected to grow 9.6% YoY owing to further rebound in execution sequentially at engineering and T&D; companies like L&T;, KEC, KPTL, BEL and Cochin Shipyard. The international business is likely to aid performance of companies like L&T;, KEC, AIA, Elgi, etc. We expect EBITDA to grow 14.5% YoY mainly due to positive operating leverage in product companies and better execution by EPC companies as economy gradually normalises. Consequently, overall PAT is...

SAARC witnessed healthy pipeline of enquiries, Order book of many EPC players remain healthy thereby providing revenue visibility for the next 2-3 years. Sectors like Infrastructure, Power T&D;, Water, Railways & Metro, Data Centre, Commercial realty, FGD, GEC etc. are witnessing good traction in order inflows. Key monitorables would be conversion of orders, impact of second VAMP (PAT-11% CAGR, Upside-39%)...