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BHEL: Are the negatives fully priced in?

Jul 16, 2013

Equitymaster discusses whether all the negatives are fully priced into the current stock price of BHEL

Do recent order inflows in Capital Goods give hope?

Jul 10, 2013

Equitymaster discusses order inflow scenario in engineering sector

Power stocks: More pains than gains!

Mar 23, 2010

Equitymaster discusses the ills that have hampered the growth of the Indian power sector, and why investors must not expect much from the future.

Engineering: A year full of challenges

Jun 11, 2009

India's engineering and capital goods companies have dealt with various obstacles over the past year four quarters of FY09. In the early part of the year, concerns regarding rising commodity prices hit companies' directly and indirectly. Directly, as their margins were impacted (higher input costs). Indirectly, as their clients lowered or delayed their investments on account of rising input costs.

Capital goods: December quarter review

Feb 12, 2009

The third quarter of FY09 did not bring about any stark difference in the performance of Indian engineering companies when compared to their performance in the previous quarter (2QFY09). In 3QFY09, while revenue growth remained good, profits were under pressure for most of the companies.

Poll: Should L&T take over Satyam?

Jan 29, 2009

India's largest engineering company by sales, L&T, is making its intentions clear with respect to its investment in the fraud-hit Satyam Computers.

What is a 'strong balance sheet'?

Jan 12, 2009

As a stock investor, you may have frequently heard the term 'strong balance sheet'. Investing in companies having a strong balance sheet may be a wise decision, but nonetheless, it is a vague proposition.

Capital goods: September quarter review

Nov 7, 2008

The BSE Capital Goods index has been at the receiving end the year till date. The index is down by nearly 64% from its 52-week high as compared to the BSE Sensex, which is down by 54%. In this article, let us have a look at how few of the sector companies have performed during the quarter ended September 2008 on an aggregate basis

Power Equipment: Sunny days ahead

Sep 19, 2008

It is a well-known fact that there is a high amount of power shortage in India. To counter the same, the government’s ambitious target of supplying power to all by 2012 was initiated. As such, the Planning Commission of India had estimated that nearly 80,000 megawatts (MW) of capacity addition should be targeted by the end of the eleventh plan (2007-2012) in order to narrow down the demand-supply gap.

Capital goods: June quarter review

Aug 12, 2008

Rising commodity prices and continuous news flows of a worldwide economic slowdown had brought a sense of caution and pessimism amongst investors in the past few months. As such, the capital goods sector, being highly dependent on the investment cycle, was at the receiving end.

Capital goods: Do rising material costs hurt?

Jul 9, 2008

Commodity prices have been on a steady increase over the past few years, fueled by strong demand from China and other developing nations (including India). Not only steel, but also other materials such as zinc, copper, aluminium and nickel have seen their prices rise incessantly. In India''s case, there has been a strong demand for these commodities not only in the infrastructure space but also in the manufacturing sector as companies have gone on expansion spree.

Power equipments: Some hope at last?

Jun 5, 2008

As was reported recently, engineering and construction major, L&T has outbid power equipment heavyweight BHEL for Andhra Pradesh Generation Company's (APGenco) Krishnapatnam power project. The company has put in a bid of around Rs 15 bn for supplying turbine generator set to the 1,600 MW plant (2 units of 800 MW each) whereas BHEL's bid was around Rs 20 bn. The total cost of the project is Rs 84 bn (Rs 53 m per MW). The tender is for supply of turbine and generator set for the supercritical ther

Capital goods and PEG!

Jun 27, 2006

The taste of apprehension in light of the US Federal Reserve's impending meeting on June 29 was experienced yesterday, as Indian equity markets declined by over 3% with stocks from the capital goods sector witnessing significantly sharper declines. Engineering and construction stocks have been rallying, as they were proclaimed to be the darling of the street based on the strong growth story, which was magnified by their burgeoning order books. 'Attractive PEG ratio' was also used as a reasoning

Infrastructure: 'Hard' facts!

Feb 27, 2006

India is on the verge of witnessing a sustained investment phase in infrastructure buildup. With a slew of announcements in the power sector, road, port and airport development and hydrocarbons, we are seemingly on a path of sustained higher economic growth on the back of improvement in infrastructure in the country. The government, in its mid-term appraisal of the tenth five-year plan (2002-07), has revised upwards its infrastructure investment target from Rs 10,890 bn to around 11,100 bn.

Engineering: King in good times!

Dec 30, 2005

Investors in engineering stocks could not have wished for a better year than 2005, which saw stocks from across the sector breach into stratospheric territories. Against Sensex gains of 44% the BSE capital goods index rose by a whopping 92% during the year. While companies recorded strong order book positions, margins also improved, though marginally, on the back of cuttings on staff costs and decline in global commodity prices. The year marked intense competition for orders and talent, the latt

BHEL: 'Power' packed performance!

Apr 7, 2005

In a recently held press conference, PSU engineering major, BHEL's management had released provisional numbers for the company's performance in FY05. As per the reported numbers, while sales have grown by around 21% YoY, net profits are up a strong 52%.

L&T, Dubal venture: There it goes!

Apr 5, 2005

As per a latest announcement, engineering major, L&T, has entered into a joint venture (JV) with Dubai Aluminium Company Limited (Dubal) for setting up integrated bauxite mining cum alumina refinery project in Orissa. The project involves setting up a 1.4 million tonnes per annum (MTPA) alumina refinery, bauxite mine and related infrastructure (including a captive power plant, port facility, township and other utilities). The total project cost is estimated at around Rs 50 bn and L&T will hold a

ABB: Got the power?

Mar 3, 2005

In the past few months, ABB has been one engineering company that has generated tremendous enthusiasm on the Indian stocks markets. Apart from the superb financial performance of the company in FY04 (December ending), the fact that the parent has reinforced its thrust in considering the Indian arm as one of the major global outsourcing hubs seem to have led to this optimism for the stock. In this article, we will take a peep into the company’s performance over the past few years and see where it

“I will rate the budget as 3 on a scale of 1 to 5…”

Feb 28, 2005

In an interview with Mr. Deosthalee spoke at length about the impact of the budget on the economy, the infrastructure sector and on L&T.

Thermax: Buoyant environment but...

Dec 3, 2004

Pune based engineering major, Thermax India, has had a good run on the stock markets over the past couple of months (up 34% since August 2004). On the back of a good performance of both its business segments - energy and environment, the topline of the company recorded a significant 56% growth during the first half of FY05. However, pressure on the operating margins, as well as a decline in other income has seen the company's profits declining by over 22% during 1HFY05.

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