Cap Goods stocks enjoy power play on D-street

ABB BSE | NSE 30/05/12 Are Mutual Funds betting on ABB? Other Stocks in this news Alfa Laval (India) | Aban Offshore | Alstom Projects | BEML | BF Utilities | Bharat Heavy Electricals | CESC | Crompton Greaves | Dredging Corporation India | Energy Development Company | Greaves Cotton | Gammon India | Gujarat Industries Power Co. | GVK Power & Infrastructure | HEG | Ingersoll Rand (India) | Jaiprakash Power Ventures | KEC International | Lakshmi Machine Works | Larsen and Toubro | Neyveli Lignite Corporation | NTPC | Praj Industries | Reliance Infrastructure | Suzlon Energy | SKF India | Tata Power Company |

The charged up Indian power sector and capital goods sector are currently riding the bull. Between June 15 and November 22 of this year, 10 power stocks listed on the BSE have gone up by 4-148%. During the same period price of 19 capital goods stocks have gone up by 58-106%.

The rally in capital goods stocks have mostly been news based. News of Siemens bagging power transmission and distribution order worth Rs 4,000 crore in Qatar and L&T gearing up to set up a Rs 2,000-crore shipyard in India have given a boost to these stocks. In addition most of these companies have fat order books, which will positively impact their growth outlook. 

Performance of Capital Goods stocks

Company	As on 15.6.2006		As on 22.11.2206		Gain (%)
	Close Price	Mkt Cap	Close Price	Mkt Cap
Lak Mach	15558.6	1924.59	32136.6	3975.29	106.55
Alstom Proj	209.2	1402.06	428.05	2868.79	104.61
Suzlon	850.6	24455.86	1463.4	42107.9	72.05
Crompton	158.0	4135.92	270.35	7079.11	71.16
ABB	2068.7	8766.94	3492.6	14801.6	68.83
Thermax	228.4	2721.39	378.35	4508.04	65.65
Siemens	840.0	14162.4	1330.65	22434.8	58.41
HEG	109.3	440.59	172.35	694.74	57.69
KEC Int'l	240.4	906.07	358.8	1352.32	49.25
Ingersoll	239.8	757.05	357.1	1127.36	48.92
Aban Off	762.7	2814.36	1090.4	4023.58	42.97
Praj Inds	130.1	1054.71	181.15	1517.13	39.29
Larsen	1020.6	28401.91	1373.2	38463.3	34.55
BHEL	1837.0	44961.19	2462.75	60278.3	34.07
SKF India	241.8	1274.75	308.05	1624.35	27.43
Gammon	355.4	3107.97	445.1	3892.4	25.24
Dredg Corp	486.1	1361.08	601.4	1683.92	23.72
BEML	871.0	3200.05	983.55	3613.56	12.92
Greaves	275.4	1344.81	307.8	1503.3	11.79
Alfa Laval	853.0	1549.05	823.15	1494.84	-3.50

 

 

 

 

 

 

 

 

 

 

 

 

Lakshmi Machine is the biggest gainer with 106.55% jump in stock price between June 15 and November 22, 2006, followed by Alstom Project. ABB has gained 69% and has been the most talked about stock on Wednesday and Thursday. Seimens, which pulled the market to a new high on Wednesday on the back of the order, jumped 58%.

BHEL's order book on April 1 was Rs 37000 crore and at half year, it stands at a whopping Rs 45000 crore. 75% of the company's order book is from the power sector and would continue to be the same in the next five years. The stock, whose price has jumped 34% in the 5-month period under considerataion, has the highest marketcap in the sector.

Suzlon, which jumped 72% in the June15-November 22 period, bagged a Rs 1,190-crore order from US-based John Deere Wind Energy to supply wind turbine equipment. Besides, the company also has orders from Chinese, European and Latin American countries as well as the US.  

Performance of power stocks on next page