- The Index of Capital Goods grew by 16.8% for the year till January 2006 as compared with a growth of 13.1% in the same period last year. Considering the economy is witnessing a period of investment boom, expect a similar growth in the January-March 2006 period.
- Crompton Greaves should report a good performance in Q4FY2006 on the back of a strong order booking in the industrial system and power system divisions. Expect an improvement in the performance of its 100% subsidiary, Pauwels Transformers, during the quarter.
- In the wake of the receding input cost pressure, Thermax should continue with its margin expansion and report an improvement in its stand-alone operating profit margin (OPM). This coupled with a strong order booking should result in a healthy growth in its stand-alone earnings. We expect the loss-making subsidiary, ME Engineering, to show an improvement in its performance and drive the consolidated earnings of the company.
Sector Performance - Capital Goods and Engineering
Capital goods and engineering: Growth continues
