Shares of capital goods (CG) companies are under hammer with most of the stocks from the sector are trading at their multi-year lows on concerns of slowdown in economy may drag their net profit growth further.
Bharat Heavy Electrical Limited (BHEL), Larsen and Toubro (L&T), Punj Lloyd, Jindal Saw, Crompton Greaves, Suzlon Energy and Bharat Electricals are down 2-8% on BSE.
The BSE capital goods index was down about 4% as compared to 2.5% fall in benchmark S&P BSE Sensex at 1450 hours. The index hits low of 7,380, its lowest level since April 2009, in intra-day trades today.
The aggregate net profit of CG companies has declined by 81% year-on-year (yoy) at Rs 202 crore due to 8% yoy fall in revenues for the quarter ended June 30, 2013.
BHEL was the largest loser among CG pack, tanked nearly 8.2% to Rs 109, its lowest level since October 2005, on BSE.
Analyst at Kotak Securities says the sharp contraction in revenues was mainly attributed to slow moving projects as well as depletion in order backlog.
The market for power generation equipment would continue to remain subdued as fuel supply issues, poor financials of SEBs and weak merchant power market remain major deterrents. Substantial industry overcapacity remains another negative, added analyst.
Among the other individual stocks, Punj Lloyd has tanked 8% at Rs 24, followed by Jindal Saw (down 7% at Rs 44.80), Crompton Greaves (down 5% Rs 85) and L&T (down 4% at Rs 765).
Bharat Heavy Electrical Limited (BHEL), Larsen and Toubro (L&T), Punj Lloyd, Jindal Saw, Crompton Greaves, Suzlon Energy and Bharat Electricals are down 2-8% on BSE.
The BSE capital goods index was down about 4% as compared to 2.5% fall in benchmark S&P BSE Sensex at 1450 hours. The index hits low of 7,380, its lowest level since April 2009, in intra-day trades today.
The aggregate net profit of CG companies has declined by 81% year-on-year (yoy) at Rs 202 crore due to 8% yoy fall in revenues for the quarter ended June 30, 2013.
BHEL was the largest loser among CG pack, tanked nearly 8.2% to Rs 109, its lowest level since October 2005, on BSE.
Analyst at Kotak Securities says the sharp contraction in revenues was mainly attributed to slow moving projects as well as depletion in order backlog.
The market for power generation equipment would continue to remain subdued as fuel supply issues, poor financials of SEBs and weak merchant power market remain major deterrents. Substantial industry overcapacity remains another negative, added analyst.
Among the other individual stocks, Punj Lloyd has tanked 8% at Rs 24, followed by Jindal Saw (down 7% at Rs 44.80), Crompton Greaves (down 5% Rs 85) and L&T (down 4% at Rs 765).