Capital goods hog limelight

STOCK REPORT

Power generation and engineering stocks are back in the limelight. The BSE capital goods index on Thursday closed new life-time high of 10,135.92.

The capital goods index hit 10,210.56 during intra-day trades and has gained 53 points against its previous day's close of 10,082.93.

The index has outperformed the Sensex from its recent low, reported on April 2, 2007. The capital goods index had appreciated 18 per cent compared with 15 per cent rise in the Sensex during the past one and a half months.

Atlas Copco, Honeywell Automation, HBL Power Systems, Ingersoll Rand, Unity Infraprojects and Mather Pumps appreciated over 4 per cent each, while Bharat Earth Movers (BEML), Gammon India, Alstom Projects, McNally Bharat and Valecha Engineering gained 2 per cent to 4 per cent each on Thursday.

Most large- and medium-sized companies from the capital goods sector received bulk orders from local and foreign firms. Thirty-two firms received orders worth of Rs 5,000 crore in the past one and a half months.

For the quarter ended March, 2007, the capital goods sector posted aggregate net sales growth of 38 per cent and net profit growth of 20 per cent.

Larsen & Toubro secured Rs 215 crore order for 33 kv underground cabling works in the UAE. The company also received Rs 200 crore orders from Nakheel, UAE, to build a residential project in Dubai.

Hindustan Construction Company (HCC) with joint venture of Coastal Projects Private received a contract worth of Rs 735.21 crore for construction of new tunnel in Andhra Pradesh.

IVRCL Infrastructures & Projects has received Rs 383.05 crore order from the Andhra Pradesh government and from Goa State Infrastructure Development Corporation. While, Suzlon Energy has an order book position of Rs 9,486.25 crore, including Rs 1,408.26 crore of domestic orders and Rs 8,077.99 crore of export orders.

GMM Pfaudler stock gained 7.15 per cent to close at Rs 140.85 (Rs 131.45), D S Kulkarni up 6.77 per cent to Rs 260.25 (Rs 243.75), Ingersoll Rand 6 per cent to Rs 308.95 (Rs 291.25) and Unity Infraprojects 5.10 per cent to Rs 413.30 (Rs 393.25).