Capital Goods Likely Outperformers

All companies have shown tremendous price performance, on absolute levels and relative to the BSE Sensex. In the Capital Goods sector, L&T topped the list, up 178% from last year, followed by Punj Lloyd, Thermax, Voltas and BHEL, all registering growth in excess of 100%. In short-term, correction in the stocks was expected and going forward expect the fundamentals for the sector to remain robust in the coming quarters. The correction is only paving the way for potential upside.

Except for Cummins India, All the stocks covered in this article are OUTPERFORMERS. Here is a list of stocks one can consider BUYING for the next 12 months with their target price.

ABB India – Rs 1,812
BHEL – Rs 3,150
BEML – Rs 1,850
Crompton Greaves – Rs 475
Cummins Inda – Rs 410
L&T – Rs 4,900
Punj Lloyd – Rs 630
Siemens India – Rs 2,300
Suzlon Energy – Rs 2,300
Thermax – Rs 1,050