Capital Goods

Apr-Jun'21 Earnings Preview

July 6, 2021
Key investment rationale on
Top Picks:
L&T
 Proxy play to Govt’s capex
 Target ROE of +18% by FY22E
 Order Book of Rs3.5trn (2.6 years)
KPP
 Strong execution capabilities
 Steady margin profile
 Healthy order book position
APR
 Focus on value added product
Second Wave of Covid and increase in RM price
to impact 1Q
We expect 1QFY22E to be impacted for product as well project companies on
the back of partial lockdown implemented due to second wave and lower
labour availability (down by 20-25% pre-covid levels). Although due to low
base in 1QFY21 revenues are expected to grow 59% YoY, with project
companies reporting revenue growth of 33% while product companies
revenues will grow by 74% YoY. We expect gross margins to remain under
pressure (reduction of 366bps YoY) owing to steep rise in commodity price
primarily for product companies. Further, cost rationalization are expected to
partially offset the rise in RM price thereby impacting overall EBIDTA margins
for our coverage universe. With ramp up in vaccination drive, sharp decline
in Covid cases and steadily kick starting economic activity, we expect
execution and utilization to recoup 2QFY22E onwards.
In our view, despite pandemic, management commentary towards domestic tender
pipeline and enquiry levels has been strong with some delay in order finalization
witnessed. Further, good ordering traction is seen in sectors such as Railway,
Metro, Power T&D, Oil & Gas, Pharma, Cement, Chemical and Mining. On
International front, our channel check suggest enquiry levels have picked up from
various regions of Middle East, Africa, US, Europe, SAARC, etc. We believe strong
ordering pipeline and improving conversions will make order inflows for our
coverage universe strong (up 42% YoY) in FY22. Key monitorables would be
gross margins, labor availability, ordering activity and working capital cycle.

 Strong Product positioning
 Global leadership position
We continue to prefer companies with strong balance sheet, low debt levels, good
corporate governance, well managed working capital cycle and long-term scalability
that would sail through these turbulent times and be beneficiary in the long-run. Our
top picks in the sector are L&T, KPP and APR.

1QFY22E YoY growth (%)

Sales EBITDA PAT
ABB 55% 236% 190%
Apar Industries* 23% 85% NA
Bharat Electronics 48% 21% 54%
BHEL 93% -46% -25%
Cummins 125% 2902% 88%
Engineers India 30% 27% 2%
KEC International 14% -32% -65%
Kalpataru Power 23% 1% 19%
Larsen & Toubro 47% 94% 399%
Siemens* 109% NA NA
Thermax* 70% NA NA
Viral Shah Voltamp Transformers 164% 403% -13%
viralshah@plindia.com | 91-22-66322250
GE T&D India* 22% 6141% NA
Nilesh Soni Triveni Turbine 5% -22% -23%
nileshsoni@plindia.com |
Source: Company, PL *NA on account of loss reported in 1QFY21

July 6, 2021 1
 Capital Goods

Flat OI in 4Q led by decline in L&T OI Utilization level inching towards pre-covid level

Quarterly Order Inflows (Rs bn) 80.0 Capacity Utilisation

949
75.0
68.6 69.9
66.6

772

772
767
1,000 75.2
753

70.0 73.8 73.6

631 63.3
800 65.0
554

437
60.0

365
600
55.0
400
50.0
200 47.3
45.0
- 40.0
4QFY19

1QFY20

2QFY20

3QFY20

4QFY20

1QFY21

2QFY21

3QFY21

4QFY21

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Q2FY21

Q3FY21
Source: Company, PL Source: RBI, Company, PL

New order grew owing to lower base Low base and economic recovery led to higher IIP
Rs trillion Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
IIP growth (%) Capital Goods (%)
New projects 0.8 1.9 1.2 1.8 1.6
60
YoY gr. -20% -20% -82% -52% 89%
40
Completed projects 0.3 0.8 0.9 1.1 0.5 20 22.4
YoY gr. -69% -11% -49% -37% 100% 0 4.5
Stalled projects 0.1 0.1 0.3 0.1 0.2 -20 -18.3
-40 -34.7
YoY gr. -15% -85% -49% -81% 55%
-60
Revived projects 0.7 0.3 0.2 0.2 0.1
-80
YoY gr. 134% -42% -82% -52% -91%
-100
Implementation stalled projects 0.1 0.1 0.2 0.3 0.3
May-20
Jan-20

Jun-20

Jan-21
Mar-20

Mar-21
Feb-20

Feb-21
Oct-19

Apr-20

Oct-20
Jul-20
Nov-19
Dec-19

Nov-20
Dec-20
Aug-20
Sep-20
YoY gr. -91% -90% 15% -97% 178%
Source: CMIE, Company, PL
Source: MOSPI, Company, PL

Qtr GDP growth inching towards Pre Covid level Business sentiments showing upswing

Quaterly GDP Growth Rate Estimate Business Expectation Index

10.0 5.4 125 119.6

4.6 3.3 3.0
5.0 1.6 120 113.5 112.8 114.1
0.5 111.4
115 108.8
0.0 110 105
102.2
-5.0 105 99.5
-10.0 100
-7.4 95
-15.0
90
-20.0 85
-25.0 80
Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Q2FY21

Q3FY21

Q4FY21

Q1FY20

Q2FY20

Q3FY20

Q4FY20

Q1FY21

Q2FY21

Q3FY21

Q4FY21

Q1FY22

-24.4

Source: MOSPI, Company, PL Source: RBI, Company, PL

July 6, 2021 2
 Capital Goods

Q1FY22 Result Preview

YoY gr. QoQ gr.
Company Name Q1FY22E Q1FY21 Q4FY21 Remark
(%) (%)
Sales 15,298 9,858 55.2 16,292 (6.1)
EBITDA 788 234 236.1 1,323 (40.4) We expect 55% revenues growth as utilization and
lot of side constraints has been addressed and low
ABB Margin (%) 5.2 2.4 8.1
base last year. We expect second wave of Covid
PBT 648 214 202.6 1,291 (49.8) to impact ordering momentum in Q1
Adj. PAT 485 168 189.7 1,545 (68.6)
Sales 15,846 12,930 22.6 18,995 (16.6)
We expect revenue to grow 23% YoY led by strong
EBITDA 700 380 84.5 1,007 (30.5) growth in transformer and specialty oil business.
EBITDA margin would remain under pressure
Apar Industries Margin (%) 4.4 2.9 5.3
owing to steep rise in commodity prices. Key
PBT 90 -308 NA 637 (85.9) monitorable will be volume and EBITDA for
conductor and cable segment.
Adj. PAT 68 -232 NA 476 (85.8)
Sales 24,738 16,706 48.1 69,083 (64.2) We expect revenue growth 48% YoY on account of
low base and pick up in execution in new product
EBITDA 1,770 1,467 20.7 19,706 (91.0) verticals. We expect EBITDA margins to remain
Bharat Electronics Margin (%) 7.2 8.8 28.5 under pressure owing to higher fixed cost. BEL has
PBT 1,112 762 45.9 19,305 (94.2) strong OB which provides revenue visibility going
ahead. Management commentary on new products
Adj. PAT 833 541 53.9 13,524 (93.8) will be key monitorable.
Sales 38,462 19,909 93.2 71,710 (46.4) BHEL is expected to report 93% YoY growth for
EBITDA -5,705 -10,589 (46.1) -12,643 (54.9) 1Q on account of low base and significant pick up
in execution. We expect BHEL to report EBITDA
BHEL Margin (%) -14.8 -53.2 -17.6
loss due to by rise in commodity price and cost
PBT -6,760 -11,964 (43.5) -13,849 (51.2) overruns. Key monitorable would be working
Adj. PAT -6,760 -8,972 (24.7) -10,329 (34.6) capital, and order wins.
Sales 6,104 4,678 30.5 11,167 (45.3)
EBITDA 271 214 26.7 1,640 (83.5) We expect 31% YoY growth in revenues led by
pickup in execution in Consultancy & turnkey
Engineers India Margin (%) 4.4 4.6 14.7
segment. Update on order inflow and inflows and
PBT 653 653 (0.1) 1,986 (67.1) margins would be key monitorable.
Adj. PAT 490 481 1.8 1,391 (64.8)
Sales 7,831 6,428 21.8 9,045 (13.4) Revenue is expected to grow by 22% yoy on low
base and plants being shut during month of May.
EBITDA 200 3 6,140.6 446 (55.2)
EBITDA margins would be impacted due to higher
GE T&D India Margin (%) 2.5 0.0 4.9 fixed cost and rise in commodity prices. We expect
PBT 23 -262 NA 495 (95.4) ordering to be impacted on account of delay in
coversion of orders on account of second
Adj. PAT 17 -203 NA 386 (95.6) pandemic wave.
Sales 25,195 22,068 14.2 43,605 (42.2) We expect revenue to grow 14% YoY for 1Q led by
gradual pick-up in execution in domestic as well as
EBITDA 1,329 1,949 (31.8) 3,546 (62.5) international market. The company has bagged
healthy orders in 1Q resulting into OB of Rs250bn
KEC International Margin (%) 5.3 8.8 8.1
(including L1), providing strong revenue visibility.
PBT 330 964 (65.8) 2,657 (87.6) Key monitorables would be impact on margin and
working capital due to rise in commodity price and
Adj. PAT 248 708 (65.0) 1,943 (87.3) order inflows guidance for FY22.
Sales 11,191 4,982 124.6 12,465 (10.2)
We expect 125% YoY growth in revenue on
EBITDA 871 29 2,902.3 1,675 (48.0) account of low base and pickup in economic
activity and export market. Margins would remain
Cummins India Margin (%) 7.8 0.6 13.4
under pressure owing to steep rise in commodity
PBT 1,321 705 87.5 2,452 (46.1) prices. Key monitorable will be ordering activity
across export and domestic segment.
Adj. PAT 989 526 88.2 1,857 (46.7)
Sales 17,894 14,590 22.6 23,370 (23.4) KPP is expected to report 23% YoY growth in
EBITDA 1,575 1,560 0.9 2,430 (35.2) revenues led by pickup in execution. Update on
Kalpataru Power monetisation of BOOT asset will be key
Margin (%) 8.8 10.7 10.4
Transmission monitorable. Apart from this, working capital cycle,
PBT 1,095 1,010 8.4 2,010 (45.5) order inflows and revenue guidance would be key
Adj. PAT 820 690 18.9 1,300 (36.9) monitorables.
Sales 3,13,151 2,12,600 47.3 4,80,879 (34.9) We expect consolidated revenues to grow by 47%
EBITDA 31,510 16,205 94.4 63,889 (50.7) YoY for 1Q on low base and growth led in segment
like IT, financial services & infrastructure. YTD
Larsen & Toubro Margin (%) 10.1 7.6 13.3
order inflows stands at Rs220bn. Management's
PBT 22,160 6,697 230.9 57,474 (61.4) guidance on order inflows and execution would be
Adj. PAT 15,132 3,031 399.2 32,928 (54.0) key monitorable.

July 6, 2021 3
 Capital Goods

YoY gr. QoQ gr.

Company Name Q1FY22E Q1FY21 Q4FY21 Remark
(%) (%)
Sales 27,520 13,195 108.6 33,543 (18.0) We expect company to report 109% YoY revenue
EBITDA 1,870 -96 NA 4,414 (57.6) growth on low base. Steep rise in commodity
prices is expected to impact gross margin during
Siemens Margin (%) 6.8 -0.7 13.2
the quarter. Management commentary on order
PBT 1,927 -45 NA 4,326 (55.5) inflows both in domestic and international markets
Adj. PAT 1,443 -46 NA 3,158 (54.3) and its conversion would be key monitorable.
Sales 11,318 6,649 70.2 15,745 (28.1)
EBITDA 670 -114 NA 1,397 (52.0) For 1Q, we expect revenue growth of 70% YoY on
low base and rise in utilization. Management
Thermax Margin (%) 5.9 -1.7 8.9
commentary on order inflows would be key as
PBT 541 -225 NA 1,404 (61.4) order finalization is witnessing some delays.
Adj. PAT 405 -153 NA 1,074 (62.2)
Sales 1,738 1,652 5.2 1,785 (2.6)
EBITDA 302 387 (21.8) 247 22.4 We expect 5% YoY increase in revenue owing to
pick up in utilization levels. Conversion of traction
Triveni Turbine Margin (%) 17.4 23.4 13.8
into order inflows from international markets, API
PBT 282 380 (25.8) 236 19.3 turbine and sugar distillery will be key monitorable.
Adj. PAT 211 273 (22.6) 233 (9.4)
Sales 1,911 723 164.2 2,840 (32.7) We expect Voltamp to report 164% YoY growth in
revenue on account of low base. Steep rise in
EBITDA 144 29 402.8 330 (56.3)
commodity price will impact EBITDA margin due to
Voltamp Margin (%) 7.5 4.0 11.6 execution of fixed price contracts. Status on order
Transformers
PBT 223 231 (3.4) 415 (46.2) under negotiation due to rise in commodity price
and commentary from management would be key
Adj. PAT 167 193 (13.2) 311 (46.1) monitorable.

Source: Company, PL

Q4FY21 Result Snapshot

Sales EBITDA PBT Adj. PAT
(Rs mn)
Q4FY21 YoY gr. QoQ gr. Q4FY21 YoY gr. QoQ gr. Q4FY21 YoY gr. QoQ gr. Q4FY21 YoY gr. QoQ gr.
ABB IN 16,292 7.0% -4.2% 1,323 812.1% 28.9% 1,291 332.8% 60.6% 1,545 134.0% 148.3%
APR IN 18,995 6.0% 10.8% 1,007 -3.9% -37.3% 637 96.3% -39.6% 476 104.7% -42.2%
BHE IN 69,083 19.0% 200.9% 19,706 32.9% 347.5% 19,305 36.5% 423.4% 13,524 30.7% 416.5%
BHEL IN 71,710 42.8% 61.1% -12,643 125.1 603.9 -13,849 95.3 372.9 -10,329 -32.7 347.2
ENGR IN 11,167 30.8% 33.5% 1,640 47.7% 118.5% 1,986 15.3% 68.9% 1,391 7.2% 57.7%
GETD IN 9,045 36.2% -12.5% 446 NA -22.4% 495 NA -0.1% 386 NA 28.5%
KECI IN 43,605 18.8% 32.6% 3,546 -4.4% 18.7% 2,657 -1.3% 33.6% 1,943 0.7% 33.9%
KKC IN 12,465 18.4% -12.5% 1,675 151.2% -30.7% 2,452 103.0% -19.2% 1,857 57.0% -20.7%
KPP IN 23,370 1.5% 17.3% 2,430 -4.0% 17.4% 2,010 8.6% 15.5% 1,300 21.5% 26.2%
LT IN 4,80,879 8.7% 35.1% 63,889 24.8% 49.3% 57,474 35.2% 56.2% 32,928 3.0% 33.5%
SIEM IN 33,543 27.9% 15.6% 4,414 102.7% 22.2% 4,326 94.8% 22.5% 3,158 91.7% 20.4%
TMX IN 15,745 19.0% 11.6% 1,397 119.7% -5.4% 1,404 139.6% -0.5% 1,074 175.0% -3.4%
TRIV IN 1,785 16.0% 2.9% 247 38.1% -28.7% 236 52.3% -32.2% 233 68.9% -15.5%
VAMP IN 2,840 26.2% 61.6% 330 -12.3% 84.0% 415 122.3% 2.1% 311 169.2% -3.1%
Source: Company, PL

July 6, 2021 4
 Capital Goods

Management Commentary
Company Commentary
Management remains cautious in near term owing to market uncertainty on account of second wave of Covid-19. Sectors like
ABB power distribution, mining, metals, data centers, pharmaceutical, F&B, electronics, e-mobility, renewables, etc. are seeing good
traction.
Company expects steep rise in raw material and freight cost will impact margins till H1FY22 as OB comprise of legacy orders
APR which are of mostly fixed cost in nature. Focus remains towards value added product which help them gain market share, given its
superior product quality, first mover advantage and strong brand positioning.
Given strong bid pipeline (~Rs250bn), management guided OI of Rs150-170bn with healthy revenue growth of 15-20% YoY and
BHE
EBITDA margins in 20-22% range for FY22.
Management stands optimistic for exports market with demand revival expected from H2FY22, with recovery seen in China, North
KKC America and European region. For domestic market, traction continues in power generation, construction, mining and mineral
segment.
Management indicated strong traction in international T&D segment in Middle East, Africa, SAARC and MENA region. Though
KECI
domestic segment ordering pipeline remains healthy, some delay in order finalization has been witnessed.
Management remains optimistic for market recovery in FY22 with order pipeline being strong and orders coming from green
GETD energy corridor TBCB project, where GETD’s addressable market is ~Rs25bn from state utility. Going ahead, company would
continue to focus on cash flow over revenue and growth in OI.
Demand environment is vibrant across sectors primarily led by pick up in private capex cycle, short cycle orders and sharp
SIEM recovery in economic activity. Sectors such as data centre, e-commerce, waste heat recovery, smart infra, digitalization,
automation, TBCB, hospitals, sub-station, etc. would help drive growth going ahead.
Given the strong OB of Rs ~Rs139.8bn (including Linjemontage), management expects FY22 revenue to grow by 10-15% with
KPP
EBITDA margin to be in double digit.
Order pipeline remains healthy at Rs9.6trn for FY22E (domestic Rs6.6trn; exports Rs3trn), with traction in sectors like Metro,
LT Railways, Roads, Expressway, Water, Renewable and Power T&D. Management guided for low to mid teen growth in revenues
and order inflow for FY22.
Management indicated ordering activity from Tier 2-3 market specially from F&B, chemical and textile witnessed slowdown and is
TMX expected to be muted till end of Q1FY21, while big ticket orders from Oil & Gas, Chemical and FGD is witnessing traction. Sectors
like Cement, Steel, Refinery, Chemical, Pharma and F&B are expected to drive growth going ahead.
Management indicated order inflows in FY22 to be strong, mainly led by pent up demand and strong enquiry pipeline from
TRIV domestic as well as export market. Further given healthy order conversion in 1Q, it expects order inflows for product segment to
surpass the FY21 levels in H1FY22.

July 6, 2021 5
 Capital Goods
Valuation Summary

CMP TP MCap Sales (Rs bn) EBITDA (Rs bn) PAT (Rs bn) EPS (Rs) RoE (%) PE (x)
Company Names S/C Rating
(Rs) (Rs) (Rs bn) FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E
ABB India* S UR 1,758 NA 372.5 73.2 58.2 72.8 84.7 5.3 2.8 5.8 6.8 3.0 2.3 4.0 4.6 14.3 10.9 19.0 21.9 8.0 6.5 10.8 11.6 123.2 161.6 92.6 80.3
Apar Industries C Buy 540 696 20.7 74.3 63.9 66.7 73.9 4.6 4.1 5.5 6.1 1.4 1.6 2.1 2.2 35.3 41.9 53.8 58.0 11.4 12.5 13.8 13.4 15.3 12.9 10.0 9.3
Bharat Electronics S Buy 181 208 441.1 129.2 140.6 164.9 192.9 27.3 31.8 34.9 41.8 17.9 20.7 24.9 29.8 7.4 8.5 10.2 12.2 19.0 20.0 21.3 22.1 24.6 21.4 17.7 14.8
BHEL S Sell 64 34 224.4 214.6 173.1 226.2 307.3 -2.3 -31.4 -6.2 17.3 -14.7 -27.2 -7.4 10.0 -4.2 -7.8 -2.1 2.9 -4.9 -9.8 -2.8 3.8 -15.2 -8.3 -30.2 22.4
Engineers India C BUY 79 129 44.5 32.4 31.4 33.9 37.0 4.5 3.5 3.9 5.4 4.2 4.0 4.6 6.0 6.7 7.2 8.2 10.7 17.8 19.4 24.7 27.8 11.8 11.0 9.6 7.4
GE T&D India S Hold 140 141 35.7 31.6 34.5 37.3 42.4 -2.2 1.5 2.2 2.7 -2.5 0.6 1.1 1.6 -9.7 2.2 4.4 6.4 -20.1 5.2 9.6 12.9 -14.4 62.9 31.8 21.7
KEC International* C UR 420 NA 107.9 119.7 131.1 148.2 170.4 12.3 11.4 14.1 17.1 5.7 5.5 7.2 9.0 22.0 21.5 27.9 35.0 21.6 18.0 19.6 20.7 19.1 19.5 15.1 12.0
Cummins India* S UR 869 NA 241.0 51.6 43.3 53.3 59.6 5.9 5.8 6.4 7.2 6.3 6.2 6.6 7.4 22.7 22.3 23.8 26.5 15.2 14.4 14.6 15.5 38.3 39.0 36.6 32.7
Kalpataru Power
S UR 422 NA 63.2 79.0 76.7 94.2 110.5 8.6 8.1 10.2 11.9 4.4 6.2 6.0 7.3 28.4 41.0 40.1 48.8 13.1 16.6 16.3 21.3 14.8 10.3 10.5 8.6
Transmission*
Larsen & Toubro* C UR 1,506 NA 2,114.6 1454.5 1359.8 1565.8 1728.9 163.3 156.2 176.6 197.8 95.5 115.8 96.9 110.2 68.0 82.5 69.0 78.4 14.8 16.2 12.1 12.5 22.1 18.3 21.8 19.2
Siemens C Acc 2,029 2,101 722.2 137.7 99.5 131.0 153.0 14.9 10.0 14.7 17.1 11.0 7.7 11.5 13.6 30.9 21.6 32.3 38.1 12.7 8.3 11.6 12.4 65.7 93.9 62.9 53.2
Thermax C Acc 1,484 1,559 167.1 57.3 47.9 59.6 73.3 4.1 3.6 5.1 6.2 2.1 2.6 3.6 4.6 18.9 23.0 32.1 41.0 7.0 8.3 10.7 12.5 78.7 64.5 46.2 36.2
Triveni Turbine C BUY 125 156 40.5 8.2 7.0 9.7 11.1 1.6 1.5 1.9 2.3 1.2 1.2 1.4 1.7 3.8 3.7 4.2 5.2 25.3 20.7 19.9 20.9 33.3 33.5 29.5 24.0
Voltamp Transformers S Acc 1,462 1,565 14.8 8.6 6.9 9.1 11.2 1.1 0.8 1.0 1.3 0.9 1.1 1.0 1.3 88.3 110.9 100.7 130.4 12.5 14.2 11.7 13.8 16.6 13.2 14.5 11.2
Source: Company, PL S=Standalone / C=Consolidated / Acc=Accumulate / UR = Under Review *: Due to recent run-up in the stock price, we have placed the ratings UR and will revise the
rating post result

July 5, 2021 6
 Capital Goods
Change in Estimates
Sales PAT EPS
Rating Target Price
FY22 FY23 FY22 FY23 FY22 FY23
% % % % % % %
C P C P C P C P C P C P C P C P
Chng. Chng. Chng. Chng. Chng. Chng. Chng.
ABB India* UR Hold NA 1,337 NA 72,849 72,849 0.0% 84,716 84,716 0.0% 4,022 4,022 0.0% 4,638 4,638 0.0% 19.0 19.0 0.0% 21.9 21.9 0.0%
Apar Industries Buy Buy 696 696 0.0% 66,661 66,661 0.0% 73,906 73,906 0.0% 2,060 2,060 0.0% 2,220 2,220 0.0% 53.8 53.8 0.0% 58.0 58.0 0.0%
Bharat Electronics Buy Buy 208 208 0.0% 1,64,921 1,64,921 0.0% 1,92,866 1,92,866 0.0% 24,865 24,865 0.0% 29,825 29,825 0.0% 10.2 10.2 0.0% 12.2 12.2 0.0%
BHEL Sell Sell 34 34 0.0% 2,26,247 2,26,247 0.0% 3,07,287 3,07,287 0.0% -7,431 -7,431 0.0% 10,002 10,002 0.0% -2.1 -2.1 0.0% 2.9 2.9 0.0%
Engineers India BUY BUY 129 129 0.0% 33,910 33,910 0.0% 37,046 37,046 0.0% 4,630 4,630 0.0% 6,029 6,029 0.0% 8.2 8.2 0.0% 10.7 10.7 0.0%
GE T&D India Hold Hold 141 141 0.0% 37,292 37,292 0.0% 42,441 42,441 0.0% 1,124 1,124 0.0% 1,646 1,646 0.0% 4.4 4.4 0.0% 6.4 6.4 0.0%
KEC International* UR Acc NA 420 NA 1,48,206 1,48,206 0.0% 1,70,398 1,70,398 0.0% 7,170 7,170 0.0% 9,002 9,002 0.0% 27.9 27.9 0.0% 35.0 35.0 0.0%
Cummins India* UR Hold NA 796 NA 53,290 53,290 0.0% 59,606 59,606 0.0% 6,591 6,591 0.0% 7,359 7,359 0.0% 23.8 23.8 0.0% 26.5 26.5 0.0%
Kalpataru Power
UR BUY NA 448 NA 94,181 94,181 0.0% 1,10,510 1,10,510 0.0% 6,016 6,016 0.0% 7,315 7,315 0.0% 40.1 40.1 0.0% 48.8 48.8 0.0%
Transmission*
Larsen & Toubro* UR BUY NA 1,604 NA 15,65,756 15,65,756 0.0% 17,28,877 17,28,877 0.0% 96,940 96,940 0.0% 1,10,187 1,10,187 0.0% 69.0 69.0 0.0% 78.4 78.4 0.0%
Siemens Acc Acc 2,101 2,101 0.0% 1,31,047 1,31,047 0.0% 1,53,005 1,53,005 0.0% 11,485 11,485 0.0% 13,570 13,570 0.0% 32.3 32.3 0.0% 38.1 38.1 0.0%
Thermax Acc Acc 1,559 1,559 0.0% 59,567 59,567 0.0% 73,293 73,293 0.0% 3,616 3,616 0.0% 4,621 4,621 0.0% 32.1 32.1 0.0% 41.0 41.0 0.0%
Triveni Turbine BUY BUY 156 156 0.0% 9,657 9,657 0.0% 11,137 11,137 0.0% 1,374 1,374 0.0% 1,684 1,684 0.0% 4.2 4.2 0.0% 5.2 5.2 0.0%
Voltamp Transformers Acc Acc 1,565 1,565 0.0% 9,100 9,100 0.0% 11,206 11,206 0.0% 1,018 1,018 0.0% 1,319 1,319 0.0% 100.7 100.7 0.0% 130.4 130.4 0.0%
Source: Company, PL C=Current / P=Previous / Acc=Accumulate / UR = Under Review *: Due to recent run-up in the stock price, we have placed the ratings UR and will revise the rating
post result

July 5, 2021 7
 Capital Goods
Analyst Coverage Universe
Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 ABB India Hold 1,337 1,388
2 Ahluwalia Contracts (India) Accumulate 410 392
3 Apar Industries BUY 696 524
4 Ashoka Buildcon BUY 160 115
5 Bharat Electronics BUY 208 169
6 BHEL Sell 34 67
7 Capacite's Infraprojects BUY 270 213
8 Container Corporation of India Hold 607 634
9 Cummins India Hold 796 772
10 Engineers India BUY 129 84
11 GE T&D India Hold 141 137
12 H.G. Infra Engineering BUY 476 414
13 IRB Infrastructure Developers BUY 179 158
14 ITD Cementation India BUY 97 88
15 J.Kumar Infraprojects BUY 272 190
16 Kalpataru Power Transmission BUY 448 382
17 KEC International Accumulate 420 417
18 KNR Constructions Accumulate 253 245
19 Larsen & Toubro BUY 1,604 1,416
20 NCC BUY 111 91
21 PNC Infratech UR - 306
22 Power Grid Corporation of India BUY 205 170
23 Sadbhav Engineering Accumulate 97 82
24 Siemens Accumulate 2,101 2,064
25 Thermax Accumulate 1,559 1,455
26 Triveni Turbine BUY 156 123
27 Voltamp Transformers Accumulate 1,565 1,424

PL’s Recommendation Nomenclature

Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly

July 6, 2021 8
 Capital Goods

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Date: 2021.07.06 16:26:06 +05'30'