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ICICI Securities maintains L&T as top pick in capital goods and infra space

Updated : July 18, 2019 12:30 PM IST

Maintaining L&T as its top pick in the capital goods and infra space, ICICI Securities said that the company's order intake has been better compared to the overall industry.

The Q1 earnings are expected to be led by Larsen & Toubro (L&T) as well as other capital goods majors like Siemens and Thermax. On the flip side, companies that could drag the performance for the sector include names like Cummins, ABB, Dilip Buildcon.

“L&T order intake has been better compared to the overall industry. However, we will have to wait for execution as because of the election, there is expected to be some slowdown,” said Renjith Sivaram of ICICI Securities.

“We expect the margins to be better-off compared to last year because they had some losses in the transportation division last year under infra, so margin should catchup this quarter,” he added.

“We also like Siemens... we maintain Siemens as our next pick after L&T,” he further mentioned.
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