The document contains information about 6 group members working on a project about the capital goods sector. It then provides details on the capital goods sector including its introduction, current scenario, budget details, future growth, and challenges. It discusses two companies, Bharat Electronics Limited and Honeywell Automation India Limited, providing their introduction, products, vision, and mission. It also includes a ratio analysis comparing the two companies. The document ends with recommendations for Larsen & Turbo and Gammon India Ltd based on ratio and technical analysis.

1. Group members
1) DIVYA SHETTIGAR
2) KESHAV GITE
3) KRUTIKA SACHDE
4) LALIT DHURI
5) RUPESH REGE
6) SWAPNIL WAGULDE

2. CAPITAL GOODS SECTOR
 Introduction
 Current scenario
 Budget
 Future growth
 Challenges and strategies

3. Introduction
 Backbone of manufacturing industry.
 Cumulative foreign direct investments (actual inflows)
in the capital goods industry amounted to over US $ 1.6
billion since January 2000.
 The capital goods industry contributes 12% to the
total manufacturing activity (which is about 15% of the
GDP).
 Capital goods and engineering sector as strategic
sector for Indian economy

4. •Budget
1)Road construction:
 A regulatory authority for road sector.
 3000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra,
Rajasthan and Uttar Pradesh will be awarded in the first six months of
2013-14.
2) Industrial corridors:
 Plans for seven new cities have been finalised and work on two
new smart industrial cities at Dholera, Gujarat and Shendra
Bidkin, Maharashtra will start duing 2013-14
 Delhi Mumbai Industrial Corridor (DMIC) to be provided
additional funds during2013-14 within the share of the
Government of India in the overall outlay, if Required.

5. 3) Ports:
 Two new major ports will be established in Sagar, West Bengal and in
Andhra Pradesh to add 100 million tonnes of capacity.
 A new outer harbour to be developed in the VOC port at
Thoothukkudi, Tamil Nadu through PPP at an estimated cost of ` 7,500
crore.

6. 4) National waterways:
 A bill to declare the Lakhipur-Bhanga stretch of river Barak in Assam as
the sixth national waterway to be moved in Parliament.
 Preparatory work underway to build a grid connecting waterways,
roads and ports.
5) Micro, Small and Medium Enterprises:
 Benefits or preferences enjoyed by MSME to continue upto three years
after they grow out of this category.
 Refinancing capacity of SIDBI raised to ` 10,000 crore.

7. 6) Textiles:
 Technology Upgradation Fund Scheme (TUFS) to continue in 12th
Plan with an investment target of ` 1,51,000 crore.
 Allocation of ` 50 crore to Ministry of Textile to incentivise setting up
Apparel Parks within the SITPs to house apparel manufacturing units.

8. 7) Agricultural credit :
 For 2013-14, target of agricultural credit kept at ` 7 lakh crore.
 Interest subvention scheme for short-term crop loans to be continued
scheme extended for crop loans borrowed from private sector scheduled
commercial banks.
8) Green revolution :
 500 crore allocated to start a programme of crop diversification that
would Promote technological innovation and encourage farmers to
choose crop
alternatives.

9. Current scenario
 Industrial growth has remained subdued since July 2011 due
to weak global demand, weak supply linkages, high import
costs, and sluggish investment activities.
 During 2012-13 (April to November), industrial growth
slowed to 1.0 per cent,The Industrial sector was mainly
affected by the contraction in the output of capital goods

10. Future growth
 Capacity creation and transformation in sector is
driving growth in the engineering industry
 It contributes to domestic and international demand
for engineering goods from India

11. Challlenges and strategies
challenges
 Technological Competency
 Import of Second Hand Capital Goods
 Cost Competitiveness
Strategies
 Transformation in Objective and Approach
 Strengthening Research and Development
 Strengthening Technological Competencies

12. Bharat Electronics Limited
 Introduction
• Set up at Bengaluru , India – 1954
•
State-owned electronics company with about nine factories, and few
regional offices in India.
• Manufacture and supply of strategic electronic products primarily to
Defense Services.
• It has grown into a multi-product, multi-technology, multi-unit
company serving the needs of customers in diverse fields in India and
abroad.
• One of the eight PSUs under Ministry of Defence, Government Of
India.
• It has even earned the government's Navratna status.

13.  Products
• BEL Weapon Locating Radar
• BEL Battle Field Surveillance Radar(BFSR-SR)
• LYNX II
•
•
•
•
•
•
•
•
•
•
radar warning receivers
composite communication system
night vision devices
versatile communication system (VCS)
IFF Interrogator
X-Ray tube
radar finger printing system
V/ultra high frequency (UHF) search receivers
printed circuit board (PCB) assembly
components and mechanical assemblies

14.  Vision
To be a world - class enterprise in professional electronics
 Mission
To be a customer focused, globally competitive Company in defence
electronics and in other chosen areas of professional electronics, through
quality, technology and innovation.

15. Honeywell Automation India Limited
 Introduction
• Set up at Pune - 1988
• A market leader in Electronics-Instrumentation and
Process Control equipment industry.
• leading provider of Integrated automation and
software solution that improves productivity
enhancing comfort and ensuring the safety and
security to homes and business premises.
• First one & only company in India- Awarded the
prestigious ISO 9001 certificate.
• With over 2500 employees and an annual turnover of
about Rs. 868 crores.

16.  Product & Services
• Control & safety Systems
• Terminal Automation Products
• Sensing & Controlling Systems
• Global Engineering Services

vision
With a vision that spurs the company to enchance.
 Mission
To improve the businesses of our clients and we carry out that mission by
delivering leading-edge automation and control solutions, equipment and
services.

17. Ratio analysis
Ratio name
Bharat Electronics ltd
Honeywell Automation
India ltd
1) Current ratio
1.54
2.32
2) Debt equity ratio
-
-
4) Asset turnover ratio
1.08
2.49
5) Interest coverage ratio
1,798.54
351.94
6) Net profit margin
13.06%
5.09%
7) EBDITA margin
1,200.0
133.7
8) ROCE
19.14%
16.96%
9) Earning per share
103.74
96.33
10) Price earning ratio
15.2
29.1
3) Shareholders equity
ratio

18. Recommendation
 Bharat Electronics ltd.
 Buy- @ Rs 1,267.00 on 31 May 2013
 Due to Bharat Electronics (BEL) reported sales of Rs27.2bn in Q4 (up 22%
YoY)
 The stock is trading at 10x FY14E earnings. We expect stock to deliver 10%
and 12% CAGR on sales and earnings over FY13-15E.
• Honeywell Automation India ltd.
 Hold – company Q4 net profit falls to 57% to Rs.15.3 cr.

19. LARSEN&TURBO
 Introduction:



Larsen & Toubro Ltd (L&T) is a technology, engineering, construction
and manufacturing company.
It is established in 1938 by two danish engineers Larsen and Soren Turbo.
Larsen & Toubro Ltd was incorporated in the year 1946 as a private limited
company.
 Business segmentation:
•
•
•
•
•
engineering and construction
electrical & electronics
machinery & industrial products
financial services
development projects

20.  Vission:
•
L&T SHALL BE PROFESSIONALLY MANAGED INDIAN
MULTINATIONAL,COMITTED TOTAL CUSTOMER SATIAFACTION AND
ENHANCING SHARE HOLDERS VALUE.
•
L&T-ites SHALL BE INNOVATIVE,ENTREPRENEURIAL AND EMPOWERED
TEAM CONSTANTLY CREATING VALUES AND ATTENDING GLOBAL
BENCHMARKS.
•
L&T SHALL FOSTER A CULTURE OF CARING ,TRUST AND CONTINUOS
LEARNING WHILE MEETING EXPECTATION OF
EMPLOYEES,STAKEHOLDERS AND SOCIETY
"

21. Gammon India Ltd.
 Introduction:
 Founded by Mr J. C. Gammon
 Gammon India was incorporated in the year 1922 as a private limited
company
 Products:
 INFRASTRUCTURE
 IRRIGATION PROJECTS
 POWER PROJECT
 GROUND ENGINEERING AND WATER SUPPLY

22.  Vision:
“To Consistently build the reputation of Gammon amongst all
stakeholders as a respected and influential leader in the Construction
and Infrastructure Domain with Global Presence and Local Expertise
backed with a sustained focus on attributes of Sustainability and
Profitability and Employee engagement and Pride”

23. Ratio analysis
Ratio name
Larsen&Turbo
Gammon Ind.Ltd.
1) Current ratio
1.20
1.12
2) Debt equity ratio
0.39
1.20
3) Dividend payout ratio
24.95%
3.64%
4) Asset turnover ratio
1.66
1.20
5) Interest coverage ratio
13.62
1.43
6) Net profit margin
8.18%
1.52%
7) EBDITA margin
28.28%
24.78%
8) ROCE
23.67%
10.46%
9) Earning per share
72.77
6.41
10) Price earning ratio
17.47
18.39

24. Technical analysis:
1) Larsen&Turbo

1 year chare on daily basis:

25. Gammon Ind.Ltd.
 1 year chart on daily basis:

26. Recommendation on fundamental
basis
 Larsen&Turbo
 Gammon Ind.Ltd.

27. Siemens Ltd
 Siemens’ heritage in India dates right back to 1867
 Leading powerhouse in electronics and electrical engineering with a




business volume aggregating about Rs. 12,000 crore.
Operates in the core business areas of Industry, Infrastructure & Cities,
Energy and Healthcare.
It has a nation-wide sales and service network, 21 manufacturing plants
and employs about 18,000 people.
Siemens in India focuses on sustainable growth, innovation and
environmental solutions.
Along with leveraging its strong presence in the high-end technology
segment, Siemens is also building a portfolio of innovative, simple-to-use,
maintenance-friendly, affordable, reliable and timely-to-market solutions
customized for India.

28. ABB Ltd.
 The Company was incorporated on 24.12.1949
 Leader in power and automation technologies
 Operates in around 100 countries and employs about
130,000 people.
 ABB’s operations are organized into five global divisions1. Power products
2. Power system
3. Discrete automation and motion
4. Low voltage products
5. Process automation

29. Ratio analysis
Ratio name
ABB ltd
Siemens ltd
1) Current ratio
1.16
1.28
2) Debt equity ratio
0.13
3) Interest coverage ratio
5.77
4) Net profit margin
1.81
6.98
5) EBDITA margin
3.20
8.55
6) ROCE
8.52
31.23
7) Earning per share
6.48
10.09
8) Price earning ratio
96.51
103.08

30. Recommendation
 ABB Ltd.
 Siemens Ltd.

31. Greaves cotton ltd.
 Introduction:



Established in 1859.
one of India's leading and well-diversified engineering companies.
The Company's core competencies are in Diesel / Petrol Engines,
Gensets, Pumpsets and Construction Equipment.
 Products :





Farm equipment.
Automotive engines.
Auxiliary power.
Construction equipment.
Industrial engines.

32.  Mission:
"To manufacture and market a wide range of high quality products,
services and systems of world class technology to the total
satisfaction of customers in domestic and overseas markets.“

33. Suzlon Energy
 Introduction:
 It commenced it’s operation in 1995.
 One of the major global leader in the wind power energy.
 It’s customer mix comprising of SMEs, large corporate house, PSU and
utility sector.
 Products:
 S9X suite-2.1MW:
 S88-2.1MW:
 S82-1.5MW:
 S66-1.25MW:
 S52-600KW:

34.  Vision:
 To be the technology leader in the wind sector.
 To be in the top three wind companies in all the key markets of the
world.
 To be the global leader in providing profitable, end-to-end wind power
solutions.
 To be the 'company of choice' for stakeholders.

35. Ratio analysis
Ratio name
Greaves cotton
Suzlon energy
1) Current ratio
1.95
0.67
2) Debt equity ratio
0.03
2.15
3) Shareholders equity
ratio
62.87%
16.36%
4) Asset turnover ratio
1.58
0.1
5) Interest coverage ratio
-1.01
6) Net profit margin
10.57%
-171%
7) EBDITA margin
11%
-0.84
8) ROCE
17.38%
-8.4%
9) Earning per share
5.7
-16.82
10) Price earning ratio
11.89

36. Recommendation
 Greaves cotton
 suzlon energy

37. Jindal saw ltd.
 Introduction
 It started operation in the year 1984.
 one of the country's topmost industry houses and the foremost
indigenous steel producers and exporters.
 Using international acclaimed U- O-E technology.
 Diversified from a single product company to a multi-product
company.
 Products
 Seamless Pipes & Tubes
 large diameter pipes
 Ductile Iron(DI) Pipes

38.  Vision
”sustainable development firmly in place, Jindal SAW
has played a leading role in developing livable cities
across the world - that in turn has helped transform
the lives of people staying in them.”

39. Punj lloyd ltd
 introduction
• Founded in 1988
• A global US $ 2.06 billion EPC conglomerate
• Providing services in Energy, Infrastructure and Defence s
• Present across Middle East & Africa, Asia Pacific, South A
• International offices in 21 countries
• Rich multicultural manpower from over 37 nationalities
• International clients from top Oil & Gas majors and Gover
• Equipment assets worth US $ 426 million
•Declared ‘Infrastructure Company of the Year’ at Essar steel Infrastructure
award 2010 in association with CNBC TV 18.

40.  Projects





Offshore & Onshore Field Development
Pipelines
Tankage and Terminals
Defense equipment
infrastructure projects
 Vision
 To be the Company of choice for our clients in our global markets, for all
our business, driven by entrepreneurial spirit, cutting edge technology and
execution excellence.
 Mission
 We will deliver reliable, high-quality solutions for global infrastructure,
always ensuring that integrity, safety and sustainability are at the heart of
everything we do.

41. Ratio analysis
Ratio name
Jindal saw ltd
Punj lloyd ltd
1) Current ratio
1.33
1.41
2) Debt equity ratio
19.39
57.67
3) Shareholders equity
ratio
0.01
0.01
4) Asset turnover ratio
0.7
0.77
5) Interest coverage ratio
3.86
1.16
6) Net profit margin
4.24%
0.98%
7) EBDITA margin
0.12
0.13
8) ROCE
0.05
0.02
9) Earning per share
8.12
1.74
10) Price earning ratio
22.28
35.20

42. Recommendation
 Jindal saw ltd.
 Punj lloyd ltd.

43. Bharat Heavy Electrical Limited
 Introduction:



Established in 1956.
BHEL is one of the largest engineering and manufacturing
enterprises in India.
Manufacture electrical equipment required for generation, transmission
and utilization of electrical power.
 Products :





Steam Turbines
Piping Systems
Compressors
Turbo generators
Pumps

44. Company Background
 BHEL is one of the largest engineering and manufacturing enterprises in India
and is one of the leading international companies in the field of power
 Work force of 62,500, out of which over 11,000 are highly qualified engineers
 BHEL has 14 manufacturing units
 Incorporated as Heavy Electricals (Pvt.) Limited in August 1956
 Manufacture electrical equipment required for generation, transmission and
utilization of electrical power
 Heavy Electricals (India) Limited formally merged with Bharat Heavy Electricals
Limited (BHEL) in 1974

45. Vision , Mission, Values
Vision :A global engineering enterprise providing solutions for a better
tomorrow
Mission:Providing sustainable business solutions in the fields of energy, industry
& Infrastructure
Values:Governance
Respect
Excellence
Loyalty
Integrity
Commitment
Innovation
Team work

46. Praj Industries
 Introduction:
 Praj Industries was set up in 1984.
 One of the major global leader to deliver cutting edge technologies to
distillery industries. .
 It is leading biofuel Technology Company providing number of
processes and systems for ethanol and biodiesel productions.
 Products:
 Alcohol / Fuel Ethanol Plants
 Brewery Plants
 Water and Wastewater Treatment
 Critical Process Equipment and Systems
 Bionutrients
 Agri Services

47. Vision , Mission, Values
Vision :We aspire to be the most preferred organization for all stakeholders
through environment friendly, sustainable solutions that can make world
a better place
Mission:Develope and deliver cost-effective, safe, clean and reliable solutions
that will maximize prosperity of our customer
Values:Integrity
Innovation
Respect

48. Ratio analysis
Ratio name
BHEL
PRAJ
1) Current ratio
1.37
1.09
2) Debt equity ratio
3.15
0.05
3) Shareholders equity
ratio
67.72%
36.65%
4) Asset turnover ratio
5.07
1.58
5) Interest coverage ratio
200.25
201.90
6) Net profit margin
13.99%
7.13%
7) EBDITA margin
24.2%
9.47%
8) ROCE
45.14%
20.20%
9) Earning per share
28.76
3.67
10) Price earning ratio
31.30
9.88

49. Recommendation
Buy
PRAJ
(YES)
(NO)
=
NO
Reason = As per the ratio analysis
BHEL
Hold
PRAJ
(YES)
(NO)
=
NO
Reason = As per the ratio analysis
BHEL
Sell
PRAJ
(YES)
(NO)
=
YES
Reason = As per the ratio analysis
BHEL
YES
YES
NO