A resilient show by capital goods firms may mask weakness in India capex cycle
Barring some strain on the working capital front, most capital goods firms should clock double-digit growth in profits
Investors must recognize that revenue growth in Q4 FY19 will be driven by the strong order book of the past
The BSE Capital Goods index has risen 13% from its lows in mid-February, slightly more than the 10.5% gain in the BSE 500 index. This is despite the recent news on weak order flows in the run-up to the general elections and the sluggish capital expenditure (capex) cycle.
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