Cap goods cos steaming ahead
Mint Mumbai|October 18, 2023
The S&P BSE Capital Goods index is among the top performing sectoral indices in 2023, gaining about 44% so far. Capital goods companies are expected to be key beneficiaries of higher government spending, and increased private sector capex, some of it thanks to production-led incentive schemes. The ongoing trends in automation, digitalization and electrification also help. For defence companies, investors are gung-ho on the indigenization theme.
Dipti Sharma

Against this backdrop, with better supply chain dynamics and execution of a strong order backlog, capital goods companies are positioned for strong revenue growth in the September quarter (Q2FY24). Lower raw material and freight costs are also expected to support profitability.

According to JM Financial Institutional Securities, revenue of capital goods companies in Q2FY24 will remain healthy, owing to decent order book growth and sustained demand from end users. 

Diese Geschichte stammt aus der October 18, 2023-Ausgabe von Mint Mumbai.

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Diese Geschichte stammt aus der October 18, 2023-Ausgabe von Mint Mumbai.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

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