12 stocks that are poised for take off
These sector bellwethers are likely to benefit from higher capacities
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Last Updated: Mar 27, 2018, 14:37 IST1 min
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Now, Indian companies have far cleaner balance sheets and an economy averaging 6.5 percent growth has meant that capacity utilisation rates have inched up to 73 percent. Some sectors are still saddled with excessive debt or capacity or both, but several companies are now talking about adding an extra production line or putting up a greenfield plant.
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Auto and engineering have emerged as two bright spots. With car and two-wheeler sales booming and truck sales also showing an uptick, next round of capacity additions are being planned. Look for small auto component companies that are available at cheaper valuations than the original equipment manufacturers.
This equity portfolio is not a defensive play and so a steep tumble or volatility in the markets could result in temporary capital loss. It’s also not a one-size-fits-all portfolio. In some cases, stories may have already started playing out (KEC International) whereas in others, the market is still waiting for confirmation (Siemens).
Happy investing!
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First Published: Mar 27, 2018, 14:37
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