Capital goods companies like Crompton, ABB to focus on export business: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on capital goods pack. Excerpts:

ET Now: So if the outlook for power sector per se is slightly hazy what explains the underlying momentum in a Voltas, Crompton, ABB or Thermax?

Prakash Diwan: If you look at the kind of businesses structures they have adapted themselves to no more are they dependent on the government backed capex, which used to the mainstay of most of these companies order book. What they have done is they have gone into some of the captive power units, and started reconfiguring their equipment output which is much to suit different market segments.

Also, some of them like Crompton, ABB have distinctly started focusing much on the overseas market. The cues came from L&T about an year ago when they said that the international business was much more stronger than the domestic one and that is exactly where it continues to build up. So, these companies will find avenues to deploy their inventory, deploy their capacities in a profitable way and not depend on the domestic capex cycle.