Capital Goods space looks attractive: Jigar Shah

In a chat with ET Now, Jigar Shah, Senior VP and Head Of Research, Kimeng Securities India Private Ltd, talks about Capital Goods space


What is the call on overall cap goods space?

L&T numbers were not all that bad and their order intake was fairly alright under the situation where we know that the capex cycle has slowed down. Same is the case with BHEL.

The valuation appears attractive. Numbers have been quite alright and the company is looking at more aggressive growth for the future.

Similarly quite a few capital goods companies in the power transmission distribution segment look attractive such as Kalpataru Power and Transmission which we like.

The company will be able to grow 30% plus in the current year. Similarly is the case with Sterlite Technologies which is likely to recover its margin and volume growth in power conductor business in the current year and apart from that, we like the story in wind turbines where the growth in India is coming back significantly after the government’s incentives are working well and lot of new corporates are putting investments in the wind power business.

We like Suzlon in that particular segment. So yes, selectively power transmission distribution related companies in particular look quite attractive.