Cautious about capital goods sector: IV Subramaniam, Quantum AMC

In a chat with ET Now, IV Subramaniam, MD & CIO, Quantum Advisors, Director, Quantum AMC, shares his views on the capital goods sector.

ET Now: What do you do with any of the large capital good companies?

IV Subramaniam: We had actually exited quite a few of these large cap engineering companies. They were very cheap around the middle of last year, roughly around July-August. But since then, the stocks are up by around 100 per cent and valuations definitely do not look cheap.

While they will definitely have more orders coming in going forward, but the time period between announcements, order taking and between execution is quite large and given the risk of execution, I would be cautious into buying into any of these stocks at this point in time.