Capital Goods - Winds Of Change; Powering Up For Sustainable Growth: Motilal Oswal's Thematic View

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The capital goods sector has started benefitting from the government’s initiatives towards incremental capex spending, revival in select pockets of the private sector, improving growth outlook from international geographies (particularly GCC nation) and favorable raw material prices. Government has already set the ball rolling by undertaking long-term capex across key areas such as transmission, clean energy, railways, Make in India, production linked incentive, defense indigenisation, et al. until FY30, which provides a strong addressable market for capital goods companies. Energy transition-related investments too are driving capex across domestic as well as international markets. The combined capex of government and listed corporates increased to Rs 21.3 trillion in FY23 from Rs 14.3 trillion in FY19. This is budgeted to grow to Rs 26 trillion in FY24 and will move up further with these initiatives. As per our analysis of BSE500 companies, private sector capex has also started growing over last two years and will get further boost from PLI led capex, expected investments in energy transition initiatives as well as growth seen in data centres, electric vehicle etc. Thus, we believe that the entire capex is falling in place for the next decade that will augur well for the capital goods companies..Click on the attachment to read the full report:.BJP’s Astounding Victory In Three States Will Recharge Bulls, Say Analysts.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Capital Goods - Winds Of Change; Powering Up For Sustainable Growth: Motilal Oswal's Thematic View

Correction in raw material prices bodes well for sector particularly for companies where fixed-price contracts have dominant share

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