One should have presence in stock market in a sector which is relevant and have the potential to grow aggressively in short and medium term. And icing on the cake will be if one can pick up stocks in that sector at an attractive value. The above is the most ideal situation for any investor.
The renewed emphasis on Indian infrastructure sector is noticeable in recent past, and the capital goods stocks are reaping maximum benefits. They have ever increasing order books as the result of overall well being of Indian economy. The strong quarterly numbers in this sector confirms that the general concern of this sector like execution risk, momentum of order book and funding will not be problem in foreseeable distance. We should not forget, we are targeting 9% GDP growth in the 11th Five Year Plan.
I have identified some stocks which in all probability will be the future leaders in capital good sector. The large caps like L&T, BHEL, Suzlon Energy are already been in the radar of most of the small investors.
The strong momentum of some visible mid caps is noticeable; Thermax, Punj Llyod, Cummins, Siemens, Alfa Laval etc are holding good promises.
Now for small investors let’s go back to first para of this blog: to pick up the selected capital good stocks at attractive value. Stock market is full of surprises, nobody is sure when the stocks will be presented to us on a platter to our likings. But can we pick them at that opportunate moment? I am not sure, downward price of any stock makes us doubting Thomas, and we miss the opportunities.
Let’s be prepared and not miss any opportunity. These stocks will make our portfolio richer.
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