Capital Goods Q4 Preview - Strong Signs Of Recovery; Resurgence Of Covid-19, Not A Good Sign: Anand Rathi
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Anand Rathi Report
Aided by economic activity picking up, operations have largely risen to pre-Covid-19 levels.
With this, we expect a better Q4 FY21 for engineering procurement and construction and product companies.
Orders and the pipeline continue to be healthy due to pro-growth government policies with higher capex allocation in the Union budget, followed by the production linked incentive scheme to boost domestic manufacturing.
Visible signs of recovery can be seen in private capex, with greater spends on automation and digitisation.
Sectors showing order traction are railways; power transmission and distribution, flue gas de-sulphurisation, pharma, auto, food and beverages, data centres, water and oil and gas.
We are cautious, though, regarding the second wave of Covid-19.
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