A lot of juice still left in the engineering sector: Nilesh Doshi

economictimes.indiatimes.com:

«You can name any number of companies and everybody is today exporting in a very large way. So, yes, I agree and I feel that yes there is a lot of juice left in the sector.

There could be ups and downs, but overall as long as the European and American economy is stable I think there is a lot of juice left,» says Nilesh Doshi, Green Lantern Capital.This entire mid-to-small-cap engineering value chain, very few understand this space but it has done phenomenally well. Do you see some more juice left in this entire theme right now? I think I would like to correlate with something what happened in the chemical space over last seven years.

We have seen China plus one story and we have also seen a lot of really game changers which happened in the chemical space and the speciality chemical space. On a similar parallel, if I look at engineering space what is important is that most of these companies had good capacities on ground and post 2009 crisis they had a lot of disturbances in terms of balance sheet, the financial and the demand but post COVID what we are seeing is that they have done a lot of road work and entering into the global market which is resulting into a lot of orders and really it is fruitful to the business the way it is unfolding and simultaneously, these companies actually cleaned up their balance sheet extremely well.