Is the comeback in pharma here to stay? Should you buy expensive capital goods stocks?

economictimes.indiatimes.com:

Dipan Mehta, Director, Elixir Equities, says the next three to five quarters are very interesting for Siemens, ABB, and other high tech capital goods manufacturing companies. They have largely restructured their businesses. They are focused only on products and services where they have a clear cut technology edge.

They have a lot of support from their parent company. All these companies are exploring exports through the parent company now that make in India export from India has gathered so much momentum globally as well. There are many positive dynamics for the likes of Siemens, ABB and such companies.

It's just that from an investor's perspective, the valuation ratios are a bit daunting.Let us begin by just getting in your thoughts on the auto space and what exactly you make of the kind of response that we have seen to the initial bookings for the Hero Harley bike? What could be the implications for Eicher and other players? Is it critical that they sustain their performance down the line?I am not surprised with the response that the Harley model has got for Hero MotoCorp. Initial new registrations or new order bookings are always strong. No doubt, there is one more competitor in the market for Eicher Motors but the market itself is expanding rapidly.

A lot of Eicher sales come from that 250cc to 350cc type of range whereas Harley Davidson and Bajaj Triumph are beyond 350cc range. Of course, they will have some pricing strategies in place to take on a market leader. There is no doubt that they will chip away at Eicher Motors' market share as well.

But the entire segment is growing pretty fast. Eicher still has adequate room to grow. They certainly have an edge over Hero MotoCorp and Triumph in terms of the brand, cult