Never seen such a manufacturing revolution! Buy stocks with good earnings & cash flows: Devang Mehta

economictimes.indiatimes.com:

Devang Mehta, Director-Equity Advisory, Centrum Wealth Management, says “we like a host of capital goods stocks, be it Siemens, be it in the bearing space or motion management, something like a Timken India. I am not suggesting any buys, but these are some companies which we track very closely that bring a lot of order activity, right from railways to ports to a lot of such companies doing greenfield and brownfield projects. This looks like an extremely interesting space, be it automation, be it capital goods ancillaries, power ancillaries. This pace, for the next two, three years becomes more structural rather than a short-term cyclical.”


The J. Kumar Infrastructure management is quite bullish about the kind of order inflows they are seeing and very confident about beating their guidance as well. Do you have any view on J. Kumar or any other infrastructure name?
Devang Mehta: I think, yes, clearly this is one space infrastructure, be it capital goods, be it infrastructure, roadways, ports, railways.

all these companies have been on a roll. And that is necessarily because order activity, execution have picked up. Public capex, government investment and also private capex and private investments are coming into a lot of such segments.

Not commenting specifically on J. Kumar Infra, but we like a host of capital goods stocks, be it Siemens, be it in the bearing space or motion management, something like a Timken India. I am not suggesting any buys, but these are some companies which we track very closely that bring a lot of order activity, right from railways to ports to a lot of such companies doing greenfield and brownfield projects.