Obsessed with consumption stocks? You might just miss this goldmine
If you are looking at consumption as a big stock investment theme in the hope of big pre-election sops for rural India, think again.
Capex revival might just turn out to be a more rewarding theme.
There are early signs of a revival in the private capex cycle, as signalled by improved capacity utilisation levels across industries. Reasonable valuations and strong short-term earnings visibility are key factors making these stocks look attractive.
Capacity utilisation
Minutes of December 3-5 monetary policy committee meeting bear this out. It says capacity utilisation, as measured by the RBI’s order books, inventories and capacity utilisation survey, rose to 76.1 per cent in September quarter from 73.8 per cent in June quarter.
Minutes of December 3-5 monetary policy committee meeting bear this out. It says capacity utilisation, as measured by the RBI’s order books, inventories and capacity utilisation survey, rose to 76.1 per cent in September quarter from 73.8 per cent in June quarter.
This was higher than the long-term average of 74.9 per cent. High frequency indicators are also hinting at an improvement in industrial activity during December quarter. If utilis ..
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