Prabhudas Lilladher's report on capital goods"Q1FY16 earnings season was below expectation with muted performance on sale, profitability and order inflows. With weak private sector balance sheets, government is trying to push public expenditure to help revive investment cycle (planned capital expenditure up 23% YoY in Q1FY16). While Corporate India has acknowledged that government’s efforts are in the right direction in terms of policy action and expect benefits to be visible over the next 2-4 quarters, commentaries on end markets Renewable/Power T&D/Power BTG/Roads/Railways/Roads/Genset were positive for the year ahead. Being on the cusp of change, we prefer companies with sustainable competitive advantage and those which can deliver sustained earnings growth over the next few years. Our preferred picks are L&T and Cummins India", says Prabhudas Lilladher research report.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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