According to Emkay Global, after slow ordering during Oct-Nov '22, the sector has managed to end 3QFY23 with a decent 20% YoY growth and 14% 4-yr CAGR in ordering.
Ex Roads, awards saw 19% growth on 4-yr CAGR basis.Importantly, poor awarding in the Roads sector continued in 3QFY23 as well.
"Power (both, generation and T&D sub segments), Water supply, Irrigation and Railways remained the key sectors of growth.
Momentum in orders sustains
Power T&D,, it clocked at 30% and, hence, Dec-22 saw decent improvement," the brokerage has said.
Stocks from the engineering space that are top picks of Emkay Global
"We maintain our positive view on Larsen and Toubro (Target price: Rs 2,215 per share), KEC (Target price: Rs505 per share), KPTL (Target price:Rs 615 per share), ACE (Target price: Rs345 per share) and HG Infra (Target price: Rs 820).
per share Overall, driven by its strong tender pipeline softening commodity prices and expectation of good order inflow growth," the brokerage has said.
By Sunil Fernandes Goodreturns