Good days are back? 5 stocks from capital good and engineering sector with upside potential of up to 35%

Capital goods and engineering companies had faced tough times for many years. The reason, there was hardly any capex in many sectors of the Indian economy. This changed in 2014, when the new government took over. Road and infrastructure sector got a big push and all the companies in that sector saw their order book growing sharply. Over a period of nine years, many other sectors have seen a sharp increase in their capex. Right from railways to defence all of them have seen increased outlays leading to sharp improvement in the bottomline of the companies in the whole chain of companies. Given the capacity utilisation which some other sectors might see in near term, some more engineering and capital goods may come into focus.