ENGINEERING / CAPITAL GOODS STOCKS - A GOOD OPPORTUNITY

Even if it is exhibiting the tendency of cyclical nature,Engineering and Capital goods industry is the back bone of any growing economy . In our country most of the companies operating in this sector is currently facing serious challenges due to lower order book position and delay in execution .Reasons are many like slowness in implementing government  policies,intervention of courts,shortage of power,higher interest rate ..etc ..etc.Even in the past, this industry faces these type hiccups many times and later came out of such bad situations.Most of the listed companies from this space  are long existing in the same industry and the management of such companies already experienced many such ups and downs.Share price of many companies are now ruling at attractive valuations for genuine long term investors.Negative sentiment is surrounding this industry and everyone is in a hurry to dispose even quality stocks from this sector at throw away price, thinking there is no tomorrow .Considering the volatility and panic gripped in the mid/small caps one can't say they will not go down further .But in practical it is very difficult to catch everything at bottom and no meaning in waiting for that .One strategy we can adopt in such a situation is - accumulating small lots of quality stocks in a phased manner and thus keep our average at reasonable level.Such a method will help us to reap the benefits when the industry starts its come back and at the same time avoid the possibility of sleeplessness during testing times.Waiting with patience may be longer but the reward will be equally big.
TRF @ Rs.167,TIL @ Rs.160,InternationalCombustion @ Rs.167 ,Tecpro Systems @ Rs.109 ,CMI FPE @ Rs.475,Eimco Elecon @ Rs.153 ,Ingersoll Rand @ Rs.400 ..etc are some stocks falling in this category. One thing is very important- no meaning in looking at the trading screen from the very next day onwards after the purchasing these stocks .I believe it is the time to become greedy in this sector and not fearful.