Certain segments like automation/energy efficiency motors continues to grow irrespective of end-market weakness – Certain segments like automation have displayed healthy growth over the past few years even during a weak capex cycle.
ABB, SIEM score high in terms of end market diversity – ABB, SIEM score high over other players in terms of end market diversity, granularity of orders and end-sector outlook. Whereas, BHEL and TMX score lower in the ranking in this parameter.
Potential for increased exports exists for ABB and SIEM, similar to Honeywell - Honeywell Automation (HWN) has increased the share of its exports revenue from 32% in FY14 to ~45% in FY19, while that of ABB and SIEM is lower at 13% and 18% respectively.
Views and top picks - Given the current backdrop of continued weakness in the capex cycle, The preferable companies which can grow inspite of an absence of a capex momentum, with a wide end-market diversity and who are favorably placed in a better pricing environment which points towards ABB and SIEM as favourable bets.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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