Early signs of recovery for capital goods companies

Edelweiss in a note dated May 15 says that the recovery in capex is pretty broad

In February, when most capital goods companies showed improved capacity utilisation, it was seen  as an early sign of turnaround in the sector. That belief has strengthened, thanks to a strong March quarter performance by ABB India and Siemens India. Even as their net profits took a hit due to changes in accounting norms, the key takeaway was eye-grabbing growth in order inflows. For ABB India, the 28 per cent year-on-year growth in order inflows came from the power transmission and distribution (T&D) segment, while pockets such as renewable energy and railways also supported it. Similarly case entails for Siemens