IDBI Capital assigns ’buy’ rating to four capital goods stocks

India is poised for substantial economic growth, aiming to become a $10 trillion economy within the next decade by adding $1 trillion every 1.5 years. The capital goods sector is expected to be a key driver of this expansion, a potential already recognized by the market in recent years due to significant capital expenditure (capex) initiatives supporting its growth. Government schemes like Gati Shakti, the National Infrastructure Pipeline, and Production Linked Incentive (PLI) schemes are driving infrastructure development and boosting manufacturing, which is forecasted to contribute 32 per cent to India's incremental GVA. Recognizing the opportunities in this multi-year capex cycle, domestic brokerage firm IDBI Capital has initiated coverage on four capital goods stocks including Ador Welding, Voltamp Transformers, Kirloskar Oil Engines, and Cummins India