Capital Goods - Electrical Equipment Stocks

The capital goods industry is one of the most essential requirements for the manufacturing sector’s competitiveness and growth. The companies in this sector are into the making of machinery used to manufacture goods and products. The capital goods industry contains five primary segments: electrical equipment, process plant equipment, machine tools and textile machinery, earth moving, construction, and mining machinery.

The electrical equipment segment in the capital goods sector has four core manufacturing processes, i.e., raw materials production, product design, component manufacturing and product assembly.

The largest sub-sector in the capital goods sector is electrical equipment, followed by plant equipment and Earth moving/mining machinery. The sector’s growth, reflecting advancements in the power industry, sustained investments, and government support for further development, is evident.

In FY 2021-22, the electrical equipment industry witnessed a V-shaped recovery, recording a significant 17% growth compared to the pandemic-affected FY 2020-21. The industry, encompassing generation and Transmission & Distribution (T&D) equipment, is poised to reach a substantial size of $100 billion by 2025, with the T&D equipment segment specifically targeting $75 billion by the same year.

• Overview of the industry: Examine the current state of the electrical equipment industry, including recent growth trends, major players, and any notable technological advancements.
• Market demand: Assess the demand for electrical equipment. You must check both domestic and global demand for the sector’s products. Consider factors such as infrastructure development, government initiatives, and global economic conditions of the sector.
• Regulatory environment: Understand the regulatory landscape governing the sector, as changes in regulations can significantly impact the performance of companies in the electrical equipment segment.
• Technology and innovation: Stay informed about market trends, especially those related to renewable energy, smart technology integration, and advancements in power infrastructure. This must be followed by an understanding of the level of technological innovation within companies, as those embracing new technologies are likely to be more competitive and resilient in the long run.
• Political risks: Be aware of potential risks and challenges the sector faces, such as supply chain disruptions, geopolitical issues, or any adverse changes in economic conditions.
• Environmental and social impact: Consider the environmental and social impact of the sector. Increasing awareness of sustainability and corporate responsibility can influence consumer choices and regulatory decisions.

Investing in capital goods – electrical equipment stocks via Angel One is easy. Simply follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired capital goods – electrical equipment stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

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