Order outlook matters more than valuations in capital goods stocks, says AlfAccurate MD

Rajesh Kothari, Managing Director at AlfAccurate Advisors said investors should focus on the business cycle and visibility of fresh orders over the next three to four years rather than near-term earnings. He pointed to the strong opportunity in HVDC projects and said capital goods companies can continue generating returns if order inflows remain healthy. According to him, slowing orders, rather than expensive valuations, pose the bigger risk for the sector. Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.