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Engineering goods stocks: Engineering sector: Short-term headwinds, yes, but long-term story is intact: 5 engineering stocks with upside potential of up to 34%
Synopsis
Here’s a truism: Structural improvements in a sector are far more important for long-term investing than current market sentiment or short-term headwinds even if they are business headwinds. Now, there are several sectors that have seen structural improvements in the last few years, but are now facing short-term headwinds. This is not unusual as that’s how sectoral cycles play out. As investors, it is important to understand the reasons for the current headwinds, keeping in mind that these sectors have changed structurally, and for the good. It is structural changes which lead to sustained changes in the valuation given to a particular sector.
Before you read on, be clear about one thing: A number of companies on our list today have delivered less-than-expected Q1 earnings. Can this trend continue in the coming quarters? Surely, yes. But does it mean that the structural changes which have happened in the last 10 years do not matter? The answer is no. In volatile times such as these, it would be good to remember that investors could end up confusing the movement of the Nifty and Sensex
ETMarkets.com
Sep 01, 2025, 03:03:00 PM IST
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