Moneycontrol News
Until the June 2018 quarter, the market was excessively worried about the growth and margin pressure for defence engineering companies. However, the trend has now reversed with companies starting to report better numbers and hoping for the growth to continue.
The aggregate of eight companies in the defence sector saw a strong 17.65 percent spurt in sales in Q2FY19. Excluding Hindustan Aeronautics, this figure stood at 22 percent.
While the first half of the current financial year was good as most of the companies delivered strong performance, the second half could see a marginal slowdown on account of liquidity and execution.
Chaiti Narula does a 3 point analysis of the defence sector's Q2 performance, and also looks into how hardware manufacturers could perform in 2019, as a valuation rerating is long overdue.
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