Mehraboon Irani negative on capital goods space

Mehraboon Irani of Nirmal Bang Securities is negative on capital goods space.

Irani told CNBC-TV18, "The view remains negative as far as capital goods sector goes. So in a scenario, where there is a clear cut slowdown and there is not much of capital spending happening be it by the government or be it by the private sector, I think venturing your money on capital goods stocks is not the best solution."
He further added, "The stocks have come down very sharply. I think the entire capital goods space will come down sharply but there are some very expensive stocks, maybe like a Siemens which is still going at 35 PE and having its own problems right now in the company. So of you compare it on a relative basis L&T now looks a little bit attractive, not disputing it but still not tempted to buy. L&T and BHEL - both look outstanding but considering the fact that things are not going to improve for the sector, till that time capital expenditure starts happening. I don