Engineering sector- a growing market

Indian Engineering sector has witnessed a remarkable growth in the last few years. This growth is mainly driven by boost in infrastructure and industrial production. The engineering sector in India is attracting immense interest from foreign players as it enjoys a comparative advantage in terms of manufacturing costs, technology and innovation. Since FY10, cumulative FDI inflow also has increased threefold. It increased to USD 26.3 billion in FY16 from USD 8.9 billion in FY10. India exports its engineering goods mostly to the US and Europe, which accounts for over 60 per cent of the total exports.

As Engineering sector is a growing market, it has caught our attention. We have analysed 28 Engineering sector companies in terms of their returns over the last one year. We have analysed that companies from this sector are gaining momentum in recent times. 21 companies have performed negatively among 28, in the last one year. Many out of the 21 (like Engineers India, Jay Bharat Maruti, Autoline Industry etc.), are on a  growth trajectory now.

We have picked up our top five performers from the Engineering sector on the basis of last one-year's performance.



Our top five performers are- Amba Enterprises (284 per cent); Alphageo (India) (110 per cent); Akar Tools (54 per cent); Artech Power & Trading (28 per cent); and Mazda (12 per cent). These companies have filled the pockets of the investors. We can sense the huge difference of returns between Amba Enterprises and Mazda. As we have said, the Engineering sector is picking up pace now, and we will have to wait and watch to see a further rise in return numbers in the near term.