Several infrastructure and capital-goods stocks are trading above their 10-year average PE multiple. Yet, most fund managers are comfortable investing in them because of the underlying growth visibility in these sectors.
India s Central Public Sector Enterprises (CPSEs) continued to bolster economic activity, exceeding the mandated procurement from Micro, Small, and Medium Enterprises (MSMEs) by 36.34% in the Financial Year 2024, surpassing the required 25%. In total, 54 CPSEs and five government departmental entities, including the Railways Board and the National Highways Authority of India, procured goods through Government e-marketplace (GeM), amounting to ₹2.62 lakh crore by March 31, 2024.
According to Pratik Jain, Partner and National Leader for Indirect Tax in PwC, UP’s focus on capital expenditure may be boosting its revenues, especially given roads and infrastructure construction involves GST levies on several levels such as contractors and cement.