Decline in order inflow at L&T does not augur well for capital goods sector

Investor focus has shifted away from the capital goods sectors, with Larsen & Toubro (L&T) seeing new order inflow slump 39 per cent year-on-year (YoY) during the June quarter (Q1) to Rs 23,574 crore — a 13-quarter low.  It paints a grim picture for the sector, despite the bellwether beating Street estimates. Looking at the decline in fresh investments, capital expenditure (capex), and deferment of order awards due to the lockdown, a decline in new orders was anticipated.  Analysts at Motilal Oswal Securities (MOSL) had projected order inflows of Rs 20,000 cro.....

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