When most businesses in India are focused on surviving Covid-19, it is a good time to invert the situation and think about companies that are still managing to proceed with their CapEx plans.
Companies that can invest in CapEx today get better bargains as prices are depressed due to low economic activity, creating a sustainable advantage for them over time.
Investopedia defines Capex as follows:
Capital expenditures, commonly known as CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, an industrial plant, technology, or equipment. CapEx is often used to undertake new projects or investments by the firm. Making capital expenditures on fixed assets can include everything from repairing a roof to building, to purchasing a piece of equipment, to building a brand new factory. This type of financial outlay is also made by companies to maintain or increase the scope of their operations. Put differently, CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.