India’s growth in modern times is a product of several factors and industries have been one of the crucial parts of it. In the three-tier levels, the secondary level consists of different industries. The industrial sector has contributed significantly, and its growth of 9.5% in FY 2024 is evident in this contribution.
Due to government efforts like ‘Make in India’, the industrial sector, and specifically, manufacturing companies may observe significant growth in the upcoming years. Investors can become a part of this growth story with the help of stock market investment.
We have curated a list of top industrial stocks, which may brighten up your portfolio or provide you with a long-term outlook.
An interesting read: Manufacturing mutual funds: A good bet or hype?
Top 10 industrial stocks in India
In India, the industrial sector stocks have significant market capitalisation due to their reach. Moreover, it is an umbrella with different sectors. Here are the top industrial stocks in India ranked according to their market capitalisation from higher to lower.
(as of November 26, 2024)
- Share price: ₹243.97
- Market capitalisation: ₹84,986 crores
The public sector entity designs and manufactures the tools and machinery for the core sectors of the economy. It is one of the leading entities and is anticipating 23% to 25% revenue growth in FY 2025.
(as of November 26, 2024)
- Share price: ₹4,633.95
- Market capitalisation: ₹55,221 crores
It is mainly engaged in the production of boilers, recycling plants, heat pumps, etc. Moreover, due to its recent acquisition in October 2024, it entered the construction chemical sector. Thermax Ltd industrial products contributed nearly 40% of its revenue in FY25.
(as of November 26, 2024)
- Share price: ₹3,490.2
- Market capitalisation: ₹32,923 crores
It manufactures specialised machines like grinders and liners for some industries. It also offers turnkey project specialisations and has production capacity in 4 main cities in India. Its revenue declined in FY 2024, but it was successful in increasing the profit margins.
(as of November 26, 2024)
- Share price: ₹823.9
- Market capitalisation: ₹26,191 crores
Its main operation is in the manufacturing of turbines with different ranges. Its financials are evidence of its robust growth trajectory and investors may find it attractive. Moreover, the stock is near its yearly high.
- Kirlosar Brothers Ltd
(as of November 26, 2024)
- Share price: ₹2228.4
- Market capitalisation: ₹17,695 crores
Its product portfolio includes infrastructure projects, turbines, motors, pumps, etc. It has a strong client network, including some global industry-leading companies. The company is actively working towards reducing its debt obligations.
- Bharat Earth Movers Ltd (BEML)
(as of November 26, 2024)
- Share price: ₹4,015.25
- Market capitalisation: ₹16,719 crores
It manufactures vehicles for the defence sector and construction. Moreover, it designs coaches for Indian railways. Post-pandemic, the company’s profits have been constantly growing, and its stock has also surged significantly.
- Kirloskar Oil Engines Ltd.
(as of November 26, 2024)
- Share price: ₹1,109.05
- Market capitalisation: ₹16,086 crores
Its focus is on manufacturing diesel engines and generators, and it has manufacturing plants in 8 cities. They play a significant role in the automotive industry. The company’s profits are on a positive trend, and its share price has surged notably in the past year.
(as of November 26, 2024)
- Share price: ₹1,260.85
- Market capitalisation: ₹15,017 crores
The company was established in 1995 and is manufactures cranes, loaders, graders and other construction transport vehicles. Its overall market share is significant and may be beneficial for its future lined-up projects.
Check this out! Top Construction Stocks to Invest in India
(as of November 26, 2024)
- Share price: ₹802.85
- Market capitalisation: ₹14,757 crores
It provides solutions for breweries and water management techniques. The company has global exposure in countries like Thailand. Moreover, its share price is near its yearly high.
(as of November 26, 2024)
- Share price: ₹834.15
- Market capitalisation: ₹14,519 crores
It mainly focuses on the agricultural and oil-gas sectors machinery manufacturing, and is almost a debt-free company. Moreover, its operating cash flow has hiked significantly in 2023, which may support its future projects.
Comparative analysis
| Particulars | Revenue (₹ crore) | Net profit margin | Return on Equity (ROE) | Networth(₹ crore) | P/E ratio* (in times) |
| BHEL | 25,833.1 | 1.2% | 1.1% | 24,198.9 | 192.7 |
| Thermax Ltd | 9,884.0 | 6.3% | 14.1% | 4,619.9 | 86.9 |
| AIA Engg. Ltd | 4,383.5 | 23.3% | 18.3% | 6,399.6 | 30.8 |
| Triveni Turbines | 1,854.1 | 14.8% | 28.5% | 1,089.9 | 85.0 |
| Kirloskar Bros. Ltd | 4,255.3 | 8.5% | 21.6% | 1,853.1 | 46.5 |
| BEML | 4,054.5 | 6.9% | 11.0% | 2,699.3 | 60.4 |
| Kirloskar Oil Ltd | 6,185.9 | 7.4% | 17.7% | 2,914.4 | 31.9 |
| Action Cons. Ltd | 3,079.7 | 11.2% | 30.3% | 1,383.6 | 41.6 |
| Praj Industries Ltd | 3,362.5 | 7.9% | 23.3% | 1,299.4 | 52.7 |
| KSB Ltd | 2,409.3 | 9.2% | 17.1% | 1,351 | 64.1 |
*P/E ratio: Price to Earning
Summary
Adding the top 10 industrial stocks in India to your portfolio may provide the required diversification. However, investment decisions can be sensitive and demand an overall analysis.
Also, read India’s billion-dollar infrastructure industry: How to invest in it?
FAQs
- What affects industrial stock’s price movement?
Along with regular factors of market demand and supply, industrial sector stocks are prone to changes in the economic cycle of their specific products or the raw materials. Moreover, the changes in technological aids or major decisions in government policies may also be reflected in their prices.
- Why should investors prefer industrial stocks?
Investing in different sectors can potentially provide exposure benefits regarding different sectors. Investing in industrial sectors should be preceded by understanding the current economic conditions in the country. Moreover, industrial stocks can be beneficial in developing countries, where industries are emphasised.
- What is the future growth trajectory for the manufacturing industry in India?
Specifically, the manufacturing industry contributes 14% to the national GDP. In the upcoming years, the growth trajectory of this industry may be positive due to government support and corporate bullish sentiment. Programs like ‘Make in India’ may provide the required push. By 2030, the industry’s exports may soar nearly to US$1 trillion.
- Is BHEL stock overvalued?
Overvaluation or undervaluation of the stocks may depend on the valuation metrics preferred by the investors. Based on its sectoral P/E, BHEL seems to be overvalued but its robust financial growth may change the notion through intrinsic valuation. Therefore, investors should seek a holistic view before investing.
- What are industrial products manufactured by Thermax?
The company is mainly operating in the production of boilers, solar equipment, heat pumps, recycler plants, etc. Its 10 units are domestic, while 4 are located outside India. Apart from this, due to a recent acquisition by the company in October 2024, it has entered the construction chemicals industry.
