Best Capital Goods Stocks in India 2024

Indian capital goods stocks are shares of companies engaged in activities like manufacturing and supplying machinery, equipment, and tools, which play a crucial role in the operation and expansion of various industries and sectors. Investing in Indian capital goods stocks in 2024 can be a good opportunity as they contribute to the country's economic growth. 

To invest in these companies, an investor needs to consider various factors. This blog will cover and address these factors by further covering some of the best capital goods stocks in India, understanding the features of capital goods share, advantages and more.

What are Capital Goods Stocks?

Capital goods stocks refer to the shares of organisations that manufacture and distribute equipment, tools and machinery. These stocks are linked to construction, technology, infrastructure, etc.

Capital goods are generally durable goods used in production and other goods or services. Companies that produce these goods or provide such services are called capital goods companies. 

Indian capital goods play an important role in the growth and development of the country’s economy. Investing in capital goods shares can provide you with exposure. However, it is important to research thoroughly before investing in this sector. This will help you to make wise investment decisions.

Top 10 Capital Goods Stocks List

The following is the breakdown of the capital goods stocks list, which includes data about market capitalisation and share price of the capital goods companies:

Disclaimer: This capital goods share list contains data updated as of 27th April 2024. However, it's important to conduct detailed research before making any investment decisions in these stocks.

Top Capital Goods Stocks: A Brief Overview

The above-mentioned stocks are some of the best capital goods stocks in India. Let’s learn more about their performance, future plans, market prices, and more

Capital Goods Sector in India

The capital goods stocks sector forms the backbone of major industries in India. Its products are used in everything from factories to construction sites to transportation. According to ticker tape, the capital goods and financial services sectors are expected to perform well in 2024.

Foreign Institutional Investors have been buying up these sectors heavily over the last year, amounting to over Rs. 1,00,000 crore in both industries combined. The government has already started long-term capital expenditures across main sectors, such as clean energy, railways, transmission, etc., until FY 2030. This provides a strong addressable market for capital goods companies.

The current emphasis on "Made in India" has increased the focus on manufacturing capabilities and raised awareness of the Indian capital goods industry. As of 2024, this sector contributes 12% of the total manufacturing output and around 17% to the country’s GDP. This increased optimism has been reflected in the stock price of the capital goods companies. 

Why Invest in Capital Goods Stocks?

Investing in capital goods stocks can be a wise decision because these companies are crucial in driving economic growth. For example, building a new highway requires construction elements, vehicles, and other relevant machinery, and capital goods companies supply these essentials. As the economy grows and development projects increase, the demand for capital goods ultimately rises, making this sector important in the country’s economic journey. 

As per the analysis of ticker tape, Companies like Hindustan Aeronautics, with an order book of over Rs 80,000, and Engineers India, whose orders have grown from Rs 1,500 crore to over Rs 4,500 crore in the past two years, show the strong demand for capital goods products. Investing in the best capital goods stocks can provide good exposure to investors and help them earn potential returns as the economy expands.

How to Invest in Capital Goods Stocks?

Investing in capital goods stocks can be a great option as it presents an opportunity for potential capital gains. The following are some effective ways to invest in capital goods stocks NSE:

Factors Affecting Capital Goods Stocks

Investing in capital goods stocks is not just about putting money in shares but also about understanding the aspects that shape the growth of these stocks. The following is the breakdown of some factors that affect the capital goods stocks:

Advantages & Risks of Investing in Capital Goods Stocks 

The following is the breakdown of the advantages and risks of investing in capital goods stocks:

Conclusion
Investing in the best capital goods stocks through a user-friendly stock market app can be a wise decision for investors seeking long-term growth opportunities. This sector is crucial in driving economic progress and benefits from infrastructure expansion and industrial development. However, investors should carefully evaluate technological advancements, economic conditions, and government policies that can impact the performance of capital goods shares. A diversified portfolio can help reduce risks associated with capital goods sector stocks.