Best Capital Goods Stocks in India for Investment in 2024| BlinkX

Best Capital Goods Stocks in India 2024

21 Aug 2024
3 mins read
By: BlinkX Research Team

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.

What are Capital Goods Stocks?
Top 10 Capital Goods Stocks List
Top Capital Goods Stocks: A Brief Overview
Capital Goods Sector in India
Why Invest in Capital Goods Stocks?
How to Invest in Capital Goods Stocks?
Factors Affecting Capital Goods Stocks
Advantages & Risks of Investing in Capital Goods Stocks

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:

Capital Goods Comapnies	Share Price (in INR)	Market Capitalisation (in Billion INR)
Cummins India Ltd	3,251.10	901.2
Polycab India Ltd	5,575.05	837.64
Mazagon Dock Shipbuilders Ltd	2,418	486.5
CG Power and Industrial Solutions Ltd	557.4	852.11
Larsen & Toubro Ltd	3,608	4,950
Havells India Ltd	1,643.10	1,030
APL Apollo Tubes Ltd	1,553.95	431.26
Astral Ltd	2,043	548.8
Bharat Heavy Electricals Ltd	278.2	970.8
ABB India Ltd	6,418	1,360

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.

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:

Advantages of Capital Goods Stocks	Risks of Capital Goods Stocks
Capital goods companies can experience revenue growth during expansion, which offers long-term growth opportunities to investors.	Capital goods stock prices can be volatile, which leads to market fluctuations.
Capital goods shares usually perform well during the economic recovery, which allows investors to increase capitalised demand for these products.	This sector is highly competitive, which may impact the growth potential and profitability.
Some established companies in this sector may share their profits with shareholders through dividend payments, which provides a source of regular income.	These stocks are subject to government regulations, which may create uncertainties and challenges in their operations, further affecting stock performance.

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.

FAQs on Capital Goods Stocks

Technological advancements, economic conditions, and government policies are some of the common factors that affect the capital goods sector stocks.

The advantages of the capital goods share list include revenue growth opportunities, economic recovery benefits, and potential dividend income.

You can research companies with consistent growth, positive earnings trends, and strong market presence. This will help you to find the best capital goods stocks

The capital goods sector contributes to manufacturing output and drives economic growth through infrastructure development.

Yes, investing in capital goods stocks can provide diversification benefits.

You can find information on the capital goods share list on financial websites, stock market apps, and company reports can provide details on capital goods stocks.