Siemens Energy India and CG Power show strong profit and sales momentum.
Polycab India and Waaree Energies are emerging stars in electricals and renewables.
GE Vernova T&D posts high efficiency with strong ROCE, standing out in capital goods.
The capital goods sector in India has been one of the strongest pillars of industrial growth. With rising government spending on infrastructure, manufacturing, and defense, capital goods companies are witnessing renewed momentum. Investors are keenly watching this sector for the long term as it reflects the health of industrial demand and future expansion in the economy.
Let’s take a look at some of the best capital goods stocks in India based on their market performance, profitability, and business outlook.
Hindustan Aeronautics Limited (HAL) is a major player in India’s defense manufacturing sector. With a current market price (CMP) of Rs. 4,885.90 and a market capitalization of Rs. 3,26,756.77 crore, it stands as one of the most valuable companies in the capital goods sector. The stock trades at a P/E ratio of 39.34 and provides a dividend yield of 0.81%.
For the latest quarter, HAL reported a net profit of Rs. 1,383.77 crore on sales of Rs. 4,819.01 crore. While its quarterly gains fell by 3.71%, sales grew 10.85% year-on-year. The return on capital employed (ROCE) is at a healthy 33.88%, showing efficient use of capital. With strong defense orders and government support for indigenous production, HAL remains one of the best capital goods stocks in India.
Bharat Electronics is another state-owned enterprise that plays a crucial role in defense and electronic manufacturing. The stock trades at Rs. 412.30 with a market cap of Rs. 3,01,382.17 crore. Its P/E ratio is 54.78, and the dividend yield stands at 0.58%.
The company posted a net profit of Rs. 969.05 crore, showing a growth of 22.62% compared to the previous quarter. Sales reached Rs. 4,439.74 crore, a rise of 4.62%. With a ROCE of 38.88%, Bharat Electronics is highly profitable and efficient. This makes it one of the best capital goods stocks with strong growth potential driven by defense modernization and increasing demand for electronic systems.
Siemens Energy India is among the top private sector players in industrial and energy solutions. The CMP is Rs. 3,530 with a market capitalization of Rs. 1,25,710.54 crore. Its P/E ratio is relatively high at 307.57, showing that investors are paying a premium for the stock’s growth potential.
In the latest quarter, the company posted a net profit of Rs. 262.70 crore, up by 80.18%. Sales stood at Rs. 1,784.60 crore with a growth of 20.24%. Siemens Energy India’s strong sales momentum highlights demand in the power and industrial solutions segment, making it a leading choice among capital goods stocks in India.
CG Power is gaining investor attention with a CMP of Rs. 788.70 and a market cap of Rs. 1,24,195.09 crore. The stock trades at a P/E of 123.86 and has a small dividend yield of 0.16%.
The company recorded a quarterly net profit of Rs. 266.87 crore, rising 11.65% from the previous period. Sales touched Rs. 2,878.05 crore, up 29.20%. With a ROCE of 37.48%, CG Power shows efficiency and resilience in the capital goods sector. The focus on power equipment and industrial products makes it a strong contender among the best capital goods stocks in India.
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Mazagon Dock, a public sector shipbuilding company, trades at Rs. 3,011 with a market cap of Rs. 1,21,457.71 crore. Its P/E is 55.98 and dividend yield is 0.58%.
The company’s net profit was Rs. 452.15 crore, though it fell 35.05% from the last quarter. Sales stood at Rs. 2,625.59 crore, up 11.39% year-on-year. Despite the profit decline, Mazagon Dock has a strong ROCE of 43.19%, reflecting robust capital utilization. With increasing naval defense orders, Mazagon Dock continues to remain one of the best capital goods stocks to track.
Siemens India is one of the largest multinational players in the sector. The stock is priced at Rs. 3,302.70 with a market cap of Rs. 1,17,615.91 crore. Its P/E ratio is 68.20, and dividend yield is 0.36%.
Quarterly profit came in at Rs. 423.40 crore, down by 3.16%. Sales stood at Rs. 4,346.80 crore, growing 15.53%. The company maintains a ROCE of 23.61%. With a strong portfolio across energy, automation, and smart infrastructure, Siemens India remains a leading name among capital goods stocks.
ABB is a global leader in automation and electrification. The stock trades at Rs. 5,426.75 with a market capitalization of Rs. 1,14,997.38 crore. Its P/E ratio is 63.96 and dividend yield is 0.82%.
In the last quarter, ABB reported a net profit of Rs. 351.74 crore, down 20.46% from the previous period. Sales were at Rs. 3,175.44 crore, showing a growth of 12.17%. The company’s ROCE of 38.65% shows operational strength. ABB’s technological edge and innovation make it a strong part of the best capital goods stocks in India.
Cummins India is a key player in engine and power solutions. With a CMP of Rs. 4,136.10 and a market capitalization of Rs. 1,14,652.71 crore, the stock trades at a P/E of 53.80. The dividend yield stands at 1.25%.
Quarterly net profit was Rs. 603.90 crore, growing 28.45%. Sales were Rs. 2,906.82 crore, up 25.53%. The company’s ROCE is 36.32%, highlighting efficient operations. Cummins India is well-positioned in the capital goods stocks segment, backed by global expertise and rising domestic demand.
Polycab India has emerged as a major manufacturer of wires, cables, and related electrical solutions. The stock trades at Rs. 7,372 with a market cap of Rs. 1,10,970.67 crore. Its P/E ratio is 50.08 and dividend yield is 0.48%.
In the recent quarter, Polycab posted a net profit of Rs. 599.70 crore, a strong 49.54% growth. Sales touched Rs. 5,905.98 crore, rising 25.71%. With a ROCE of 29.72%, Polycab demonstrates strong financial health. The stock’s growing presence makes it a rising star among the best capital goods stocks.
Waaree Energies is a fast-growing company in the renewable energy space. The CMP is Rs. 3,598.05, and the market cap stands at Rs. 1,03,365.91 crore. The stock trades at a P/E of 46.54 and does not currently pay dividends.
Quarterly profit was Rs. 772.89 crore, up a massive 89.07%. Sales were at Rs. 4,425.83 crore, with growth of 29.83%. ROCE stands at 34.94%. With India’s push towards renewable energy, Waaree Energies is one of the best capital goods stocks in India to watch.
Hitachi Energy is another strong player with a CMP of Rs. 19,976.80 and a market cap of Rs. 89,041.33 crore. Its P/E is 176.27 and dividend yield is 0.03%.
The company reported a net profit of Rs. 131.60 crore, a huge growth of 1162.96%. Sales stood at Rs. 1,478.90 crore, up 11.43%. While the ROCE is 19.44%, the surge in profitability makes it an exciting capital goods stock in India.
BHEL is a large public sector undertaking in the capital goods sector. The CMP is Rs. 235.60, and the market cap is Rs. 82,037.40 crore. Its P/E ratio is 283.08 with a dividend yield of 0.21%.
The company reported a quarterly loss of Rs. 455.50 crore, with profits falling 115.47%. Sales stood at Rs. 5,486.91 crore with minimal growth. ROCE is low at 4.87%, showing weak efficiency. While BHEL is a historic name in the sector, it faces challenges and competition, making it a cautious pick among capital goods stocks.
Suzlon Energy, with a CMP of Rs. 59.60 and market capitalization of Rs. 81,045.96 crore, trades at a P/E of 38.69. The company does not pay dividends currently.
Quarterly profit was Rs. 324.32 crore, up 7.29%. Sales touched Rs. 3,131.72 crore, growing 54.91%. ROCE stands at 32.52%. With a strong focus on wind energy, Suzlon is making a comeback as one of the most promising capital goods stocks in India.
Ashok Leyland is one of India’s leading automobile and commercial vehicle manufacturers. The CMP is Rs. 136.55 with a market capitalization of Rs. 80,196.56 crore. Its P/E ratio is 25.11 and dividend yield is 2.30%.
Quarterly profit was Rs. 657.72 crore, rising 20.67%. Sales stood at Rs. 11,708.54 crore, with a growth of 9.18%. However, the ROCE is 14.26%, which is lower compared to peers. Still, as a key industrial and commercial vehicle manufacturer, Ashok Leyland remains relevant in the capital goods stocks segment.
GE Vernova T&D is a major transmission and distribution company. The CMP is Rs. 2,955.05, and the market capitalization is Rs. 75,664.05 crore. Its P/E is 98.91 and dividend yield is 0.17%.
The company reported a net profit of Rs. 291.20 crore, up 116.44%. Sales were at Rs. 1,330.13 crore, rising 38.80%. With a ROCE of 54.74%, GE Vernova T&D is one of the most efficient companies in the sector. It stands out as one of the best capital goods stocks in India for 2025.
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The capital goods sector is closely linked to the growth of infrastructure, defense, energy, and manufacturing in India. Companies like Hindustan Aeronautics, Bharat Electronics, Siemens, ABB, Polycab, Waaree Energies, and GE Vernova T&D are showing strong performance and have established themselves as leaders.
Investors tracking the best capital goods stocks can consider these companies for their consistent growth, innovation, and contribution to India’s industrial expansion.
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