Engineering Companies in India accounted for more than 25% of the exports of goods from India in 2021.
This depicts the importance of the engineering sector in the country and its growth. In this article, we are going to read about Best Engineering Stocks to buy in 2022.
Here you will read about the companies, their fundamentals, and other details which can help you choose which stock is best for your portfolio.
We will also discuss the opportunities in the engineering sector and ways to invest in these stocks and other crucial details.
Know about Engineering Sector in India
India is amongst the few countries where the export of the country is mainly constituted of engineering products and capital goods. The Top Engineering Companies in India are thus one of the best bets to pick.
As per reports, the demand for electrical and construction equipment is rising drastically. There is also huge potential in the infrastructure investment segment.
It is anticipated to rise by Rs. 50.2 trillion by the end of 2022. This is going to surge the demand for capital goods as well.
The government is also playing quite an important role in boosting this sector. It has proposed to grant Rs. 10 million for the MSMEs and that too within just 59 minutes if applied via an online portal.
Top 10 Engineering Stocks to Buy in India – List of Best Engineering Shares to Buy
If you are looking for Engineering and Manufacturing Shares to Buy in 2022, here are some of the top stocks that we have picked after a thorough analysis. We have ranked these stocks as per their market capitalization.
As per the rankings, as you can check in the table given above, the first stock to top the chart is Siemens. Then it is followed by ABB India and Honeywell Automation.
These three are the top three engineering and manufacturing companies in the country whose stocks you can invest in.
Best Engineering Shares in India also includes other companies’ stocks which will discuss individually in the next segment of the article.
Siemens – Best Manufacturing Stocks in India
Our first pick for the Best Manufacturing Stocks in India is Siemens. If you are looking for constant, not so volatile Engineering Shares to Buy then this is the company you can opt for.
Siemens is one of the largest engineering capital goods and industrial manufacturing companies which has its headquarters in Europe and offices across the world.
It was founded in 1847 in Germany. Siemens has multiple business verticals where it is involved in automation, intelligent systems solutions, healthcare, energy, and many other segments of businesses.
In India, its registered office is in Mumbai and other offices are spread across the country.
Why you should invest in Siemens stocks?
Siemens is undoubtedly the Best Engineering Shares in India, however, let us find out whether it can be a good fit for your investment portfolio or not –
- In the past year, it has returned 23.16% to the shareholders as the share price increased by this percentage.
- The TTM PE of the company which is 78.16 is higher than the sector PE of 73.65
- The Book Value Per Share is way too high at 290.83
- The Piotroski score of the company is quite high and growing which suggests strong fundamental analysis of the company and good management.
- The company provides good dividends as well and the dividend yield ratio is 0.35.
ABB India – Best Digital Technology Shares to Buy
The second Best Digital Technology shares to buy is ABB India. This company was established in the year 1949.
The business segments in which ABB India deals include digital technology, smart metering solutions, robotics, and many similar fields.
The company has branches all over the world and employees from across the globe. The company is mainly driven by finding sustainability solutions for future growth prospects.
ABB India Ltd. also deals in power systems, low voltage products, process automation and other similar products and solutions.
Why invest in ABB India’s stocks?
The prime reasons for investing in this engineering stock in India are as follows –
- Firstly, the investment criteria of CANSLIM are followed across the globe and this stock passes the majority of the criteria.
- Then the TTM PE of the company is higher than the sector which is a sign of excellent growth of the company in the future. The TTM PE is 87.97 while the sector PE is 56.70 as per the last annual report.
- The company has no debt which signifies the company is prudent enough to generate enough working capital and profit to run the core businesses.
- In recent years, the FIIs and the FPIs have been continuously increasing their shareholding in the firm. This signifies the importance and value of the company in the international market.
- The profits of the company have been increasing continuously for the past two years as well in every quarter. Even the profit market has also been increasing which depicts growth again.
- The dividend yield of the company is around 0.24 which is average in the market.
The share price of the firm increased by 47.89% in the past year, which is one of the highest in the sector.
Check out the list of best stocks to buy from other sectors
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Honeywell Automation – Top Engineering Sector Stocks to Buy
Our third pick for Top Engineering Sector Stocks to buy is Honeywell Automation India Ltd. (HAIL). This engineering company is one of the leading companies in automation and software solutions in the country.
The firm is involved in providing solutions for enhancing productivity, comfort, safety, and security of both the commercial and residential sectors.
However, that is not all, there are other products and services that Honeywell Automation offers as well like refining, oil and gas, power generation, transmission, and distribution, petrochemicals, minerals, metals, and even mining items.
Then there are pulp, paper, and printing business segments as well.
Why you should invest in Honeywell Automation India Ltd.’s stocks?
Let us check the fundamentals and this automation tech share price of the company to find out whether it is a good buy or not –
- The TTM EPS is way too high at 419.02 and similarly, the TTM PE is high at 94.69, which is also higher than the sector PE of 75.89.
- The dividend yield of the company is average and at par with the market. It has a dividend yield of 0.21.
- The book value per share of the company is also quite impressive and stands at 2916.77 as per the last reports.
- There is no debt in the financial structure of the company
- The FIIs and FPIs are increasing their shareholdings in the company as well which is a great sign of growth
- The cash flow of the company has been increasing over two years and that too from the core business activity
- The revenue of the company has been increasing over the past three quarters as well
- There is zero promoter pledge in the company.
- Honeywell Automation Stock predictions say that the stock prices will rise in the next few months.
Cummins India – Top Engineering Companies in India
Our fourth choice for Top Engineering Companies in India is Cummins India. CIL or Cummins India Ltd. is one of the leading producers of diesel engines in the country.
The firm is involved in the manufacturing, designing, and distribution of service engines and also other similar technologies and products.
Apart from diesel engines, the company is involved in the production of industrial engine business units, power generation, and other technologies like air handling, filtration, and others.
The sector where the company provides its services and products are mainly mining, construction, marine, rail, and other sectors.
Why you should invest in Cummins Ltd.’s stock?
There are multiple reasons for tracking and investing in this Future Technology Company Share Price –
- The company’s financial structure has a very low debt percentage. This is a big benefit for the shareholders.
- The profit margin has been increasing which is a huge sign of the growth of the company.
- The shareholding percentage of the FIIs and FPIs has also been increasing over years.
- The book value per share of the company has been improving over the last two years
- There is zero promoter pledge in the firm.
- Cummins Share Forecast suggests that it has very good future potential.
Thermax – Top Environment Tech Stock in India
Thermax is our 5th pick for Environment Engineering Company Share Price. This engineering firm is engaged in providing engineering solutions to different companies across sectors.
The services and products include heating, cooling solutions, captive power, waste management, waste heat recovery, recycling, and others. Then there are boilers, heaters of different nature are produced by the company as well.
The product range of this company is too wide as it includes hot water-driven chillers, steam-driven chillers, multi energy-driven chillers as well.
Apart from these, the company produces Tulsion which is a form of resin, and many other products and solutions.
Why you can invest in Thermax’s stocks?
The main reasons for investing in this Top Environment Tech Stock in India can be the following –
- The high dividend yield which is around 0.36
- TTM PE is around 72.87 which is higher than the sector PE of 53.41
- The cash flow statement of the company has been increasing significantly and mainly from the core business operations. This signifies the potential of the businesses done by the company
- There is Zero promoters pledge in this company
- The book value of the share has been improving as well for the past two years
- The revenue of the company has been increasing for the past two years as well.
Bharat Heavy Electricals Ltd. (BHEL) – Top 10 Engineering Stocks
BHEL or Bharat Heavy Electricals Ltd. is our 6th choice out of the Top 10 Engineering Stocks. This is a well-known name by people of India whether they invest in stocks or not.
This company is the country’s biggest engineering and manufacturing organization in the field of energy and related segment.
The company also caters to the infrastructure segment. While this enterprise is known for electrical and engineering products but it has other products and services that it renders as well.
It is involved in fertilizers manufacturing, petrochemicals, oil exploration, metals, cement, sugar, transportation products, and many more.
Why you can invest in BHEL’s stocks?
The primary factors which we found for investing in this Engineering Company Share Price are –
- The financial structure has a very low amount of debt in it.
- Then increasing profits over years and the past quarters, especially which you must consider
- The cash flow from the core business activities has been increasing for the past two years which is another sign of growth and business prosperity.
- The revenue has been also increasing so is the profit
- The company has zero promoters pledge
- The company has a strong balance sheet which attracts all types of Investors.
Timken India – Best Manufacturing Stocks to buy
As per our rankings, the 7th Best Manufacturing Stocks to buy is Timken India Ltd. This Manufacturing Shares in India provided a return of around 75% in the past year to the investors.
This company is engaged in the manufacturing of antifriction bearings, related parts, and components.
The company also imports and exports the products. Apart from selling and manufacturing the products, Timken India Ltd. also provides certain solutions and services in the related field of anti-friction technology.
Why you can invest in Timken India Ltd.’s shares?
The major reasons for investing in Timken India Ltd. could be the following –
- The company has kept its financial structure almost debt-free. The percentage of debt in the financial structure of the company is comparatively lower than many other companies in the same field.
- The TTM EPS of the company has been growing and it’s quite high as to the share market.
- The TTM PE is also higher than the sectoral PE of 56.85.
- The foreign investors and institutional investors are also investing in the company quite a lot.
As per the technical analysis, the momentum of the stock has been really high and moving upward.
AIA Engineering – Top Engineering Stocks to Buy
The 8th Top Engineering Stocks to buy as per our findings is AIA Engineering.
This engineering and manufacturing enterprise is involved in making designs, installations, manufacturing, development, and servicing of different parts which are corrosion and abrasion resistant made of high chromium.
They render their services and sell products in the cement, thermal, and mining industries. The enterprise is involved in producing vertical mills spares, mining liners and other similar products.
Why invest in AIA Engineering Ltd.’s stocks?
The factors which you need to consider for investing in this Manufacturing Company in India are –
- Its low debt profile in its financial structure
- The increasing shareholding by FII and FPI
- AIA Engineering has a Zero Promoters pledge
- The net profit of the company has been increasing and not only that, the percentage of profit or profit margin has also been improving which is a great sign of growth.
- The TTM EPS is also high and the book value per share has been improving too.
Lakshmi Machine Works – Best Machine Company in India
Lakshmi Machine Works Ltd. is our pick as the 9th Best Machine Company in India. This company was founded in the year 1962 and at present it is a global player in the manufacturing and engineering world.
The company produces a wide range of machines for the textile industry primarily. Apart from these, there are other products which this company manufactures as well.
It is present in different nations in the world across Europe, Asia, and other countries as well.
Why invest in Lakshmi Machine Works Ltd.’s shares?
The reasons for which we have chosen these Machine Stocks to buy are –
- The net cash flow of the company has been increasing and that is from operating activities mainly.
- TTM EPS has been high and still growing. As per recent data, it is 116.42
- The TTM PE is way higher than the sectoral PE. The sectoral PE is 24.6 while the company’s TTM PE is 82.62. This indicates that the company’s share price can grow exponentially. It has already increased by 45.18% in the past twelve months.
- The Foreign institutional investors are increasing their shareholding in this firm which is an added sign of growth and potential.
- There is Zero promoters pledge in the firm.
Praj Industries – Top 10 Engineering Shares to buy
Our 10th pick for the Top 10 Engineering Shares to buy is Praj Industries Ltd. It is one of the top biofuel technology companies in the country.
This company mainly helps in producing and supplying ethanol and biodiesel with the help of different technical systems and processes.
The company integrates automation to help biofuel companies achieve higher production levels at lower costs.
Why invest in Praj Engineering Ltd.’s stocks?
The primary reasons for investing in this stock and Manufacturing Shares to buy are –
- The company’s net cash flow has been increasing from the operating activities.
- Revenue of the company has been also increasing for the past two quarters
- The annual net profit and also the profit margin has been growing which is good for investment
- Then the TTM EPS is increasing as well.
- Then there is low debt in the financial structure of the company
- The FII and the FPIs are increasing their shareholding in the company
GMM Pfaudler – Engineering Sector Stocks to Buy
GMM Pfaudler is the largest producer of glass-lined products in India and thus it is our 11th pick for Engineering Sector Stocks to buy.
This company produces wiped film evaporators, Hi efficiency mixing systems, agitated Nutche filters, and many other such products. In a year, the share has grown by 6.47% and the profits are also growing.
The cash flow from operations has been increasing which indicates the growth of the company. the foreign investors are taking interest in this company and increasing their shareholding as well.
The TTM PE which signifies the potential rise in the price of the share of the company is way higher than the sectoral PE of 24.60. The TTM PE is 91.02 for this firm.
BEML – Engineering Companies Stock to Buy
BEML is the 12th Engineering Companies stock to buy as per our research. This is a public sector undertaking organization that manufactures rail coaches and other parts and mining equipment.
It is a multi-technology company that offers efficient and durable products for different sectors such as coal, steel, mining, power, irrigation, and other primary sectors of the country.
In the last twelve months, the share price of BEML rose by 10.99%. Y
ou can consider this stock as well for investment in the engineering sector as the company has a low debt percentage, growing net profit and profit margin, growing TTM EPS, and other factors as well.
Triveni Turbine Ltd. – Manufacturing Companies Shares to Buy
Triveni Turbine Ltd. produces steam turbines and it is our 13th pick for Manufacturing Companies Shares to buy in India.
The firm produces condensing and backpressure steam turbines of power up to 30 megawatts. It has installation facilities in more than thirty countries. The share price of the company increased by 93.27% in the past year.
The prime reasons for investing in this stock could be its growing TTM EPS, no debt in the financial structure, zero promoters pledge, improving book value per share, and growing shareholding of FIIs.
Sterling and Wilson – Best Engineering Company in India
Sterling and Wilson Renewable Energy Ltd. is the 14th best Engineering Company in India as per our findings and market capitalization.
The price of this company grew by 18.36% in the past year. This company deals in producing different forms of renewable energies for a sustainable future.
Some of the reasons for which we picked this stock are its growing share price, promoters are increasing shareholding, the revenue is increasing for the past few quarters, and also the promoters’ pledge is decreasing.
Greaves Cotton – Manufacturing Stocks in India
Greaves Cotton is our final pick for the Manufacturing Stocks in India which you can buy for investment purposes.
This is a well-known engineering company mainly engaged in the production of petrol and diesel engines, agro equipment, lightweight engine, construction equipment, and aero engines as well.
There are 6 manufacturing units of the company across the state of Maharashtra and Tamil Nadu. The share price of the company increased by 35.42% in a year which is a significant rise.
There is zero promoter pledge in the company and increasing FII investments are the main signs of growth of the company.
How to find Engineering Stocks for Trading?
While engineering stocks can provide you with a decent return on your investment, the main factor here is to find the right stock.
To Trade in Engineering Stocks, you need to first check whether the company produces multiple products or provides a different range of services or similar kinds of products and services.
Then you need to check the financials of the company. For short-term investment or trading purposes, you need to also check the technical factors like momentum, price trend, and others.
Then you should check and compare the financials of the company and compare with its peers and the sector as well for understanding how the company has been performing.
How to Invest in Engineering Sectors Stocks?
It is easy to Invest in Engineering Stocks, all you need to do is –
- firstly, open a Demat account and trading account with a brokerage house
- Then do your homework of finding the right stocks
- Check the right time and then buy the shares.
- Then you can hold the shares for as long as you want or achieve the target price.
Top Engineering Companies in India – Conclusion
Top Engineering companies in India provide stable and decent returns. If you are looking for long-term investment then these stocks can be the right fit for your portfolio.
With a low-risk profile and decent returns, engineering sector stocks are one of the best buys for many retail investors.
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