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Best Manufacturing Stocks in India 2023

20 March 20236 mins read by Angel One
Looking to invest in the Indian manufacturing industry? These best manufacturing stocks have growth potential in India's rapidly developing manufacturing sector.
Best Manufacturing Stocks in India 2023
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The manufacturing industry is an integral part of any country’s economy, and India is no exception. India has been emerging as a global manufacturing hub, and this trend is expected to continue in 2023. The Indian manufacturing sector is expected to grow at a CAGR of 13.5% between 2021 and 2026, according to a report by ResearchAndMarkets. In this blog, we will be discussing the best manufacturing stocks in India for 2023.

List of Best Manufacturing Stocks in India 2023

Stock Current Market Price  Market Capitalisation P/E Ratio Dividend Yield
Tata Steel Rs. 1,274.75 Rs. 98,677 crore 15.45 0.0117
Bajaj Auto Rs. 4,532.05 Rs. 129,930 crore 21.61 0.0304
Larsen & Toubro Rs. 1,785.70 Rs. 233,882 crore 21.95 0.0104
Bharat Electronics Rs. 251.25 Rs. 22,308 crore 16.7 0.0267
Hindustan Unilever Rs. 2,763.50 Rs. 6,54,827 crore 74.02 0.0144

Note: The above list of top manufacturing stocks is as of March 5, 2023.

Tata Steel Limited

Tata Steel is one of the leading steel manufacturers in India and is a part of the Tata Group. The company has a production capacity of 33 million tonnes per annum and has a presence in more than 50 countries. Its revenue has been steadily growing over the past few years, and it has a healthy balance sheet with low debt levels. However, the steel industry is highly cyclical, and Tata Steel’s profits can be impacted by fluctuations in steel prices.

Bajaj Auto

In India’s two-wheeler market, Bajaj Auto is a significant player with a strong brand identity. It consistently produces great financial results, including significant revenue growth and a wholesome profit margin. The business is well-positioned to capitalise on the rising demand for high-end motorcycles in India thanks to its diverse product line.

Larsen & Toubro

Larsen & Toubro is a leading engineering and construction company in India, with operations in several countries. It has a strong track record of execution and has been expanding its business through strategic acquisitions. The company has a diversified business portfolio, including engineering, construction, electrical and automation, IT and technology services, and financial services. However, the company operates in a highly competitive industry, and delays in project execution can impact its financial performance.

Bharat Electronics

Bharat Electronics is a government-owned company that specializes in the manufacture of defense electronics. It has a strong order book and a healthy balance sheet with low debt levels. The company’s product portfolio includes radar systems, communication systems, missile systems, electronic warfare systems, and more. However, its financial performance can be impacted by delays in government orders and geopolitical risks.

Hindustan Unilever

A market leader in the Indian consumer goods industry, Hindustan Unilever has a strong portfolio of brands in the personal care and home care industries. The company offers a variety of food and beverages, personal care, and home care items. It consistently produces great financial performance and has a significant market share across a number of areas. Nonetheless, the company confronts competition from both domestic and foreign players in the consumer products sector, and its valuation is on the higher side.

Factors to consider before investing

Before investing in manufacturing stocks in India, investors should consider several factors. These include revenue and profit growth, industry trends, the competitive landscape, management quality, valuation, and dividend yield. A few things to note are:

  • Consistent revenue and profit growth are indicators of a company’s financial health, and investors should also look for companies that can weather challenging times.
  • Industry trends, such as growth in the electric vehicle industry, can present investment opportunities. Investors should also consider a company’s competitive advantage, management quality, and valuation, including the P/E ratio.
  • Dividend yield is also important, but investors should assess a company’s ability to continue paying dividends in the future.

By taking these factors into account, investors can make more informed decisions when investing in manufacturing stocks in India.


Manufacturing is a key sector of the Indian economy, and there are many companies that are well-positioned to take advantage of the country’s growth potential. The manufacturing stocks mentioned in this article are some of the best options for investors to consider in 2023. However, it is important to conduct thorough research and analysis before making any investment decisions.



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