3 Forging Stocks in India Riding Auto and Defence Export Growth in 2026

Bharat Forge at Rs 2,030.80. Ramkrishna Forgings at Rs 739. Sundram Fasteners at Rs 1,225.65. India forging exports cross $2 billion.

Forging stocks in India benefit from the same tailwinds as auto ancillary stocks, but with an important additional dimension: defence exports. Bharat Forge has built a significant defence components business that provides revenue diversification beyond the automotive cycle. India’s forging exports have crossed $2 billion annually, driven by global OEM supply chain diversification away from China.

For investors in forging stocks in India, the key metrics are OEM production volumes, export order books, and the proportion of defence and non-automotive revenue in the mix, which moderates cyclicality.

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Top 3 Forging Stocks Stocks in India (August 2026)

Company	CMP (Rs)	Market Cap (Rs Cr)	PE Ratio	ROE (%)	D/E	Div Yield (%)
Bharat Forge	2,030.80	98,534	137.68	11.27	0.76	0.41
Ramkrishna Forgings	739.00	13,572	126.92	2.46	0.74	0.13
Sundram Fasteners	1,225.65	25,801	42.05	13.83	0.15	0.65

Data as of 21 August 2026. Sourced from publicly available NSE and BSE filings.

Bharat Forge: The Global Forging Leader and Defence Diversified Stock

Bharat Forge is India’s largest forging company and one of the world’s top three automotive component forgers, serving OEMs in North America, Europe, and Asia. Market cap Rs 98,534 crore, PE 137.68, ROE 11.27%, D/E 0.76, EPS Rs 14.97. Bharat Forge has diversified into aerospace forgings, defence systems, and industrial energy equipment, reducing its pure automotive dependence.

Among forging stocks in India, Bharat Forge has the most defensible long-term position due to its global scale and defence diversification. The high PE of 137.68 reflects market pricing for the defence component of its business. Investors must understand that much of the PE premium is attributable to defence optionality rather than current earnings. The auto business is the current earnings base; the defence business is the growth option.

Ramkrishna Forgings: Commercial Vehicle Focused Forging Stock

Ramkrishna Forgings, headquartered in Kolkata, is a specialist in commercial vehicle forgings including axles, crankshafts, and transmission components. Market cap Rs 13,572 crore, PE 126.92, ROE 2.46%, D/E 0.74, EPS Rs 5.87. The company primarily supplies Ashok Leyland, Tata Motors, and commercial vehicle OEMs in India and exports to North America.

Ramkrishna Forgings is the most cyclically exposed of the three featured forging stocks in India, being heavily dependent on commercial vehicle production cycles. The current ROE of 2.46% is below cost of capital, reflecting the CV sector downcycle. As CV production recovers in FY27 and export orders ramp up, earnings and ROE should improve significantly from current depressed levels.

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Sundram Fasteners: The Quality Fasteners Stock

Sundram Fasteners, part of the TVS Group, manufactures precision fasteners, power tools, and cold extruded components for automotive OEMs globally. Market cap Rs 25,801 crore, PE 42.05 (the most attractively valued of the three on PE basis and near the sector average of 39.62), ROE 13.83%, D/E 0.15, EPS Rs 29.20, dividend yield 0.65%.

Sundram Fasteners is the highest-quality and most conservatively financed of the three forging stocks in India on balance sheet metrics. ROE of 13.83%, D/E of 0.15, and PE of 42.05 make it the quality anchor in this peer group. TVS Group parentage provides governance quality and access to leading global automotive OEM relationships. The UK manufacturing subsidiary adds export revenue diversification.

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Why Forging Stocks in India Are Benefiting from Auto and Defence Cycles

India’s record automotive production of 3.2 crore vehicles in FY26 directly drives forging volume demand. Commercial vehicle production, which is more closely tied to industrial and infrastructure activity, is recovering after an FY25 moderation. India’s forging export market has crossed $2 billion annually as global OEMs diversify supply chains from China and forge long-term relationships with Indian suppliers. Defence forgings for platforms like Tejas, helicopters, and naval vessels add a strategic revenue stream for Bharat Forge.

Key Factors Driving Forging Stocks Stocks

• Auto volume records: India’s 3.2 crore vehicle production in FY26 drives forging component demand across all three stocks.
• Defence diversification: Bharat Forge’s defence components business provides revenue diversification beyond the auto cycle.
• Export market growth: Global OEM supply chain diversification from China is expanding Indian forging exports past $2 billion.
• CV cycle recovery: Commercial vehicle production is expected to recover in FY27, benefiting Ramkrishna Forgings.
• Fastener penetration: Sundram Fasteners benefits from increasing fastener content per vehicle as vehicle complexity rises.

Risks of Investing in Forging Stocks Stocks

• Auto cycle sensitivity: All three forging stocks are sensitive to OEM production volume changes which directly affect component order volumes.
• High PE multiples: Bharat Forge at 137.68x and Ramkrishna at 126.92x reflect near-trough earnings; any recovery delay would be painful.
• Input cost volatility: Steel scrap and special alloy prices are key inputs for forging stocks and affect margins directly.
• OEM concentration: Single OEM dependence at Ramkrishna creates customer concentration risk if that OEM reduces production.
• EV disruption risk: Some ICE-specific forgings like crankshafts face long-term demand reduction as EV penetration increases.

How to Choose the Right Forging Stocks Stock

• Choose Bharat Forge for the most diversified forging stock in India with defence optionality and global OEM relationships.
• Choose Ramkrishna Forgings for a CV recovery bet, accepting current low ROE as a trough-cycle entry point.
• Choose Sundram Fasteners for the best-quality fastener stock with TVS Group backing and the most attractive PE among the three.
• Monitor SIAM monthly CV and PV production data as the primary demand indicator for all forging stocks.
• Track Bharat Forge’s defence order announcements as the key differentiator for the stock’s valuation premium.

Conclusion

Forging stocks in India offer exposure to three complementary themes: global OEM supply chain diversification, India’s defence export ambition, and the domestic auto production supercycle. Bharat Forge, Ramkrishna Forgings, and Sundram Fasteners each carry different risk-return profiles within this industrial sector. Investors comfortable with the auto cycle and a 3-5 year horizon will find the structural export and defence diversification case compelling across these forging stocks.

FAQs

Which are the top forging stocks in India?

Ans. The three leading forging stocks in India are Bharat Forge (global scale and defence diversification), Ramkrishna Forgings (CV-focused recovery bet), and Sundram Fasteners (TVS Group quality fasteners). Bharat Forge is the most diversified; Sundram is the best quality on balance sheet metrics; Ramkrishna offers the highest upside if the CV cycle recovers.

Why is Bharat Forge’s PE so high among forging stocks?

Ans. Bharat Forge’s PE of 137.68 reflects the current near-trough earnings base from the automotive cycle and the market pricing of its defence business at a premium multiple. As auto volumes recover and defence order revenues ramp up, the blended PE will compress. The current valuation embeds significant defence business optionality for this forging stock.

Is Ramkrishna Forgings a good recovery bet?

Ans. Ramkrishna Forgings is heavily exposed to commercial vehicle production cycles. With ROE of 2.46% at current depressed earnings, it is a clear recovery bet. If CV production recovers 15-20% in FY27 and export order ramp-up continues, earnings could improve substantially. Investors must be comfortable with the cyclical risk and moderate leverage at D/E 0.74.

What makes Sundram Fasteners a quality forging stock?

Ans. Sundram Fasteners has ROE of 13.83%, D/E of 0.15, and PE of 42.05, making it the most conservatively financed and best-valued on earnings quality among the three forging stocks. TVS Group parentage ensures governance quality and OEM access. Its UK manufacturing subsidiary and growing export business reduce domestic cycle dependency.

How do auto production cycles affect forging stocks?

Ans. Forging stocks are directly correlated with OEM production volumes since forgings are essential components in every vehicle. A 10% rise in auto production typically translates into 8-12% revenue growth for forging companies, adjusted for content per vehicle changes. SIAM monthly production data is the most timely indicator for forging stock demand.

What is Bharat Forge’s defence business?

Ans. Bharat Forge manufactures defence components including artillery barrels, mortar tubes, aircraft structural components, and naval vessel parts. It also manufactures Kalyani M4 armoured personnel carriers. This defence business provides a revenue stream that is independent of the automotive cycle and benefits from India’s growing defence export ambition.

How are Indian forging exports growing?

Ans. India’s forging exports have crossed $2 billion annually driven by global OEM supply chain diversification from China. Indian forging companies offer competitive pricing, quality certifications, and growing technical capability. Bharat Forge and Sundram Fasteners have established manufacturing subsidiaries in Europe and the UK respectively to serve global OEM customers directly.

Are EV sales a risk for forging stocks?

Ans. EV adoption is a long-term structural risk for ICE-specific forgings like crankshafts and connecting rods. However, EVs still use many forged components including axles, suspension parts, and chassis components. Companies that diversify into EV-compatible forgings and non-automotive segments like defence and industrial will be less affected than pure ICE-specific forging stocks.