3 CNC Machines, Forged Components and Energy Equipment Stocks With a Strong Future Roadmap: Jyoti CNC Automation, Happy Forgings and Thermax
- October 22, 2026
- Posted by: Kunal Singla
- Category: Best Stocks
Jyoti CNC Automation, Happy Forgings and Thermax: ROE of 13.0% to 16.8% and FY22 to FY26 revenue CAGR of 15.3% to 30.2%. Prices as of 21 Oct 2026.
Quick Answer
The three precision engineering stocks to watch are Jyoti CNC Automation, Happy Forgings and Thermax. Their return on equity ranges from 13.0% to 16.8%, and their revenue compound annual growth from FY22 to FY26 ranges from 15.3% to 30.2%. Jyoti CNC Automation leads on both return on equity at 16.8% and revenue growth at 30.2% a year. Prices are based on the 21 October 2026 close, and this article is educational, not investment advice.
Precision engineering stocks let investors follow the makers of machines, parts and systems that factories depend on. Jyoti CNC Automation, Happy Forgings and Thermax cover CNC machines, forged components and energy and environment equipment.
This list covers three precision engineering stocks with complete current figures: Jyoti CNC Automation, Happy Forgings and Thermax. Every figure comes from the latest reported financials and the 21 October 2026 market close. Companies without complete current figures were left out.
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What Are Precision Engineering Stocks?
Precision engineering stocks are listed companies that make machine tools, forged parts and industrial systems for aerospace, auto, power and general engineering customers. Their earnings depend on factory investment, order books and plant utilisation.
Precision Engineering Stocks at a Glance
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE (%) | D/E |
|---|---|---|---|---|---|---|
| Jyoti CNC Automation | 914.9 | 22,175 | 68.9 | 44.4 | 16.8 | 0.43 |
| Happy Forgings | 1,825.7 | 17,630 | 53.9 | 50.7 | 14.2 | 0.15 |
| Thermax | 3,145 | 38,542 | 65.2 | 43.9 | 13.0 | 0.42 |
On valuation, all three trade at a P/E above their industry P/E, which reflects the growth the market already expects from them. Readers comparing precision engineering stocks should look at return on equity and debt together, since a high return earned with low debt is easier to sustain.
Why Do Precision Engineering Stocks Have a Strong Roadmap in India?
Precision engineering stocks have a strong roadmap in India because factory investment, aerospace and defence demand and the move towards local production are lifting orders for machines and precision parts.
- Manufacturing push. New plants need machine tools and industrial systems.
- Precision parts. Aerospace and engine makers source forged components.
- Energy efficiency. Industries are adopting cleaner and more efficient equipment.
Why Jyoti CNC Automation Features Among These Precision Engineering Stocks
Among the precision engineering stocks on this list, Jyoti CNC Automation, based in Rajkot, makes computer numerical control machines, including multi-axis machining centres, for aerospace, defence, auto and general engineering customers.
Revenue rose from Rs 750 crore in FY22 to Rs 2,154 crore in FY26, a compound annual growth rate of 30.2%. Net profit grew from Rs 151 crore in FY24 to Rs 336 crore in FY26, which works out to a compound annual growth rate of 49.2%.
In the June 2026 quarter, revenue grew 19.0% year on year to Rs 512 crore. The company has a return on equity of 16.8%, a debt to equity ratio of 0.43 and a market capitalisation of Rs 22,175 crore. The stock trades at a P/E of 68.9, above the industry P/E of 44.4.
Roadmap: Defence and aerospace manufacturing, along with the shift to precision machining at Indian factories, supports demand for advanced CNC machines. The company has also built a presence in Europe through an acquisition, adding technology and customers abroad.
What to watch: Watch order book trends and how quickly the international business contributes.
Why Happy Forgings Features Among These Precision Engineering Stocks
Among the CNC machine shares on this list, Happy Forgings is a Ludhiana-based maker of forged and machined components for engines, transmissions and axles, selling to commercial vehicle, off-highway, farm and industrial customers.
In the June 2026 quarter, revenue grew 26.5% year on year to Rs 460 crore, while net profit rose 39.2% to Rs 91.5 crore. Revenue rose from Rs 866 crore in FY22 to Rs 1,577 crore in FY26, a compound annual growth rate of 16.2%.
Net profit grew from Rs 142 crore in FY22 to Rs 302 crore in FY26, which works out to a compound annual growth rate of 20.7%. The company has a return on equity of 14.2%, a debt to equity ratio of 0.15 and a market capitalisation of Rs 17,630 crore. The stock trades at a P/E of 53.9, above the industry P/E of 50.7.
Roadmap: The company is adding machining capacity and widening its range to serve passenger vehicles, railways and aerospace, which reduces reliance on a single segment. Its focus on precision components supports long-term relationships with global customers.
What to watch: Monitor the pace of new capacity and the shift towards higher-value, fully machined parts.
Why Thermax Features Among These Precision Engineering Stocks
Among the three companies on this list, Thermax is a Pune-based engineering company that provides energy and environment solutions, including boilers, heating and cooling systems, water and waste treatment, air pollution control and speciality chemicals.
The company has a return on equity of 13.0%, a debt to equity ratio of 0.42 and a market capitalisation of Rs 38,542 crore. The stock trades at a P/E of 65.2, above the industry P/E of 43.9.
Revenue rose from Rs 6,255 crore in FY22 to Rs 11,041 crore in FY26, a compound annual growth rate of 15.3%. Net profit grew from Rs 312 crore in FY22 to Rs 720 crore in FY26, which works out to a compound annual growth rate of 23.2%. In the June 2026 quarter, revenue grew 6.6% year on year to Rs 2,371 crore.
Roadmap: Industrial demand for cleaner energy, efficient heating and cooling and pollution control creates a broad base of orders. The company is building newer lines in areas such as waste to energy, bio-energy and green solutions.
What to watch: Monitor order inflow across its energy and environment segments.
Jyoti CNC Automation vs Happy Forgings vs Thermax on Key Financials
The table below sets the three precision engineering stocks side by side on revenue, profit and margin, using reported figures.
| Company | FY22 Revenue (Rs Cr) | FY26 Revenue (Rs Cr) | Revenue CAGR (FY22-FY26) | FY26 Net Profit (Rs Cr) | FY26 Net Margin |
|---|---|---|---|---|---|
| Jyoti CNC Automation | 750 | 2,154 | 30.2% | 336 | 15.6% |
| Happy Forgings | 866 | 1,577 | 16.2% | 302 | 19.1% |
| Thermax | 6,255 | 11,041 | 15.3% | 720 | 6.5% |
Jyoti CNC Automation posts the highest return on equity in this group at 16.8%. Thermax has the largest FY26 revenue at Rs 11,041 crore, and Jyoti CNC Automation shows the fastest revenue growth with a 30.2% compound annual rate. A useful habit with precision engineering stocks is to check each new quarterly result against the capacity plans the company described earlier.
The June 2026 quarter, the latest reported, gives a fresh read on momentum:
| Company | Q1 FY26 Revenue (Rs Cr) | Q1 FY27 Revenue (Rs Cr) | Year-on-Year Growth |
|---|---|---|---|
| Jyoti CNC Automation | 431 | 512 | 19.0% |
| Happy Forgings | 364 | 460 | 26.5% |
| Thermax | 2,223 | 2,371 | 6.6% |
Key Risks to Check Before Investing in Precision Engineering Stocks
Every theme carries risks that deserve a check before any decision. For these precision engineering stocks, the main points are: Long-term CNC machine shares holders usually track revenue growth, margins and cash flow side by side rather than relying on a single ratio.
- Investment cycles. Demand can slow if customers delay capital spending.
- Order timing. Large orders may be recorded unevenly across quarters.
- Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them.
Treat this list as a starting point for research and not as a recommendation. Read the latest results presentation, check the management commentary on order books or capacity plans, and compare each company with its peers before you decide anything.
Use the Univest Stock Screener to filter precision engineering stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.
Final Thoughts on Precision Engineering Stocks
Precision engineering stocks reward investors who follow order books, utilisation and margins together. Jyoti CNC Automation, Happy Forgings and Thermax each address a different industrial need. Based on the 21 October 2026 close, Jyoti CNC Automation trades at Rs 914.9, Happy Forgings at Rs 1,825.7 and Thermax at Rs 3,145.
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Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
What are precision engineering stocks?
Ans. Precision engineering stocks are listed companies that make machine tools, forged parts and industrial systems for aerospace, auto, power and general engineering customers. Their earnings depend on factory investment, order books and plant utilisation. This list looks at three of them, Jyoti CNC Automation, Happy Forgings and Thermax, using reported FY22 to FY26 financials and the 21 October 2026 closing prices.
Which precision engineering stocks are covered in this list?
Ans. This list covers Jyoti CNC Automation, Happy Forgings and Thermax. Based on the 21 October 2026 close, Jyoti CNC Automation traded at Rs 914.9, Happy Forgings at Rs 1,825.7 and Thermax at Rs 3,145. Their return on equity ranges from 13.0% to 16.8%, and their revenue compound annual growth from FY22 to FY26 ranges from 15.3% to 30.2%.
Why do precision engineering stocks have a strong future roadmap in India?
Ans. Precision engineering stocks have a strong roadmap in India because factory investment, aerospace and defence demand and the move towards local production are lifting orders for machines and precision parts. The main drivers are as follows. Manufacturing push. New plants need machine tools and industrial systems. Precision parts. Aerospace and engine makers source forged components. Energy efficiency. Industries are adopting cleaner and more efficient equipment. Together these factors give the companies on this list a visible path for growth over the coming years.
How has Jyoti CNC Automation performed financially?
Ans. Revenue rose from Rs 750 crore in FY22 to Rs 2,154 crore in FY26, a compound annual growth rate of 30.2%. Net profit grew from Rs 151 crore in FY24 to Rs 336 crore in FY26, which works out to a compound annual growth rate of 49.2%. In the June 2026 quarter, revenue grew 19.0% year on year to Rs 512 crore. The company has a return on equity of 16.8%, a debt to equity ratio of 0.43 and a market capitalisation of Rs 22,175 crore. The stock trades at a P/E of 68.9, above the industry P/E of 44.4. Looking ahead, defence and aerospace manufacturing, along with the shift to precision machining at Indian factories, supports demand for advanced CNC machines. The company has also built a presence in Europe through an acquisition, adding technology and customers abroad.
How has Happy Forgings performed financially?
Ans. Revenue rose from Rs 866 crore in FY22 to Rs 1,577 crore in FY26, a compound annual growth rate of 16.2%. Net profit grew from Rs 142 crore in FY22 to Rs 302 crore in FY26, which works out to a compound annual growth rate of 20.7%. In the June 2026 quarter, revenue grew 26.5% year on year to Rs 460 crore, while net profit rose 39.2% to Rs 91.5 crore. The company has a return on equity of 14.2%, a debt to equity ratio of 0.15 and a market capitalisation of Rs 17,630 crore. The stock trades at a P/E of 53.9, above the industry P/E of 50.7. Looking ahead, the company is adding machining capacity and widening its range to serve passenger vehicles, railways and aerospace, which reduces reliance on a single segment. Its focus on precision components supports long-term relationships with global customers.
How has Thermax performed financially?
Ans. Revenue rose from Rs 6,255 crore in FY22 to Rs 11,041 crore in FY26, a compound annual growth rate of 15.3%. Net profit grew from Rs 312 crore in FY22 to Rs 720 crore in FY26, which works out to a compound annual growth rate of 23.2%. In the June 2026 quarter, revenue grew 6.6% year on year to Rs 2,371 crore. The company has a return on equity of 13.0%, a debt to equity ratio of 0.42 and a market capitalisation of Rs 38,542 crore. The stock trades at a P/E of 65.2, above the industry P/E of 43.9. Looking ahead, industrial demand for cleaner energy, efficient heating and cooling and pollution control creates a broad base of orders. The company is building newer lines in areas such as waste to energy, bio-energy and green solutions.
What risks should investors check before buying precision engineering stocks?
Ans. Investors should check a few risks before buying precision engineering stocks. Investment cycles. Demand can slow if customers delay capital spending. Order timing. Large orders may be recorded unevenly across quarters. Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them. Reading the latest results presentation and comparing each company with its peers helps judge how these risks apply to each stock.
Is this list of precision engineering stocks investment advice?
Ans. No. This article is educational and uses publicly available data as of the 21 October 2026 close. Please verify figures on NSE and BSE, read company filings and consult a SEBI registered adviser before investing. Univest is SEBI registered research analyst INH000013776.
