4 Largecap Capital Goods Stocks to Watch for Future Multibagger Potential: HAL, BHEL, Cummins India and CG Power
- October 27, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
HAL Rs 4,775. BHEL Rs 394.55. Cummins India Rs 4,385.50. CG Power Rs 833.25. Market caps from Rs 1.31 lakh crore to Rs 3.26 lakh crore. Data as of 26 Oct 2026.
Quick Answer
HAL, BHEL, Cummins India and CG Power are the 4 picks in this capital goods stocks watchlist, with market caps between Rs 1.31 lakh crore and Rs 3.26 lakh crore. HAL stands out for the biggest five-year price gain at 607.71%, while BHEL offers the fastest profit growth, 37.73% a year since FY22. PE ratios run from 35.00 to 105.99, so compare each one with its industry PE before investing. All figures are as of 26 October 2026.
Capital goods stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HAL, BHEL, Cummins India and CG Power meet that test, with market caps from Rs 1.31 lakh crore to Rs 3.26 lakh crore and HAL offering the biggest five-year price gain at 607.71%. Each of these companies has a return on equity of at least 10 per cent and net profit growth in FY26 and in the latest quarter, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a return on equity of at least 10 per cent and net profit growth in FY26 and in the latest quarter, rising profit in FY26 and the latest quarter, market capitalisation above Rs 1,00,000 crore, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap above Rs 1 lakh crore. Investors screening capital goods stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 26 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Capital Goods Stocks and Why Do They Attract Multibagger Interest?
Capital goods stocks are shares of large companies that make machines, cables, engines and equipment that other businesses use to produce goods, so their orders rise when industry invests. The four here cover defence aerospace, power equipment, electrical equipment and engines.
Capital goods makers sit at the start of the investment cycle, so strong orders and profit often show up here first. For capital goods stocks, both FY26 and the latest quarter showed growth. With capital goods stocks, comparing valuation, growth and balance sheet strength together works better than relying on one number. Every company in the table below passed a rising-profit check, and the figures for capital goods stocks are complete. Read each company’s latest results and exchange filings before acting on capital goods stocks.
Capital Goods Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 26 October 2026. HAL has the lowest PE of the group at 35.00, while Cummins India posts the highest return on equity at 27.87%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Hindustan Aeronautics | 4,775 | 3,26,218 | 35.00 | 48.59 | 22.21% | 0.00 | 3,479.10 to 5,149.90 |
| Bharat Heavy Electricals | 394.55 | 1,49,714 | 51.99 | 45.89 | 10.76% | 0.23 | 229.54 to 464.00 |
| Cummins India | 4,385.50 | 1,31,647 | 55.62 | 45.93 | 27.87% | 0.00 | 3,883.10 to 6,100.00 |
| CG Power and Industrial Solutions | 833.25 | 1,31,420 | 105.99 | 45.89 | 15.13% | 0.01 | 525.50 to 980.90 |
HAL: Return on Equity of 22.21%
Hindustan Aeronautics is India’s state-owned aerospace company that designs, makes and services fighter jets, helicopters, engines and avionics. It reported FY26 revenue of Rs 36,787.95 crore, up 9.68% year on year, and net profit of Rs 9,115.52 crore, up 8.98%. Net profit has compounded at 15.74% a year since FY22, while revenue has grown 9.48% a year. Operating margin was 40.89% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
In the June 2026 quarter, revenue rose 15.26% to Rs 6,415.41 crore and net profit grew 14.88% to Rs 1,589.66 crore. The share price has gained 607.71% over five years. Domestic institutions raised their holding from 8.71% in September 2025 to 12.56% in September 2026. The stock trades at a PE of 35.00 against an industry PE of 48.59, below the sector average, with a return on equity of 22.21%.
BHEL: 37.73% Profit CAGR Since FY22
Bharat Heavy Electricals is a government-owned maker of power generation, transmission, industrial and transportation equipment. It reported FY26 revenue of Rs 34,589.83 crore, up 20.08% year on year, and net profit of Rs 1,600.26 crore, up 199.73%. Net profit has compounded at 37.73% a year since FY22, while revenue has grown 12.54% a year. Operating margin was 10.18% in FY26. The debt-to-equity ratio is 0.23.
The stock trades at a PE of 51.99 against an industry PE of 45.89. In the September 2026 quarter, revenue rose 24.28% to Rs 9,553.01 crore and net profit grew 118.98% to Rs 820.94 crore. The share price has gained 488.34% over five years and 86.13% over the past year. Domestic institutions raised their holding from 18.62% in September 2025 to 21.88% in September 2026.
Cummins India: 26.11% Profit CAGR Since FY22
Cummins India makes engines and power generation equipment and exports a share of its output. It reported FY26 revenue of Rs 12,660.53 crore, up 16.82% year on year, and net profit of Rs 2,361.75 crore, up 18.09%. Net profit has compounded at 26.11% a year since FY22, while revenue has grown 18.53% a year. Operating margin was 27.15% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.
In the June 2026 quarter, revenue rose 17.19% to Rs 3,563.35 crore and net profit grew 0.89% to Rs 609.30 crore. The share price has gained 408.59% over five years and 16.98% over the past year. Foreign investors raised their holding from 17.50% in June 2025 to 21.19% in June 2026. The stock trades at a PE of 55.62 against an industry PE of 45.93, with a return on equity of 27.87%.
CG Power: Revenue Up 25.73% in FY26
CG Power and Industrial Solutions makes transformers, motors, drives and railway signalling products, and has entered semiconductor assembly. It reported FY26 revenue of Rs 12,662.22 crore, up 25.73% year on year, and net profit of Rs 1,196.73 crore, up 23.00%. Net profit has compounded at 17.42% a year since FY22, while revenue has grown 23.06% a year. Operating margin was 14.88% in FY26. The debt-to-equity ratio is 0.01, which keeps interest costs low.
The stock trades at a PE of 105.99 against an industry PE of 45.89, with a return on equity of 15.13%. In the June 2026 quarter, revenue rose 15.76% to Rs 3,364.39 crore and net profit grew 15.52% to Rs 308.28 crore. The share price has gained 563.19% over five years. Domestic institutions raised their holding from 16.33% in July 2025 to 18.30% in June 2026.
Capital Goods Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these capital goods stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | 4-Year Net Profit CAGR | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| HAL | 36,787.95 | 9,115.52 | 9.68% | 9.48% | 15.74% | 44.22% |
| BHEL | 34,589.83 | 1,600.26 | 20.08% | 12.54% | 37.73% | 13.94% |
| Cummins India | 12,660.53 | 2,361.75 | 16.82% | 18.53% | 26.11% | 24.99% |
| CG Power | 12,662.22 | 1,196.73 | 25.73% | 23.06% | 17.42% | 14.66% |
Check the Univest Screener for live data on these capital goods stocks
Institutional Holding in HAL, BHEL, Cummins India and CG Power
Institutional holding shows who is backing these capital goods stocks alongside the promoter. The table uses the latest reported quarter for each. Cummins India has the deepest institutional backing, with FII and DII together holding 40.35% as of June 2026. Domestic institutions increased their holding over the past year in HAL (from 8.71% to 12.56%), BHEL (from 18.62% to 21.88%) and CG Power (from 16.33% to 18.30%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| HAL | 71.64% | 9.42% | 12.56% | 6.38% | September 2026 |
| BHEL | 58.17% | 9.94% | 21.88% | 10.02% | September 2026 |
| Cummins India | 51.00% | 21.19% | 19.16% | 8.66% | June 2026 |
| CG Power | 56.36% | 11.97% | 18.30% | 13.37% | June 2026 |
Risks to Weigh in Capital Goods Stocks
Being careful with capital goods stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: CG Power trades at a PE of 105.99 against an industry PE of 45.89, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Capital Goods Stocks
Picking from capital goods stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (45.89 to 48.59) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among capital goods stocks, HAL stands out for the biggest five-year price gain at 607.71%, BHEL for the fastest profit growth, 37.73% a year since FY22, Cummins India for the highest return on equity at 27.87% and CG Power for a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing capital goods stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
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).
Frequently Asked Questions on Capital Goods Stocks to Watch
Which are the best capital goods stocks to watch for multibagger potential?
Ans. HAL, BHEL, Cummins India and CG Power are the 4 names this list highlights, with market caps of Rs 3,26,218 crore, Rs 1,49,714 crore, Rs 1,31,647 crore and Rs 1,31,420 crore respectively. HAL is notable for the biggest five-year price gain at 607.71%. BHEL stands out for the fastest profit growth, 37.73% a year since FY22. Cummins India offers the highest return on equity at 27.87%. CG Power brings a nearly debt-free balance sheet, with a debt-to-equity ratio of 0.01. These are watchlist names for capital goods stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Cummins India a good stock for long-term investors?
Ans. Cummins India has a return on equity of 27.87%, a PE of 55.62 against an industry PE of 45.93 and a market cap of Rs 1,31,647 crore. Net profit has compounded at 26.11% a year since FY22, and FY26 revenue rose 16.82% while June 2026 quarter net profit grew 0.89%. Long-term returns in capital goods stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can BHEL become a multibagger from here?
Ans. BHEL has already gained 488.34% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in capital goods stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 37.73% a year since FY22, and FY26 revenue rose 20.08%. At a PE of 51.99 against an industry PE of 45.89, valuation should be checked against that growth before investing.
What is the market cap of HAL, BHEL, Cummins India and CG Power?
Ans. As of 26 October 2026, HAL has a market cap of Rs 3,26,218 crore, BHEL has a market cap of Rs 1,49,714 crore, Cummins India has a market cap of Rs 1,31,647 crore and CG Power has a market cap of Rs 1,31,420 crore. All of them qualify as largecaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on capital goods stocks.
What are the risks of investing in capital goods stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. CG Power trades at a PE of 105.99 against an industry PE of 45.89, so earnings growth needs to hold up.
Why is CG Power trading at a PE of 105.99?
Ans. CG Power’s PE of 105.99 compares with an industry PE of 45.89. The market is paying a premium for a return on equity of 15.13%, profit growth of 17.42% a year since FY22 and latest-quarter profit growth of 15.52%, which also means the stock is more sensitive if growth slows. Investors in capital goods stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in HAL, BHEL, Cummins India and CG Power?
Ans. As of the latest reported quarter, FII and DII together hold 21.98% of HAL (9.42% and 12.56%), 31.82% of BHEL (9.94% and 21.88%), 40.35% of Cummins India (21.19% and 19.16%) and 30.27% of CG Power (11.97% and 18.30%). Rising institutional holding is a useful signal in capital goods stocks, though it should be read with earnings trends rather than on its own.
