5 Forging Stocks in India with Strong Future Roadmaps as Automotive and Infrastructure Growth Drive Precision Component Demand

India's forging industry is the world's third-largest at Rs 22,000+ crore in FY26, serving automotive OEMs who make up 65%+ of demand. As vehicle production grows, railway component orders increase, and global automotive brands diversify sourcing to India, forging stocks benefit from both domestic and export demand growth. India's cost advantage in precision machining makes its forging stocks competitive with Eastern European and Chinese suppliers for export markets.

For investors, forging stocks at sector PE 53.57 include a mix of value plays (Mahindra CIE at 16.77, SSWL at 21.82) and recovery plays (Ramkrishna at 123.71). The export opportunity and railway expansion create multi-year demand visibility. All price and fundamental data is as of 25 August 2026.

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What Are Forging Stocks in India?

Forging stocks are shares in companies that produce forged metal components (crankshafts, connecting rods, gears, flanges), castings (engine blocks, brake components), wheel rims, and fasteners (bolts, nuts, screws) for automotive, railway, agricultural, and industrial applications. India's listed forging sector includes Ramkrishna Forgings (truck forgings), Mahindra CIE Automotive (diversified automotive forgings, a joint venture with CIE Automotive Spain), Steel Strips Wheels (two-wheeler and four-wheeler wheel rims), Sundram Fasteners (high-tensile fasteners), and Hi-Tech Gears (automotive gear sets). These forging stocks serve domestic OEMs and export to global automotive manufacturers in USA, Europe, and Japan.

Budget 2026-27 Impact on Castings, Forgings and Fasteners Stocks

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• Vehicle Scrappage Policy driving replacement demand: Old vehicle scrappage under the Voluntary Vehicle Fleet Modernisation Programme creates new vehicle OEM orders, directly increasing forging component demand for forging stocks.
• Railway component indigenisation: Indian Railways' Rs 2.5 lakh crore modernisation programme and Vande Bharat train fleet expansion create large domestic forging component orders for railway-capable forging stocks.
• PLI for automobile and auto components: Rs 25,938 crore PLI for automobiles and auto components supports OEM production growth that directly drives forging volume for auto-focused forging stocks.
• Defence indigenous manufacturing for vehicles and equipment: Make in India in defence vehicles, artillery, and armoured equipment creates high-specification forging component demand for technically capable forging stocks.
• Export promotion for auto components: India's auto component export has crossed USD 20 billion annually, with forging stocks contributing a significant share. Government export promotion schemes support this growth.

5 Castings, Forgings and Fasteners Stocks in India to Watch in 2026

Company	CMP (Rs)	Market Cap (Rs Cr)	P/E Ratio	ROE (%)
Ramkrishna Forgings	726	13,228	123.71	2.46%
Mahindra CIE Automotive	399	15,146	16.77	11.66%
Steel Strips Wheels	295	4,635	21.82	10.54%
Sundram Fasteners	1,200	25,000	35.00	20.00%
Hi-Tech Gears	450	850	20.00	12.00%

Data as of 25 August 2026. For 52-week high/low, verify at nseindia.com before making any investment decision.

1. Ramkrishna Forgings (NSE: RAMKRISHN)

Ramkrishna Forgings is the largest commercial vehicle (truck and bus) forging specialist among listed forging stocks, producing crankshafts, front axle beams, and safety-critical components for domestic and US truck markets. Founded in 1981 and headquartered in Kolkata, the company's main revenue is now split between domestic CV OEMs (Tata Motors, Ashok Leyland) and US Class 8 truck manufacturers. Market cap is Rs 13,228 crore at CMP Rs 726. PE of 123.71 is very high because current earnings are compressed from temporary US truck demand softness; ROE is 2.46% and D/E is 0.74. Ramkrishna's US truck segment was affected by a North American Class 8 inventory correction in FY26. For investors in forging stocks who understand the cyclical nature of the US truck market and believe in recovery, Ramkrishna's recovery PE will normalise significantly when US demand returns. The underlying asset quality and export capability are demonstrated.

2. Mahindra CIE Automotive (NSE: MAHINDRACIE)

Mahindra CIE Automotive is the most value-priced forging stock at PE 16.77 — 70% below the sector average — with near-zero debt (D/E 0.07) and the highest dividend yield at 1.75% among these forging stocks. A joint venture between Mahindra and CIE Automotive Spain, the company manufactures forgings, aluminium products, castings, and composites for two-wheelers, four-wheelers, and tractors across India and Europe. Market cap is Rs 15,146 crore at CMP Rs 399. ROE is 11.66% — the highest among these five forging stocks. Mahindra CIE's European operations (through CIE parent) provide international automotive OEM client access. For investors in forging stocks who want the best combination of value PE, highest ROE, near-zero debt, and international exposure, Mahindra CIE is the standout quality forging stock.

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3. Steel Strips Wheels (NSE: SSWL)

Steel Strips Wheels (SSWL) is India's second-largest steel wheel manufacturer and a forging-adjacent stock supplying pressed steel wheel rims to two-wheeler and four-wheeler OEMs. Founded in 1985 and headquartered in Chandigarh, the company supplies to Hero MotoCorp, TVS, Bajaj Auto, Maruti, and Hyundai. Market cap is Rs 4,635 crore at CMP Rs 295. PE of 21.82, below sector average, ROE is 10.54%, and D/E is 0.46. SSWL's wheel rim business is closely tied to two-wheeler and four-wheeler production volumes. As India's vehicle production grows, SSWL's revenue grows proportionately without the cyclical exposure of commercial vehicle-heavy forging stocks. For investors in forging stocks seeking moderate PE and vehicle production volume exposure without CV cycle risk, SSWL is a stable mid-cap auto components option.

4. Sundram Fasteners (NSE: SUNDRMFAST)

Sundram Fasteners is the premier fastener forging stock in India — a TVS Group company that manufactures high-tensile fasteners, powder metal parts, cold extruded parts, and radiator caps for global automotive and industrial clients. Founded in 1966 and headquartered in Chennai, the company exports to Volvo, Ford, GM, Caterpillar, and other global manufacturers from its India and China plants. Market cap is approximately Rs 25,000 crore at an estimated CMP of Rs 1,200. PE approximately 35, ROE approximately 20% (among the highest in precision engineering), and D/E approximately 0.15. Sundram's export revenue of 40%+ of total demonstrates its global-quality manufacturing recognition. For investors in forging stocks who want a high-ROE precision fastener manufacturer with TVS Group governance and significant global export credentials, Sundram Fasteners is the quality premium choice. Note: verify exact fundamentals at nseindia.com.

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5. Hi-Tech Gears (NSE: HITECHGEAR)

Hi-Tech Gears is a small-cap forging stock specialising in precision gear sets for automotive transmissions, including two-wheeler, passenger vehicle, and commercial vehicle gearboxes. Founded in 1985 and headquartered in Gurgaon, the company supplies to Maruti Suzuki, Tata Motors, Mahindra, and Honda. Market cap is approximately Rs 850 crore at an estimated CMP of Rs 450. PE approximately 20, ROE approximately 12%, and D/E approximately 0.40. Hi-Tech Gears' precision gear and transmission component specialisation creates a high-complexity, high-quality niche in the forging space. The company's EV transition adaptation includes developing gears for electric vehicle powertrains, which have fewer but more precision-critical gear components. For investors in forging stocks who want small-cap precision transmission gear exposure with EV adaptation potential, Hi-Tech Gears is an interesting micro/small-cap forging play. Note: verify exact fundamentals at nseindia.com.

What Factors Affect Castings, Forgings and Fasteners Stocks?

• Automotive OEM production volumes: Forging stocks' revenue directly tracks vehicle production. Higher two-wheeler and four-wheeler production quarters drive volume for domestic forging component manufacturers.
• Commercial vehicle cycle (trucks and buses): Ramkrishna Forgings and other CV-focused forging stocks are highly sensitive to India and US truck production cycles. CV production has a distinct 3-4 year up-down cycle.
• Export order book from global automotive brands: Global automotive brands are increasing India sourcing for safety-critical components like crankshafts and fasteners. Forging stocks winning export orders grow revenue independent of domestic vehicle cycles.
• Steel price cycles: Forging stocks use steel billets as the primary raw material. Steel price increases compress margins unless selling price adjustments are made to OEM customers, who typically resist frequent price revisions.
• Railway component procurement orders: Indian Railways' new locomotive, wagon, and coach orders create incremental forging component demand. Forging stocks with railway-qualified component capabilities benefit from this government procurement pipeline.

Benefits of Investing in Castings, Forgings and Fasteners Stocks

• India's vehicle production growing at 8-10% annually: Rising two-wheeler penetration in rural India and four-wheeler affordability in urban markets continue to expand the domestic addressable market for forging stocks.
• Global automotive brands sourcing from India: Quality certifications (IATF 16949, VDA 6.3) from Indian forging stocks are enabling export wins from Volvo, Ford, GM, and other global brands who were previously sourcing from Germany and China.
• Railway modernisation creating new component demand: Vande Bharat train program, new MEMU and DEMU sets, and freight wagon expansions create non-automotive forging demand for capable forging stocks.
• EV powertrain adaptation opportunity: While EVs have fewer engine forgings, they have precision motor and reducer gear requirements. Forging stocks that adapt their tooling for EV powertrain components can sustain relevance.
• India's cost competitiveness in precision manufacturing: Indian forging stocks can produce components at 30-40% lower cost than German or US forges, making them price-competitive in global markets without compromising quality.

Risks to Consider Before Investing

• CV production cycle risk: Forging stocks with high commercial vehicle exposure (Ramkrishna) face 30-40% revenue decline in CV production down cycles. The North America Class 8 truck market is particularly volatile.
• Steel price spikes without immediate pass-through: Steel price spikes reduce margins for forging stocks immediately while OEM selling price revisions take 1-3 months to process and implement.
• EV transition reducing engine forging demand long-term: As EV adoption grows, demand for traditional engine components (crankshafts, connecting rods, camshafts) in ICE vehicles declines. Forging stocks must adapt or diversify product range.
• Competition from Chinese and Eastern European forgings: Chinese and Turkish forging companies have cost advantages on bulk standard components. Indian forging stocks must focus on precision, safety-critical, and specialty high-specification components.
• Customer concentration in automotive OEMs: Most forging stocks have 50%+ revenue from 3-5 automotive OEM customers. Any single customer's production shutdown (recall, plant issue) directly affects forging volumes.

How to Choose Castings, Forgings and Fasteners Stocks

• Export revenue above 25%: Forging stocks with significant international revenue (Sundram Fasteners at 40%+, Ramkrishna from US truck) are diversified from domestic automotive cycles and demonstrate global quality credentials.
• PE near or below sector average 53: Mahindra CIE (16.77) and SSWL (21.82) are far below the sector average, offering value. Sundram at 35 commands a quality ROE premium. Ramkrishna's high PE is cyclically distorted.
• ROE above 10%: Mahindra CIE (11.66%), Sundram (20%), SSWL (10.54%), and Hi-Tech (12%) are above this threshold. Ramkrishna's current 2.46% ROE is cycle-trough depressed.
• Diversification across automotive segments: Forging stocks serving both two-wheelers and four-wheelers (Mahindra CIE) are more resilient than single-segment specialists. Railway and export diversification adds further stability.
• EV adaptation investment: Forging stocks that have invested in tooling and certification for electric vehicle transmission and motor components will be better positioned as EV adoption grows.

How to Invest in Castings, Forgings and Fasteners Stocks in India

Step 1: Open a SEBI-registered demat account. Univest offers zero-brokerage broking with integrated research, so you can screen, research, and invest in castings, forgings and fasteners stocks from one platform.

Step 2: Use the Univest Screener to filter the sector by PE, ROE, D/E, and revenue growth. This gives you a ranked snapshot of all listed castings, forgings and fasteners companies.

Step 3: Review financial statements of your shortlist. Look at three-year revenue trends, net profit margins, and operating cash flows. Single-quarter numbers are not a sufficient basis for long-term allocation in this sector.

Step 4: Decide on position size based on your risk tolerance. High-growth castings, forgings and fasteners stocks carry more volatility than diversified blue-chips. Diversify across two or three names rather than concentrating in one.

Step 5: Set price alerts and monitor quarterly results. The Univest app lets you track analyst views and set real-time alerts so you stay informed on order inflows, margin trends, and management guidance.

Conclusion

The five forging stocks covered here, Ramkrishna Forgings, Mahindra CIE Automotive, Steel Strips Wheels, Sundram Fasteners, and Hi-Tech Gears, represent India's precision engineering sector from CV forging specialists to diversified global exporters. Automotive volume growth, railway component demand, and India's export competitiveness in precision engineering create compelling tailwinds. CV cycle volatility and EV transition risk are the key considerations. Consult a SEBI-registered investment advisor before making any investment decisions.

FAQs on Castings, Forgings and Fasteners Stocks in India 2026

Which are the top 5 forging stocks in India in 2026?

Ans. The top 5 forging stocks in India as of August 2026 are Ramkrishna Forgings (RAMKRISHN), Mahindra CIE Automotive (MAHINDRACIE), Steel Strips Wheels (SSWL), Sundram Fasteners (SUNDRMFAST), and Hi-Tech Gears (HITECHGEAR). Mahindra CIE has the most attractive PE at 16.77, the highest ROE at 11.66%, and the highest dividend at 1.75%. The sector PE at 53.57 is elevated due to cyclical earnings compression.

Why is Mahindra CIE Automotive considered the best value forging stock?

Ans. Mahindra CIE offers PE 16.77 (70% below sector average of 53.57), near-zero debt (D/E 0.07), highest dividend yield (1.75%), highest ROE (11.66%), and international operations through CIE Automotive Spain's European plants. The combination of value PE and quality metrics — zero debt, above-average ROE, dividend income — makes it the most analytically compelling forging stock among the five covered.

Why is Ramkrishna Forgings' PE so high despite being a large forging company?

Ans. Ramkrishna's PE of 123.71 is cyclically distorted. The company's US truck export segment (Class 8 trucks) entered an inventory correction cycle in FY26, reducing US export revenue significantly. This compressed EPS while the share price did not fall proportionately. When US truck demand recovers (historically a 2-3 year cycle), EPS will recover and the PE will normalise to 25-35x. Investors who buy during the trough cycle have historically earned strong returns in automotive forging stocks.

What is the difference between forging, casting, and fasteners for these stocks?

Ans. Forging is a process where heated metal is shaped under pressure, producing high-strength components (crankshafts, connecting rods, flanges). Casting pours molten metal into moulds for complex shapes (engine blocks, brake calipers). Fasteners are threaded components (bolts, nuts) produced through cold forging or machining. Mahindra CIE spans all three categories. Ramkrishna and SSWL specialise in hot forging. Sundram Fasteners focuses on precision fasteners. Hi-Tech Gears specialises in gear machining from forged blanks.

How does EV adoption affect forging stocks?

Ans. EV powertrains have no crankshaft, camshaft, or connecting rod — eliminating the largest forging components in ICE engines. However, EVs have motor shafts, reduction gears, differential components, and structural forged parts. Forging stocks that adapt machining and tooling to serve EV powertrain requirements can partially offset ICE component volume loss. The transition is gradual (10-15 year horizon) but requires forging stocks to invest in EV component qualifications today.

What makes Sundram Fasteners stand out among forging stocks?

Ans. Sundram Fasteners' ROE of approximately 20% is among the highest in precision auto component manufacturing. The TVS Group governance, 40%+ export revenue to global automotive OEMs, and the company's 60-year manufacturing history create exceptional institutional credibility. Fastener manufacturing requires ISO 898 and IATF certifications that take years to obtain. Sundram's certified status with Volvo, Ford, and Caterpillar creates durable switching costs for global clients.

How do I invest in forging stocks in India?

Ans. To invest in forging stocks, open a demat account with a SEBI-registered broker, filter by PE vs sector average, ROE, debt level, export revenue share, and automotive segment mix. Monitor quarterly vehicle production data (SIAM statistics) and CV cycle trends as primary demand indicators. Consult a SEBI-registered investment advisor before investing.