Best stocks to buy in the capital goods sector; I have brought some more stocks for long-term investment, for which I keep waiting for the time when I get profitable stocks, and we too can get some return. Then come, let’s talk about those stocks that I have found.
Here, we will see that this capital goods sector is going to make a big splash, and the Prabhudas Lilladher report for 2025 has given a list of best stocks to buy in the capital goods sector for it! This sector is set to show strong performance for Q1 FY26, with expected 15.1% revenue growth and 15.5% EBITDA growth (YoY).
Increasing investments in infrastructure, railway, defense, and power are giving it a boost. The outlook for capital goods sector Q1 FY26 is so promising that it could be a golden opportunity for investors. In this report, Prabhudas Lilladher has recommended 5 stocks: ABB India, Larsen & Toubro, Kirloskar Pneumatic, Triveni Turbine, and Voltamp Transformers, in which Kirloskar Pneumatic and Triveni Turbine are the top picks.
These best capital goods stocks in Indiacan provide an excellent opportunity for long-term investment, especially when India-US trade deals and domestic capex demand are further pushing the sector.
Curious why these are the top stocks to buy in 2025? Keep reading to know how these stocks can make your portfolio shine! Just remember to talk to your financial advisor before investing. And also tell me which stocks you have selected and why.
Why the Best Stock to Buy Capital Goods Sector is a Hot Investment in Q1FY26
The best stocks to buy in the Capital Goods Sector Q1FY26 are creating a tremendous opportunity for investors, and the reason for this is clearly explained in the Prabhudas Lilladher Report 2025. You can check that the sector is expected to have 15.1% revenue growth and 15.5% EBITDA growth (YoY), boosted by the low base of Q1FY25 (due to general elections).
I have observed that this growth is the result of increasing public capex in infrastructure, railways, defense, and power sectors. Not only is domestic demand strong, but export business is also flourishing due to India-US trade deals. According to my research on the best stocks to buy in the Capital Goods Sector Outlook, this sector is shining due to geopolitical tailwinds and execution strength and is seeing domestic traction in product companies and better margins in EPC firms, making it attractive for the best capital goods stocks in India.
Prabhudas Lilladher states that top stocks to buy in 2025, such as ABB India, Larsen & Toubro, Kirloskar Pneumatic, Triveni Turbine, and Voltamp Transformers, can benefit from this growth. Look, brother, these stocks can provide solid returns for long-term investors, but there is also risk involved. So, do not forget to consult your financial advisor before starting a business in the best stocks to buy in the Capital Goods Sector.
Prabhudas Lilladher’s Top Picks: Best Stocks to Buy in Capital Goods Sector
Prabhudas Lilladher Report 2025 has recommended 5 amazing stocks as the best stocks to buy in the capital goods sector, which can make a big splash in the Capital Goods Sector in Q1 FY26. So, are you ready to know these stocks? I am excited to tell you. These stocks are ABB India, Larsen & Toubro, Kirloskar Pneumatic, Triveni Turbine, and Voltamp Transformers, among which Kirloskar Pneumatic and Triveni Turbine are the top picks. Let’s learn about them in detail to understand why these are the top stocks to buy in 2025. You should also do your research before making any investment.
1. ABB India
This company is a leader in automation and power solutions. With a rapid increase in domestic demand and smart grid and renewable energy projects, this stock is a big name among the best capital goods stocks in India. According to Prabhudas, its strong order book and execution make it a solid bet for the long term. The fundamentals of the company are also strong: Market capitalization is ₹1,24,859 Cr, and Current Price is ₹5,894. Its revenue in FY24 was ₹12,542 Cr and net profit was ₹1,875 Cr, with a strong order book (₹8,500 Cr+).
2. Larsen & Toubro (L&T)
After infrastructure and EPC projects, L&T is a major player in railways, metros, and highways. Along with the Capital Goods Sector Outlook, L&T’s diversified portfolio and government capex support keep it among the top stocks to buy in 2025. Its order inflow is expected to remain strong in Q1 FY26. The company’s market capitalization is ₹4,92,117 Cr, and the current market price is ₹3,574. The P/E ratio is 32.73. L&T’s FY24 revenue was ₹2.5 lakh Cr, and net profit was ₹17,687 Cr. The strong order inflow in defense projects (₹3 lakh Cr+ order book) makes it a solid pick, along with the Capital Goods Sector Outlook.
3. Kirloskar Pneumatic
This top pick is doing wonders in industrial compressors. With demand in domestic and export markets, its growth potential is tremendous. With the trends of the Capital Goods Sector Q1 FY26, this stock can be a hidden gem for investors. The company’s market capitalization is ₹9,213 Cr, the current market price is ₹1,433 Cr, and the P/E ratio is 43.63. With March 25 revenue of ₹5.97 Cr and a net profit of ₹80 Cr, its focus is on domestic and export markets. Strong demand in the manufacturing and energy sectors makes it one of the best stocks to buy in the capital goods sector.
4. Triveni Turbine
Another top pick, Triveni Turbine is the global leader in steam turbines. India-US trade deals are boosting export growth and power sector projects. This is a strong contender among the best stocks to buy in the capital goods sector. The company’s market capitalization is ₹20,454 Cr, the current market price is ₹647, and the P/E ratio is 57.25.
5. Voltamp Transformers
This company is making a name for itself in the transformer market. With the increasing capex in the power sector, its revenue growth looks promising, making it a solid choice among the best capital goods stocks in India. The company’s market capitalization is ₹9,924 Cr, the stock’s current market price is ₹9,837, and the company’s P/E ratio is 30.50
These top stocks to buy in 2025 can provide great returns for long-term investors, but there is also risk involved. According to the Prabhudas Lilladher Report 2025, these stocks will benefit the growth of the sector. However, do talk to your financial advisor before investing!
Spotlight on Top Picks: Kirloskar Pneumatic and Triveni Turbine
Best stocks to buy in the capital goods sector; Prabhudas Lilladher Report 2025 has chosen Kirloskar Pneumatic and Triveni Turbine as top picks in the best stocks to buy in the capital goods sector, and both are shining in the Capital Goods Sector Q1 FY26. Kirloskar Pneumatic, the leader in industrial compressors, has shown 23% YoY growth in FY24 with ₹1,629 Cr revenue and ₹211 Cr net profit. Its 60%+ market share in the CNG and refrigeration segments and debt-free balance sheet make it solid. Demand from dairy, pharma, and food processing keeps it on top in the best capital goods stocks in India. On the other hand, Triveni Turbine, the global player in steam turbines, is showing 30% YoY growth with ₹1,653 Cr revenue and ₹260 Cr profit in FY24. Export orders (65% of the order book) and power sector demand make it the top stocks to buy in 2025. Along with the Capital Goods Sector Outlook, both these stocks are enjoying strong growth in domestic and export markets. This is perfect for long-term investors, but take advice from a financial advisor
Key Drivers Fueling the Capital Goods Sector in Q1FY26
Best stocks to buy in the capital goods sector; The Capital Goods Sector is witnessing a major boom in Q1FY26, and the Prabhudas Lilladher Report 2025 clearly explains the reasons for this. The sector is expected to have 15.1% revenue and 15.5% EBITDA growth, boosted by the low base of Q1FY25 (due to elections). Key drivers include increased public capex on railways, defense, power, and highways, supporting the best stocks to buy in the capital goods sector. Export opportunities from India-US trade deals are also excellent, especially in power and industrial equipment. Domestic demand is strong for product companies, and EPC firms are seeing better margins. According to the Capital Goods Sector Outlook, geopolitical tailwinds and execution strength are giving a further push to the sector. Best capital goods stocks in India like ABB India, Larsen & Toubro, Kirloskar Pneumatic, Triveni Turbine, and Voltamp Transformers can reap huge benefits from this growth. These top stocks to buy in 2025 are becoming a part of the infrastructure and export-driven rally. But do talk to your financial advisor before investing!
Why Invest in These Capital Goods Stocks in 2025?
Why is investing in the best stocks to buy in the capital goods sector a smart move in 2025? As per the Prabhudas Lilladher Report 2025, the capital goods sector is showing strong performance with 15.1% revenue and 15.5% EBITDA growth in Q1 FY26. The best capital goods stocks in India, such as ABB India, Larsen & Toubro, Kirloskar Pneumatic, Triveni Turbine, and Voltamp Transformers, are benefiting from the boom in the infrastructure, railway, defense, and power sectors. Kirloskar Pneumatic and Triveni Turbine, the top picks, are shining on the back of their strong fundamentals and export growth. L&T’s massive order book and ABB’s automation focus promise long-term returns. Voltamp’s debt-free status also makes it attractive. The capital goods sector outlook is bright with India-US trade deals and domestic capex, which will give a boost to the top stocks to buy in 2025. These stocks are solid for the long term but also have market risks. So, take advice from a financial advisor before investing money in the best stocks to buy in the capital goods sector
Disclaimer;The information provided in this blog is for educational purposes only and does not constitute investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Always consult a qualified financial advisor before making any investment decisions.
Read More; https://phelikiran.com/psu-banks-and-pharma-stocks-performance-june-2025/
CONCLUSION
The capital goods sector in India is poised for robust growth in Q1FY26, driven by increased public capex, export opportunities, and strong domestic demand, as highlighted by the Prabhudas Lilladher Report 2025. Kirloskar Pneumatic and Triveni Turbine stand out as top picks due to their strong financial performance, market leadership, and export-driven order books, making them compelling choices for long-term investors. Other stocks like ABB India, Larsen & Toubro, and Voltamp Transformers also benefit from infrastructure and power sector growth. However, market volatility and risks remain, so thorough research and consultation with a financial advisor are essential before investing in these best capitalLamb capital goods stocks India for 2025.
FAQs
Q1. Why are Kirloskar Pneumatic and Triveni Turbine top picks for 2025?
A. Kirloskar Pneumatic and Triveni Turbine are highlighted in the Prabhudas Lilladher Report 2025 for their strong YoY growth (23% and 30% respectively in FY24), market leadership (60%+ in CNG/refrigeration and steam turbines), and robust export orders, making them attractive for long-term investment.
Q2. What is driving the growth of the capital goods sector in Q1FY26?
A. The sector is experiencing a boom due to increased public capex in railways, defense, power, and highways, favorable India-US trade deals, and strong domestic demand for infrastructure and industrial equipment.
Q3. What are the risks associated Perseid associated with investing in capital goods stocks?
A. Market volatility, commodity price fluctuations, and supply chain disruptions are key risks. Consulting a financial advisor is crucial to assess your risk tolerance.
Q4. Which other capital goods stocks are recommended in the Prabhudas Lilladher Report 2025?
A. Besides Kirloskar Pneumatic and Triveni Turbine, the report recommends ABB India, Larsen & Toubro, and Voltamp Transformers for their strong order books and growth potential.
Q5. How does the capital goods sector benefit from India-US trade deals?
A. The sector benefits from increased export opportunities, particularly in power and industrial equipment, due to favorable trade agreements.
Q6.What is the outlook for the capital goods sector in 2025?
A. The Capital Goods Sector Outlook for 2025 is optimistic, with a projected 15.1% revenue and 15.5% EBITDA growth in Q1FY χω
Q7 .Should I consult a financial advisor before investing in capital goods stocks?
A. Yes, it’s advisable to consult a financial advisor to understand the risks associated with these stocks. The advisor can provide personalized advice based on your financial situation.
Invest in the booming capital goods sector with top picks like Kirloskar Pneumatic and Triveni Turbine from the Prabhudas Lilladher Report 2025! Consult your financial advisor now to seize growth opportunities in 2025’s best stocks to buy in the Capital Goods Sector in India. Act fast.