Best Castings & Forgings Stocks to Invest in Jan, 2026

What are Castings & Forgings Stocks?

Castings and forgings company stocks represent firms involved in producing metal components used across automotive, railway, construction, and industrial sectors. India’s metal casting market, valued at $13.2 billion in 2024, is projected to reach $21.9 billion by 2033 at a CAGR of 5.51%.

Key players like Bharat Forge Ltd posted a net profit of ₹212.78 crore and revenues of ₹3,475.55 crore in Q3 FY24, driven by robust industrial demand. AIA Engineering Ltd, known for high-chrome grinding media, reported ₹258.89 crore in profit with ₹1,066.22 crore in revenue during the same period. 

The Indian foundry market, a core part of this sector, is forecasted to grow from $25.57 billion in 2025 to $42.61 billion by 2030. Challenges like raw material price volatility, global competition, and cheaper imports, such as the surge in Chinese steel in late 2024, pose risks to profitability and stock performance in the short term. 

Why You Should Invest in Castings & Forgings Stocks?

You should invest in Castings & Forgings Stocks for 4 main reasons. The reasons are Infrastructure Expansion, Government Initiatives, Raw Material Price Volatility and Competitive Landscape.

• Infrastructure Expansion: India’s rapid industrialisation and infrastructure development have significantly increased the demand for castings and forgings. According to Fortune Business Insights, the Indian metal forging market is projected to grow from $5.08 billion in 2023 to $9.75 billion by 2030, exhibiting a CAGR of 9.8%.
• Government Initiatives: The Indian government’s “Make in India” campaign aims to boost domestic manufacturing, benefiting the casting and forging sectors. As reported by Tecnova, the industry is poised for double-digit growth rates, driven by imminent demand from emerging sectors, leading to increased foreign business setups in India.
• Raw Material Price Volatility: Fluctuations in raw material prices, such as steel, aluminium, and nickel, can significantly impact production costs and profit margins. The Association of Indian Forging Industry (AIFI) has expressed concerns over high raw material prices disrupting the supply chain and affecting capacity utilisation.
• Competitive Landscape: India’s casting and forging industry is witnessing robust growth, attracting new entrants and increasing competition. According to IMARC Group, the market reached $313.51 million in 2024 and is expected to reach $498.16 million by 2033, exhibiting a CAGR of 5.28% during 2025-2033.

According to Mordor Intelligence, India’s forging sector contributes nearly ₹50,000 crore to the economy, with exports accounting for over 25% of total production. With the rising demand from automotive, defense, and construction sectors, the industry is expected to witness strong expansion, making it a promising investment avenue.

What is the Future of Castings & Forgings Stocks?

​The future of India’s castings and forgings industry appears promising, driven by rapid industrialisation, infrastructure development, and increasing demand across various sectors. According to Fortune Business Insights, the Indian metal forging market is projected to grow from $5.08 billion in 2023 to $9.75 billion by 2030, exhibiting a CAGR of 9.8% during this period. This growth is fueled by the expansion of the automotive, aerospace, and construction industries, which rely heavily on forged components.​

Challenges persist for the industry, including raw material price volatility and environmental regulations. The Association of Indian Forging Industry (AIFI) has expressed concerns over high steel, aluminum, and nickel prices, which have disrupted supply chains and affected capacity utilization. Additionally, stricter environmental laws aimed at reducing pollution pose compliance challenges for foundries.

Despite these hurdles, the long-term growth of India’s castings and forgings industry remains strong, supported by increasing domestic demand and strategic investments in technology and capacity expansion.

What Factors Affect Castings & Forgings Stock Prices?

Castings & Forgings Stock Prices are affected by 3 main reasons. The reasons are Entry of New Competitors, Demand from Infrastructure and Technology Advancements. 

• Entry of New Competitors: The Indian castings and forgings industry is witnessing increased competition due to the entry of new players and the expansion of existing ones. The government’s ‘Make in India’ initiative has attracted foreign investment, leading to the establishment of new manufacturing units. This heightened competition can lead to market share dilution and pricing pressures for established companies. 
• Demand from Infrastructure: The castings and forgings industry benefits significantly from government initiatives aimed at infrastructure development. The Indian government’s plan to increase steel production capacity to 300 million metric tons by 2030 is expected to boost demand for forged products used in construction and heavy engineering projects. ​
• Technological Advancements: The adoption of advanced manufacturing technologies, such as automation and digitalization, is reshaping the castings and forgings industry. Companies investing in these technologies can enhance efficiency and product quality, gaining a competitive edge. The initial investment and adaptation period may impact short-term financial performance.

The Indian castings and forgings market is projected to reach $8 billion by 2029, growing at a CAGR of 10.69%. This growth is driven by increasing demand from sectors such as automotive, aerospace, and construction.

What are the Advantages of Investing in Castings & Forgings Stocks?

Investing in Castings & Forgings Stocks is advantageous for 3 main reasons. The reasons are Robust Market Growth, Diversification into High-Value Segments and Supportive Government Policies.

• Robust Market Growth: The Indian castings and forgings industry has exhibited significant expansion, driven by increasing demand from sectors such as automotive, aerospace, and construction. This growth trajectory is expected to continue, bolstered by infrastructure development and industrialisation.​
• Diversification into High-Value Segments: Companies within the sector are diversifying into high-value products to enhance profitability. For instance, Bharat Forge has expanded its portfolio to include components for electric vehicles and aerospace applications, aiming to capitalise on emerging market opportunities.​
• Supportive Government Policies: Government initiatives such as the ‘Make in India’ campaign and the National Steel Policy are fueling demand for castings and forgings. These programs focus on enhancing domestic manufacturing capabilities and infrastructure, creating substantial opportunities for companies in this sector.​

The Indian castings and forgings industry is poised for sustained growth, driven by supportive government initiatives and diversification into high-value segments. Investors should consider these factors when evaluating opportunities in this dynamic sector.

What are the Risks of Investing in Castings & Forgings Stocks?

Investing in Castings & Forgings Stocks is risky for 3 main reasons. The reasons are Financial Performance, Stock Market Returns and Competitive Pressures. 

• Market Growth and Financial Performance: The Indian castings and forgings industry has experienced significant expansion, with leading companies demonstrating strong financial performance. Bharat Forge Ltd reported a revenue of ₹9,618 crore, showcasing a 14.22% sales growth over three years and a ROE of 20.30%. AIA Engineering Ltd achieved a revenue of ₹3,044 crore, with a three-year sales growth of 13.54% and an ROE of 14.70%.
• Stock Market Returns: Certain companies within the sector have delivered substantial returns to investors. PTC Industries Ltd saw its share price surge from ₹368.58 on November 18, 2020, to ₹2,915.35 on November 15, 2022, marking an increase of 691% over two years. An investment of ₹1 lakh in the company’s shares during this period would have grown to ₹7.91 lakh.
• Competitive Pressures: The influx of inexpensive steel imports, particularly from China, has intensified competition for Indian steel producers. In December 2024, India’s finished steel imports from China reached a record high, leading to a 30-35% decline in sales for some domestic companies. This situation has prompted industry leaders to advocate for import restrictions to protect local manufacturers.

The Indian castings and forgings industry is set for long-term growth, driven by increasing demand from key sectors such as automotive, defence, and infrastructure. While challenges like raw material price volatility and global competition persist, government initiatives and technological advancements continue to provide expansion opportunities.

When Castings & Forgings Stock Prices Go Up?

Casting & Forgings Stock Prices go up mainly due to 4 reasons. The reasons are Earnings Report, Industry Trends, Economic Conditions and Market Sentiments.

• Earnings Reports: Companies’ financial performance, as detailed in their earnings reports, significantly impacts stock prices. Bharat Forge Ltd experienced a 65.90% profit growth over the past three years, which positively influenced its share price. ​
• Industry Trends: The overall health and growth projections of the castings and forgings industry affect investor confidence. The Indian metal forging market was valued at USD 4.43 billion in 2022 and is projected to reach USD 9.75 billion by 2030, indicating a CAGR of 9.8%. Such growth trends can bolster stock valuations within the sector. 
• Economic Conditions: Macroeconomic factors, including GDP growth, inflation rates, and trade policies, play a crucial role. India’s consideration of a temporary tax of 15%-25% on Chinese steel imports aims to protect domestic producers from unfair trade practices, which could stabilise or enhance the performance of local castings and forgings companies.
• Market Sentiments: Investor perceptions and market dynamics can lead to stock price fluctuations. Concerns over increased imports and global trade policies have previously led to apprehensions among Indian steelmakers about future profitability and market share.

Global players are increasingly setting up manufacturing bases in India due to cost advantages and government incentives under the Production Linked Incentive (PLI) scheme. The Indian automotive sector, which consumes over 60% of the country’s forging output, is expected to reach $300 billion by 2030, significantly boosting demand for high-quality forged components.

When Castings & Forgings Stock Prices Go Down?

Casting & Forgings Stock Prices go down mainly due to 3 reasons. The reasons are Economic Downturns, Interest Rate Hikes, Sector-Specific Issues and Profit Taking.

• Economic Downturns: During periods of economic slowdown, reduced industrial activity leads to decreased demand for castings and forgings, negatively impacting company revenues and stock prices. In February 2025, Ramkrishna Forgings experienced a 5.28% stock decline amid broader market stability. ​
• Interest Rate Hikes: Rising interest rates increase borrowing costs for companies, potentially hindering expansion plans and profitability. This can lead to cautious investor sentiment and a decline in stock valuations within the castings and forgings sector.​
• Sector-Specific Issues: The transition to electric vehicles (EVs) poses a challenge for the forging industry, with projections indicating a potential 60% decline in the forging and components sector over the next few years due to reduced demand for traditional automotive components. ​
• Profit Taking: After periods of stock appreciation, investors may sell shares to realise gains, leading to short-term price declines. This profit-taking behaviour can cause temporary dips in stock prices, even amidst positive long-term prospects.

The shift towards lightweight materials in the aerospace and automotive sectors is pushing companies to innovate, impacting traditional forging demand. While short-term setbacks like rising interest rates and sector-specific disruptions may affect stock performance, long-term prospects remain strong with increasing defence and infrastructure investments.