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HomeMarket NewsTop Stock Picks: L&T, HAL feature in CLSA's list for industrials; BHEL least preferred
The brokerage said that the government has been awarding multi-billion-dollar, multi-decade infrastructure contracts, which are expected to provide long-term revenue visibility for companies in the space.
By Meghna Sen March 5, 2026, 12:13:31 PM IST (Published)
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Brokerage firm CLSA remains constructive on India's capital goods space, saying that an improving private capital expenditure momentum and rising global order wins as key factors supporting its growth thesis for the sector.
The brokerage said that the government has been awarding multi-billion-dollar, multi-decade infrastructure contracts, which are expected to provide long-term revenue visibility for companies in the space.
Indian engineering and construction companies are also increasingly securing orders in overseas markets, particularly in Europe.
According to CLSA, firms such as Larsen & Toubro have been leading this global push, strengthening the sector’s growth outlook.
At the same time, easing input costs are improving the margin outlook for capital goods companies.
CLSA added that the sector's backlog visibility remains strong, with the book-to-bill ratio standing at about 3.8 times, providing healthy revenue visibility over the medium term.
Within its coverage, CLSA's top picks include Larsen & Toubro, Hindustan Aeronautics Limited, NCC Limited, Bharat Electronics Limited, and IRB Infrastructure Developers.
The brokerage is least positive on Bharat Heavy Electricals Limited within the sector.
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