Top 5 precision engineering stocks in India to add to your watchlist

With investors now hunting for companies riding this wave, here are fiveprecision engineering stocks worth tracking.

These stocks are filtered using Equitymaster’s stock screener –Best Precision Engineering Stocks in India.

#1 KPIT Technologies

The company provides embedded software and product engineering services to automotive companies.

It provides solutions for autonomous driving, connected vehicles, vehicle engineering and design, electric and conventional powertrains, and integrated diagnostics.

The company has development centres in Europe, the US, Japan, and China. Its approach involves using algorithms and semantic annotation to build perception systems that accurately capture and interpret the road, especially in complex urban environments.

KPIT also offers various solutions in integrated electrification, new-generation vehicle platforms, and digital twin technologies, further emphasizing the precision required for these advanced systems.

The company, in May 2025, approved the 100% acquisition of four Caresoft entities. The transaction will be completed over a period of three years.

Caresoft Global will restructure its business into two segments, benchmarking and engineering solutions. KPIT will acquire the carved-out engineering solutions business globally, which is primarily focused on the off-highway, truck and bus segments, as well as manufacturing solutions.

Apart from this, it has established a new technology centre in Gothenburg, Sweden.

Going forward, the company is working on three key fronts to meet BS VI norms, making internal combustion engines cleaner and more efficient, developing battery-powered electric vehicles, and advancing fuel cell technology.

#2 Unimech Aerospace

The high-precision engineering solutions company handles some of the most complex manufacturing needs across industries like aerospace, defence, energy, and semiconductors.

Unimech Aerospace takes care of everything from machining and fabrication to assembly and testing. Whether you’re building exactly according to a blueprint (‘build to print’) or creating parts to specific requirements (‘build to specification’), they have you covered.

It’s known for making tools and components such as mechanical assemblies, electro-mechanical systems, and key parts for aero engines and airframes.

The product range includes aero-engine tooling, airframe tooling, precision missile components, and advanced subsystems like the Rocker Arm for HMC CDA.

In FY25, the company made significant strides by focusing on important sectors like nuclear, defence, and semiconductors, boosting its capacity by an impressive 240% and adding seven new customers.

Unimech is also evolving beyond its traditional role as a vendor, positioning itself as a critical manufacturing partner across several strategic industries.

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Unimech Aerospace Share Price Since Listing

#3 MTAR Technologies

MTAR Technologies is a key name in India’s precision engineering space. It is known for manufacturing mission-critical components and assemblies with extremely tight tolerances, as precise as 5-10 microns. These high-precision parts are used in projects of national importance across nuclear, space, defence, and clean energy sectors.

Founded in 1970, MTAR has steadily evolved into a technology-driven company with advanced manufacturing facilities and a strong track record of supporting India’s most strategic programs.

The company plays a vital role in the Indian civil nuclear power program, the Indian Space Research Organisation (ISRO), and the Defence Research and Development Organisation (DRDO), while also serving global players like Bloom Energy, Rafael, and Elbit.

MTAR’s product portfolio includes liquid propulsion engines for the GSLV Mark III, base shroud assemblies and airframes for the Agni missile series, actuators for the LCA (Light Combat Aircraft), fuel cell power units, and critical reactor components, etc.

The company has also developed import-substitute products like high-precision ball screws and water-lubricated bearings, which are crucial for nuclear and defence applications.

With this wide variety of complex product portfolios, MTAR has created a niche for itself in the Indian precision engineering industry. It’s one of the top three suppliers that caters to precision engineering requirements of Indian nuclear, defence, and space sectors.

#4 Harsha Engineers

The company is the largest manufacturer of precision bearing cages in the organised sector in India in terms of capacity and operations.

It’s also among the leading manufacturers of precision bearing cages in the world with a market share of approximately 5-6% in the organized segment of the global brass, steel, and polyamide bearing cages in terms of revenue.

The company offers a range of bearing cages made from brass, steel, and polyamide, as well as precision components, complex stamped components, brass castings, and bronze bushings.

Further, the company has the expertise to design and develop advanced tooling in-house which enables us to manufacture complex products.

In April 2025, it signed a letter of intent with a leading multinational engaged in manufacturing AC compressors. Under this agreement, it will supply stamping products for a period of five years. The estimated contract size is ₹180 million (m) per annum.

#5 Gala Precision Engineering

Last on the list is Gala Precision Engineering.

Gala Precision Engineering Limited is a leading precision component manufacturer specialising in technical springs and fastening solutions.

Their product offerings include disc and strip springs (DSS), such as wedge lock washers, coil and spiral springs (CSS), and special fastening solutions (SFS).

These components are essential for original equipment manufacturers (OEMs), tier 1 suppliers, and channel partners across various industries.

These include renewable energy (wind turbines and hydropower plants), industrial sectors (electrical, off-highway equipment, infrastructure, general engineering), and mobility (automotive and railways).

The company operates through two main business divisions: the springs technology division, which produces disc spring systems (DSS) such as wedge lock washers (WLW) and circlip safety systems (CSS), and the special fasteners segment (SFS), which manufactures anchor bolts, studs, and nuts.

It has established a strong global presence, supplying technical springs and high-tensile fasteners to customers in Germany, Denmark, China, Italy, Brazil, the US, Sweden, and Switzerland.

Going forward, the company plans to expand its existing facility in Wada and establish a new plant in Chennai.

Conclusion

With the global precision engineering machines market projected to reach US$ 23.24 billion (bn) by 2032, growing at a CAGR of 6.4%, the momentum in this sector is undeniable.

India is well-positioned to capitalise on this trend thanks to a combination of key advantages: a large pool of skilled engineers, cost-effective manufacturing, supportive government policies, and a strong push for self-reliance under theAatmanirbhar Bharat initiative.

Global companies are increasingly looking to India for high-quality, reliable manufacturing, and homegrown firms are rising to the challenge—especially in sectors like defence, aerospace, semiconductors, and clean energy.

For investors, this isn’t just a short-term play. It’s a long-term opportunity backed by real demand, government support, and growing global interest. If you’re looking to tap into India’s industrial growth story,precision engineering stocks are definitely worth a closer look.

However, it’s important to conduct thorough research on financials and corporate governance before making investment decisions, ensuring they align with your financial goals and risk tolerance.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated fromEquitymaster.com