Best Manufacturing Stocks in India

As per Equitymaster's Stock Screener, here is a list of top manufacturing companies in India right now...

• #1 DIXON TECHNOLOGIES
• #2 LUMAX AUTO TECHNO
• #3 BOSCH
• #4 AUTOMOTIVE AXLES
• #5 ADF FOODS

These companies have been ranked as per their PE (Price to Earnings) ratio. Generally, speaking, high PE stocks are considered to be expensive. And low PE stocks are said to be cheap.

Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.

Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.

Two commonly used financial ratios used in the valuation of stocks are -

Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.

Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.

The details of listed manufacturing companies can be found on the NSE and BSE website.

For a curated list you can check out our list of manufacturing stocks.