To counter the pressure, players in this space have ramped up investments in automation, digitization, and supply chain diversification—moves that are gradually mitigating tariff-induced strain.
Market metrics reflect this resilience: firms in the sector average a market cap of ₹7,807 crore, a P/E ratio around 55, and an ROE exceeding 20%.
Looking ahead, the sector shows moderate bullishness, buoyed by tech-driven efficiency and evolving global trade realignments. With continued focus on automation, R&D, and supply chain flexibility, General Industrials is poised for steady, long-term growth.
Also read: This textile star’s rally masks a margin meltdown. Should investors be worried?
Sector dynamics
- Consolidation for scale: Mergers and alliances help firms cut costs, streamline operations, and strengthen market position.
- Strategic shift: Companies are reshaping supply chains and forming tech-focused partnerships to boost efficiency.
- Premium push & product mix: Focus on high-end offerings and diversified portfolios to attract new customers and reduce risk.
- Digital drive: Automation and digital tools are modernising operations, making manufacturing smarter and leaner.
Cost Savings and price stabilisation
- Lean operations: Firms are cutting costs through logistics optimization and better supplier deals, saving 5–7% annually.
- Smart financing: Improved credit access for MSMEs and reinvestment of savings are fuelling tech and innovation upgrades.
- Price discipline: Strategic pricing helps protect margins and maintain product quality amid inflation pressures.
Challenges: Demand revival, pricing trends, and growth prospects
- Demand divergence: Urban demand is picking up pace, but rural markets remain sluggish, complicating demand projections.
- Margin pressure: Volatile input costs and inflation are squeezing margins, prompting firms to adopt aggressive yet strategic pricing.
- Trade & policy risks: Tariffs like the 26% duty on certain exports and shifting geopolitics are raising costs and operational uncertainty.
- Growth tailwinds: Despite headwinds, investments in automation, digitisation, and product premiumisation are setting the sector up for long-term gains.
Based on the above pointers I have selected the following stocks:
Shaily Engineering Plastics Ltd
CMP: ₹2,016.20 | Target: ₹2,250–2,350 | Stop Loss: ₹1,850 | Time Horizon: 1 Month
The stock presents a positive setup and can be considered for long positions at current levels or on dips towards ₹1,900, with a stop loss below ₹1,850. Upside potential lies in the ₹2,250–2,350 range over the next month.
Elgi Equipments
CMP: ₹535.20 | Target: ₹615 | Stop Loss: ₹490 | Time Horizon: 1 Month
The technical setup indicates potential for a near-term rally. Long positions may be considered above current levels and on dips toward ₹505, with a stop loss below ₹490. The stock could test levels of ₹615 over the next month.
Shaily Engineering Plastics Ltd
Shaily Engineering Plastics Ltd is adapting well to the evolving General Industrials landscape by focusing on supply chain partnerships, collaborative innovation, and operational efficiency. With global trade uncertainties, including the reimposed 26% Trump-era tariffs on Indian exports, the company is prioritizing agility and premium product strategies to manage rising costs and sustain global competitiveness.
These efforts are reflected in its strong Q4 FY25 results. Shaily reported a 27.7% year-on-year rise in total income to ₹217.83 crore, with operating profit up 75.7% at ₹43.39 crore. Net profit grew 47.9% to ₹28.59 crore, while EPS improved to ₹6.20. The performance highlights the company’s resilience and effective execution amid external pressures.
Shaily Engineering Plastics has held firm through the choppy trends of the past five months, forming higher lows with strong volume support despite persistent market volatility. The stock found solid support near the ₹1,400 level while facing stiff resistance around ₹1,950. This wide consolidation created large swing-based moves, but as broader market sentiment began to improve in late April 2025, the stock staged a notable recovery, drawing increased interest from retail investors.
Also read: Strong domestic demand, firm steel prices to keep SAIL in focus
Recent momentum in the industrials sector has further fueled participation, with steady volumes helping the stock break past its key resistance zone. The breakout, marked by a strong bullish candle, suggests renewed strength and upside potential. With positive technical cues, traders may consider going long above the current market price or on dips toward ₹1,900, with a stop-loss below ₹1,850. The stock could potentially rally to the ₹2,250– ₹2,350 range over the next month.
ELGI EQUIPMENTS
Elgi Equipments Ltd, a leading manufacturer of air compressors and related equipment, is realigning its operations to adapt to shifts in the General Industrials sector. As consolidation through mergers, acquisitions, and strategic partnerships gains momentum among peers, Elgi is focused on scaling up operations and boosting efficiency. This strategy aims not only to strengthen its domestic foothold but also to expand its international presence. Additionally, the company is diversifying its portfolio to cater to premium segments alongside its traditional customer base, enhancing brand value and pricing power.
The company’s Q4 FY25 results reflect this resilience amid external challenges. Consolidated revenue rose about 15% year-on-year to nearly ₹993 crore, while profit after tax jumped approximately 34%, from ₹76 crore in Q4 FY24 to ₹102 crore in Q4 FY25.
These gains come despite headwinds like the 26% tariff on certain Indian exports imposed under Trump-era policies, which have complicated cost structures and competitive positioning. Elgi’s proactive pricing and cost management have helped cushion these impacts effectively.
From a technical perspective, the stock faced a sharp decline following a stock split that reversed gains made since March 2024. After peaking in December 2024, prices gradually slid to form a double bottom near ₹100, establishing a strong base. A robust Q4 performance has since propelled a sharp rebound. Volume is steadily increasing, accompanied by rising momentum indicators such as the Directional Momentum Index, signaling potential further upside. Last Friday’s long-bodied candle indicates a breakout above the key resistance zone near ₹150, suggesting positive momentum.
The last six months have been challenging for Elgi Equipments, with the stock experiencing a sharp 40% decline. This drop was largely driven by profit booking trends that affected the broader Mid and Small Cap segments. However, as market volatility eased in March, the stock found support and began a recovery phase. During this rebound, the price formed a classic double bottom pattern, signaling renewed buying interest as geopolitical tensions started to ease.
Technically, this recovery has pushed the stock price above the Ichimoku Cloud, a positive indicator of trend strength. Last Friday’s strong move above the neckline of the double bottom formation further confirmed this bullish shift. The stock also broke through a key resistance zone near ₹500, adding to the upside momentum. With the positive Directional Index (+DI) climbing and the ADX confirming trend strength, the outlook remains bullish over the coming weeks.
For investors, this presents an attractive opportunity to initiate long positions above the current market price (CMP), with a potential entry on dips toward ₹505. A prudent stop-loss could be placed below ₹490, aiming for a target price near ₹615 within the next month.
Elgi Equipments remains cautiously optimistic about FY26. Its strategic focus on consolidation, premium product development, and supply chain agility—alongside targeted market expansion in regions such as Europe, Brazil, and Australia—positions the company well to manage uneven demand recovery and pricing pressures. These initiatives should help Elgi navigate challenges while capitalizing on growth opportunities.
Also read: Mint Explainer: Why has Sebi barred Arshad Warsi from markets again?
Conclusion
The general industrials sector is demonstrating notable resilience and adaptability. Despite headwinds like renewed tariffs, rising input costs, and uneven demand across urban and rural markets, companies are strategically realigning their operations.
Through consolidation, mergers, acquisitions, and a shift toward premiumised, diversified product offerings, firms are effectively countering external pressures. The sector’s ability to adapt to changing global trade dynamics and embrace innovation points to a promising outlook for sustained growth, even as short-term challenges persist.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
