Defence stocks in India: India’s military forces are the largest in the world. It requires significant demand for equipment and technology. The defence sector is involved in developing and manufacturing different missiles, fighter jets, and other equipment required by military forces. The defence sector is the backbone of the country and indirectly all other sectors depend on it. If the country’s defence sector is strong and evolving then foreign investors will invest their money as they are confident about the country’s growth.
India Government trying to strengthen the defence of the country by launching different schema like Make in India and allocating more budget to the defence sector. Now countries like Russia, the US, Iran and Ireasel are also exporting the defence equipment from India.In this article, I am sharing the best defence stock in India to watch in 2024.
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Read: Top Liquor Stocks in India
Defence Stocks in India #1– Hindustan Aeronautics
Hindustan Aeronautics Limited (HAL) is an Indian public sector company. Its main focus is in the aerospace and defence sectors. It was established in the year 1940. It is the oldest and largest aerospace company in the world. HAL has 11 dedicated Research and development (R&D) centres and their main headquarters is in Bangalore.
HAL have a diverse portfolio which includes fighter jets, Helicopters, and Aero engines. The company is continuously expanding its product range and now the prime focus is on Advanced fighter jets like LCA Tejas Mk II. Along with the manufacturing they are also involved in the repair and overhaul of Indian military aircraft.
The market cap of Hindustan Aeronautics is ₹1,86,451 Cr, making it is Large-Cap company. Currently, its P/E Ratio(TTM) is 30.88. Its share has delivered a massive return of around 110% return in one year.
Defence Stocks in India #2– MTAR Technologies
MTAR Technologies is a leading Indian engineering company. They work in critical sectors like civilian nuclear, defence & aerospace, space, clean energy, etc. It was established in the year 1970. With the evolving market demands MTAR is actively focusing on developing new products and services.
The market cap of MTAR Technologies is ₹7,115 Cr, making it is Small-Cap company. Currently, its P/E Ratio(TTM) is 40.00. Its share has delivered a massive return of around 45% return in one year.
Defence Stocks in India #3– Cochin Shipyard
Cochin Shipyard Limited is a leading Indian public sector company. They are a shipbuilding and ship repair company in India. It was established in the year 1972 as the first greenfield shipyard in India. Now Cochin Shipyard is the largest shipbuilding and ship repair facility in India.
So far they have constructed over 250 vessels, including double-hulled oil tankers, platform supply vessels, high-speed passenger ferries, and naval offshore patrol vessels and repaired over 850 vessels of various types, including Navy and Coast Guard ships. In future, they are planning to increase exports to diversify their market reach by constructing more complex vessels, including container ships and LNG carriers.
The market cap of Cochin Shipyard is ₹17,190 Cr, making it is Mid-Cap company. Currently, its P/E Ratio(TTM) is 40.00. Its share has delivered a massive return of around 105% return in one year.
Defence Stocks in India #4– Bharat Electronics
Bharat Electronics is an Indian public sector company and holds the prestigious “Navratna” status for the company’s exceptional financial performance and operational efficiency. It is another aerospace and defence electronics. It was established in the year 1954.
Bharat Electronics is involved in the development of radars for air defence, ground surveillance, and naval applications. Bharat Electronics plays a crucial role in the development of missiles like Agni and Akash. Apart from India they also exported products to over 50 countries like Russia, the US and Israel. In future, they plan to focus on artificial intelligence, cyber security, and autonomous systems. They are actively collaborating with international partners to become a global leader in defence electronics.
The market cap of Bharat Electronics is ₹1,26,495 Cr, making it is Large-Cap company. Currently, its P/E Ratio(TTM) is 38.48. Its share has delivered a massive return of around 70% return in one year.
Defence Stocks in India #5 Paras Defence and Space Technologies
Paras Defence and Space Technologies is involved in developing and manufacturing command and control systems, radar systems, electronic warfare Systems, and night vision devices. It was established in the year 1954 and its main headquarters is in Ghaziabad, Uttar Pradesh.
Paras Defence and Space Technologies is known for investing in R&D and new-age technologies like artificial intelligence, cyber security and autonomous systems.
The market cap of Paras Defence and Space Technologies is ₹2,882.30 Cr, making it is Small-Cap company. Currently, its P/E Ratio(TTM) is 40.00. Its share has delivered a return of around 18% return in one year.
Conclusion
Now Government is focusing on the defence sector and trying to make the equipment required by military forces in our own country only. The government is also increasing the budget allocation year by year. Investors should keep an eye on the defence sector as some of the stocks are available at dirt-cheap valuations. Please research and consult your financial advisor before investing in any stock. Whatever I have discussed in this article is just for knowledge purposes.
