Defence Stocks

Defence stocks represent companies involved in national security, manufacturing weapons, and aerospace technology. These firms benefit from government contracts and tend to be resilient during economic downturns.

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List of Best Defence Stocks to Invest in 2024

Name	Price	Analyst Rating	M Cap	Target Price	Alpha	1Y Return	3Y Return	5Y Return	PE	Industry PE	PB	Beta	Div Yld	Net Profit Qtr	Net Profit QoQ %	Net Profit YoY %	Net Profit 3Y Change %	Rev Qtr (in Cr)	Rev QoQ (in %)	Rev 1Y change %	Rev 3Y change %	Profit Mar Qtr	Profit Mar QoQ	Profit Mar 1Y Change%	Profit Mar 3Y Change%	Sector	M Cap	ROE	ROCE	EPS	Volume
Bharat Electronics Ltd	₹309.90	BUY	LARGE CAP	304.26	113.26%	139.25%	389.92%	816.82%	55.31	78.94	5.25	1.75	1.85%	1785.66 Cr	110.54%	24.88%	64.02%	8564.08	105.76%	15.4%	36.76%	16.58%	2.32%	8.22%	19.94%	Consumer Cyclical	220353.28	23.52%	28.13%	4.02	24509475
Solar Industries India Ltd	₹10,966.80	BUY	MID CAP	10308.5	145.71%	166.08%	541.54%	780.67%	110.34	78.94	33.89	0.89	0.1%	242.71 Cr	9.36%	7.9%	203.83%	1610.71	12.7%	-12.32%	141.27%	14.42%	-2.97%	23.06%	25.93%	Basic Materials	92251.44	28.99%	34.17%	96.71	205304
Bharat Dynamics Ltd	₹1,412.50	BUY	MID CAP	1511.17	111.75%	134.76%	599.13%	836.15%		78.94	5.64	1.17	NA													Industrials	51569.85	11.28%	9.32%		1159720
Cochin Shipyard Ltd	₹2,467.60	HOLD	MID CAP	895	591.51%	622.87%	1224.38%	1270.3%	82.66	78.94	1.41	1.37	2.1%	258.88 Cr	5.93%	-45.97%	-51.79%	1286.05	21.74%	-25.9%	-30.91%	12.89%	-12.98%	-27.09%	-30.22%	Industrials	64763.91	6.57%	8.59%	11.58	1016962
Garden Reach Shipbuilders & Engineers Ltd	₹2,212.75	HOLD	SMALL CAP	738.5	251.84%	271.92%	977.22%	1625.19%		78.94	3.69	1.52	NA													Industrials	25888.75	17.08%	19.79%		1406438
BEML Ltd	₹4,483.00	BUY	SMALL CAP	4868	124.3%	148.65%	242.54%	397.49%	66.23	78.94	2.19	1.72	0.8%	256.8 Cr	432.78%	22.79%	147.94%	1513.65	44.57%	-10.11%	28.87%	4.05%	268.52%	36.6%	92.39%	Industrials	18657.43	6.75%	8.36%	37.8	344989
Data Patterns (India) Ltd	₹3,296.80	HOLD	SMALL CAP	3023.4	45.92%	69.24%	349.53%	349.53%		78.94	10.24	1.07	NA													Aerospace & Defence	19000.68	14.59%	18.98%		488160
Zen Technologies Ltd	₹1,532.45	BUY	SMALL CAP	1887.5	107.03%	133.18%	1460.13%	2602.78%	94.16	78.94	10.77	0.94	0.06%	37.59 Cr	25.93%	1814.56%	-14.77%	141.39	42.07%	213.76%	46.59%	22.83%	-11.36%	510.19%	-41.86%	Technology	12266.26	12.32%	17.67%	6.28	550728
Astra Microwave Products Ltd	₹893.55	BUY	SMALL CAP	935.25	120.6%	141.22%	414.1%	1003.44%	70.47	78.94	2.98	1.58	0.71%	54.4 Cr	25.4%	84.39%	58.56%	353.96	53.22%	8.67%	74.55%	8.56%	-18.15%	69.68%	-9.16%	Communication Services	8517.52	12.34%	16.65%	8.06	415603
Larsen & Toubro Ltd	₹3,679.90	BUY	LARGE CAP	3949.15	17.31%	36.77%	126.54%	159.97%	37.46	119.98	8.05	1.41	0.9%	3440.11 Cr	-31.25%	23.33%	20.63%	55119.82	-17.83%	20.6%	62.61%	7.04%	-16.33%	2.26%	-25.81%	Real Estate	497578.15	13.69%	15.37%	113.26	2617506
Mishra Dhatu Nigam Ltd	₹495.90	HOLD	SMALL CAP	480	30.62%	51.34%	143.08%	310.1%	98.37	78.94	2.69	1.64	NA	46.34 Cr	262.03%	-11.53%	-1.17%	393.08	68.64%	1.45%	22.31%	17.92%	114.68%	-12.79%	-19.2%	Industrials	9011.99	12.59%	10.68%	8.34	967322
MTAR Technologies Ltd	₹1,913.55	BUY	SMALL CAP	1793	-33.82%	-8.67%	31.85%	75.89%	104.39	78.94	7.83	0.77	NA	4.87 Cr	-53.4%	69.9%	230.2%	142.97	20.77%	78.18%	168.4%	18.03%	-61.41%	-4.64%	23.03%	Industrials	5856.78	18.25%	22.44%	33.62	168371
Paras Defence and Space Technologies Ltd	₹1,304.55		SMALL CAP		61.82%	86.75%	156.85%	156.85%	153.69	78.94	4.94	1.37	NA	9.6 Cr	63.82%	32.72%	82.81%	79.69	24.17%	21.84%	51.27%	16.16%	31.94%	8.93%	20.85%	Industrials	4932.92	10.16%	14.56%	9.22	103129
DCX Systems Ltd	₹392.15	BUY	SMALL CAP	494.5	15.84%	35.44%	24.14%	24.14%	51.33	78.94	2.49	1.41	NA	32.95 Cr	146.26%	9.75%		746.2	276.56%	13.73%		5.74%	-34.6%	-3.5%		Aerospace & Defence	4264.99	20.95%	13.12%	7.45	296359
Apollo Micro Systems Ltd	₹120.74		SMALL CAP		88.39%	119.79%	961.07%	1231.78%	94.04	78.94	1.7	0.62	0.09%	12.93 Cr	29.82%	28.18%	33.76%	135.44	48.28%	22.34%	21%	6.3%	-12.45%	4.77%	10.55%	Technology	3775.64	6.07%	11.48%	0.902	5188766
Hindustan Aeronautics Ltd	₹4,905.40	BUY	LARGE CAP	5117.73	127.79%	150.35%	774.33%	1329.09%	42.39	78.94	3.88	1.94	2.01%	4308.68 Cr	241.55%	14.72%	102.17%	14768.75	143.66%	9.37%	25.56%	21.64%	40.18%	4.89%	61.01%	Industrials	323021.67	27.17%	18.82%	87.1404357021785	1491787
Ideaforge Technology Ltd	₹828.55		SMALL CAP		-56.26%	-32.02%	-38.7%	-38.7%	72.43	78.94	4.45	0.89	NA	10.33 Cr	-30.2%	41.51%	-409.43%	102.3	12.54%	68.81%	804.38%	14.42%	-37.98%	-16.17%	-134.21%	Aerospace & Defence	3404.61	9.69%	12.49%	10.56	833183
NIBE Ltd	₹1,981.95		SMALL CAP		356.22%	354.14%	2677.81%	28972.49%	135.73	78.94	6.46	0.09	0.03%	10.43 Cr	136.51%			152.17	142.73%			1.51%	-2.57%			Consumer Cyclical	2580.87	10.45%	14.67%		17447
Rossell India Ltd	₹609.20		SMALL CAP		12.39%	40.37%	218.48%	1529.61%	182.06	78.94	3.18	1.38	0.17%	-14.89 Cr	-859.69%	-7.86%	11420.83%	63.38	-42.28%	18.24%	78.24%	7.82%	-1416.1%	-22.08%	6363.53%	Industrials	2312.87	10.27%	10.03%	7.33	77078
CFF Fluid Control Ltd	₹843.15		SMALL CAP		177.54%	171.35%	337.63%	337.63%		78.94		0.55	NA													Aerospace & Defence	1566.01	50.9%	34.23%		102000
Taneja Aerospace & Aviation Ltd	₹603.00		SMALL CAP		124.64%	146.12%	1015.28%	2486.96%	133.71	78.94	2.97	1.33	3.07%	2.52 Cr	0.8%	100.91%	88.18%	8.19	9.93%	2.12%	-1.21%	34.49%	-8.31%	96.75%	90.49%	Industrials	1517.28	10.07%	14.21%	4.41	28475
Sika Interplant Systems Ltd	₹2,796.50		SMALL CAP		251.7%	276.72%	462.96%	1561.28%	60.14	78.94	2.74	0.43	0.72%	6.05 Cr	27.91%	-46.86%	25.57%	37.16	42.92%	-39.04%	-4.4%	14.65%	-10.51%	-12.82%	31.35%	Industrials	1164.35	11.01%	14.83%	20.73	5367
Krishna Defence & Allied Industries Ltd	₹762.90		SMALL CAP		261.45%	289.49%	822.67%	822.67%		78.94	4.22	1.13	NA													Aerospace & Defence	995.81	16.31%	15%		44500
Mazagon Dock Shipbuilders Ltd	₹4,858.15	HOLD	MID CAP	2224	137.09%	160.61%	1782.73%	2724.37%	50.57	-375.68	3.2	1.74	2.41%	626.85 Cr	5.97%	85.77%	177.36%	3103.65	31.37%	36.52%	59.58%	13.36%	-19.34%	36.07%	73.81%	Industrials	97950.75	28.61%	32.68%	51.87	970450

What are Defence Stocks?

Defence stocks represent companies involved in the production, development, and distribution of military equipment, technology, and services. These stocks offer investors a chance to participate in industries crucial for national security. With a focus on resilience, innovation, and global demand, investing in defence stocks can provide stability and growth potential to portfolios.

Overview of Best Defence Stocks in India as per Analyst Ratings and Market Capitalisation

In the domain of defence shares in India, several key players have emerged, offering diverse investment options. Here is a list of the top defence stocks that are recommended for investment.

Bharat Electronics

Founded in 1954, Bharat Electronics Limited (BEL) is a Navratna Public Sector Undertaking (PSU) specialising in manufacturing advanced electronic products for the Indian Defence. BEL produces a range of defence equipment and systems, including defence communication devices, electronic warfare systems, land-based radars, naval systems, C4I systems, weapon systems, and avionics.

BEL's non-defence operations cover various sectors such as cybersecurity, e-mobility, railways, e-governance systems, homeland security, civilian radars, turnkey projects, components or devices, and telecom and broadcast systems.

The company has subsidiaries and joint ventures with local and international firms, providing a wide array of products like electronic voting machines, radar transmitters, sonar-based technology, and ballistic missile systems.

Hindustan Aeronautics Limited (HAL)

Established in December 1940, Hindustan Aeronautics Limited (HAL) is a major aerospace and defence company based in Bangalore, India. HAL is involved in the design, development, manufacture, repair, overhaul, upgrade, and service of various products, including aircraft, aero engines, avionics, helicopters, accessories, and aerospace structures.

HAL's product lineup includes various aircraft such as the HAWK, Su-30 MKI, Light Combat Aircraft (LCA), Dornier, Intermediate Jet Trainer (IJT), and HTT-40. The company also manufactures helicopters like the Dhruv, Chetak, Cheetah, Lancer, Light Combat Helicopters (LCH), Cheetah, and Light Utility Helicopters (LUH).

Additionally, HAL offers inertial navigation systems, auto stabilisers, laser range systems, flight data recorders, radio navigation equipment, communication equipment, and airborne secondary radars.

Bharat Dynamics Limited (BDL)

Founded on July 16, 1970, Bharat Dynamics Limited (BDL) is a PSU under the Ministry of Defence, headquartered in Hyderabad, Telangana. BDL serves as the manufacturing base for guided missile systems and related equipment for the Indian Armed Forces. The company operates four manufacturing units, with three located in Telangana (Hyderabad, Bhanur, and Ibrahimpatnam) and one in Andhra Pradesh (Visakhapatnam).

BDL is among the few companies globally with advanced facilities for producing and supplying guided missiles, underwater weapons, airborne products, and other allied defence equipment. The company also provides product life cycle support and refurbishment or life extension services for vintage missiles.

Mazagon Dock Shipbuilders

Located in Mumbai, Mazagon Dock Shipbuilders is a leading shipbuilding yard in India. Established as a private company in 1934, it came under government control in 1960. Since then, it has constructed 802 vessels, including 28 warships ranging from advanced destroyers to missile boats and seven submarines. The company specialises in constructing and repairing ships, submarines, and other engineering products.

MDL has also delivered various types of ships such as cargo ships, supply vessels, passenger ships, water tankers, multipurpose support vessels, tugs, and dredgers for customers in India and abroad. Additionally, MDL has fabricated and supplied jackets, main decks of wellhead platforms, jack-up rigs, and more.

Cochin Shipyard

Incorporated in 1972, Cochin Shipyard Limited (CSL) has become a leading player in the Indian shipbuilding and ship repair industry over the past three decades. CSL can construct and repair the largest vessels in India. The company is involved in building various types of vessels and providing repair and refitting services, including upgrades, periodic layup repairs, and extending the lifespan of ships.

Cochin Shipyard’s shipbuilding products include defence vessels such as aircraft carriers, hydrographic survey vessels, fast patrol vessels, offshore patrol vessels, and pollution control vessels. It also offers ship repair services for both defence and commercial ships, marine engineering training, and various other facilities.

FAQ's

Resilience: Defence spending tends to remain steady or even increase during economic downturns, making these stocks potentially less volatile than cyclical companies.
Stable Income: Defence companies often prioritise consistent dividend payouts, offering investors a regular stream of income.
Growth Potential: Advancements in technology and increasing global security concerns can lead to growth opportunities for defence firms.
Strategic Importance: Governments prioritise a strong defence sector, potentially leading to continued support and investment in these companies

Geopolitical Dependence: Defence spending can fluctuate based on global political climates and international relations.
Technological Disruption: Rapid advancements in military technology can make certain defence products obsolete, impacting profitability.
Public Scrutiny: The defence industry can sometimes face public criticism, potentially leading to negative press and stock price declines.
Lower Growth Potential: Defence stocks may offer slower growth compared to companies in high-growth sectors.

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Government Contracts: Look for companies with a strong track record of securing lucrative government contracts.
Diversification: Consider companies across various defence sub-sectors (aerospace, weapons systems, etc.) to mitigate risk.
Financial Health: Evaluate a company's financial stability, profitability, and debt levels.
Innovation: Companies investing in cutting-edge defence technologies can be positioned for future growth.

Several factors can impact the performance of defence stocks, including government defence budgets, geopolitical tensions, technological advancements, and contracts or orders from domestic and international clients. Company-specific factors such as financial health, management, and production capabilities also play a significant role.

Defence stocks can be relatively stable due to consistent government spending on defence. However, like any investment, they come with risks, such as changes in government policy, delays in contract execution, and geopolitical changes. It is essential to research and consider these factors before investing.

You can invest in defence stocks in India by opening a trading account with INDmoney and buying shares through the stock exchange. Alternatively, you can invest through mutual funds or exchange-traded funds (ETFs) that focus on the defence sector.

Government policies significantly impact defence stocks. Policies that increase defence budgets, promote local manufacturing, and streamline procurement processes can positively affect these stocks. Conversely, budget cuts or restrictive policies can have a negative impact.

Check More Stocks

Name	Price	M Cap	Alpha	1Y Return	3Y Return	5Y Return	PE	Industry PE	PB	Beta	Net Profit Qtr	Net Profit QoQ %	Net Profit YoY %	Net Profit 3Y Change %	Rev Qtr (in Cr)	Rev QoQ (in %)	Rev 1Y change %	Rev 3Y change %	Profit Mar Qtr	Profit Mar QoQ	Profit Mar 1Y Change%	Profit Mar 3Y Change%	Sector	M Cap	ROE	ROCE	EPS	Volume
Adani Power Ltd	₹712.65	LARGE CAP	143.22%	172.09%	609.75%	1005.25%	13.47	29.51	6.88	1.8	2737.24 Cr	-0.03%	94.18%	1540.09%	13363.69	2.87%	29.86%	92.02%	41.37%	-2.81%	49.53%	754.11%	Utilities	268134.4	55.41%	30.81%	54	5482580
Tata Motors Ltd	₹1,118.30	LARGE CAP	46.6%	70.17%	272.15%	641.39%	13.32	44.54	12.63	0.95	17528.59 Cr	145.31%	1082.46%	-344.36%	119213.35	8.57%	26.58%	75.32%	7.26%	125.94%	834.16%	-239.39%	Consumer Cyclical	400627.36	19.5%	14.69%	82.99	21231165
Adani Wilmar Ltd	₹325.15	MID CAP	-46.42%	-21.78%	20.54%	20.54%	283.64	103.97	5.04	1.06	154.56 Cr	-24.98%	-69.17%	-73.83%	13238.04	3.19%	-11.9%	38.21%	0.33%	-27.3%	-65.01%	-81.06%	Edible Oil	42025.11	3.42%	9.6%	1.31	2464820
Infosys Ltd	₹1,878.90	LARGE CAP	12.72%	35.29%	13.78%	131.87%	28.34	38.25	7.66	0.72	6374 Cr	-20.08%	8.88%	35.14%	39315	3.67%	4.7%	52.95%	17.08%	-22.91%	3.99%	-11.64%	Technology	757682.92	36.58%	45.07%	63.37	11368848
Tata Steel Ltd	₹162.55	LARGE CAP	7.97%	31.21%	21.26%	253.29%	-43.24	28.19	1.43	1.5	554.56 Cr	6.21%	-160.8%	-159.95%	58445.89	6.79%	-5.83%	46.63%	-2.14%	-0.55%	-164.56%	-140.88%	Industrials	196478.23	7.79%	13.67%	-3.94	45635665
Yes Bank Ltd	₹24.97	MID CAP	20.39%	44.82%	85.11%	-74.37%	50.24	16.6	1.09	1.28	516 Cr	10.42%	74.66%	-136.84%	8996.27	-1.14%	23.98%	42.4%	3.9%	11.69%	40.88%	-125.87%	Financial Services	77148.4	1.51%	NA	0.45	120821238
Zomato Ltd	₹224.62	LARGE CAP	141.34%	163.12%	55.93%	74.06%	548.28		2.05	0.83	175 Cr	26.81%	-20.57%	-59.3%	3562	8.33%	68.86%	171.79%	-13.72%	17.06%	-52.96%	-85.02%	Technology	193584.61	0.17%	0.25%	-1.16	35661393
ITC Ltd	₹502.20	LARGE CAP	-18.03%	3.75%	132.04%	81.19%	29.84	30.52	7.41	0.65	5187.22 Cr	-3.95%	6.54%	55.06%	17767.61	-0.59%	-0.08%	43.85%	29.28%	-3.38%	6.63%	7.79%	Consumer Defensive	612235.34	29.21%	37.4%	16.62	20735126
Wipro Ltd	₹524.80	LARGE CAP	2.57%	25.85%	-14.16%	92.28%	23.68	38.25	4.34	1.03	3036.6 Cr	6.24%	-2.24%	2.25%	21963.8	-1.1%	-0.8%	44.93%	12.38%	7.42%	-1.45%	-29.45%	Technology	265106.6	15.13%	19.03%	21.27	13073916
HDFC Bank Ltd	₹1,618.15	LARGE CAP	-28.73%	-4.38%	12.69%	41.98%	17.99	16.6	2.5	1.05	16474.85 Cr	-6.51%	39.27%	101.24%	116996.49	-5.94%	99.35%	161.73%	15.7%	-0.6%	-30.13%	-23.11%	Financial Services	1229929.05	16.88%	NA	86.15	21904374