India’s defence sector has seen a strong wave of growth in recent years, backed by indigenous manufacturing, advanced technology adoption, and government-led initiatives to achieve self-reliance.
Several listed companies operating in the sector have not only built strong product portfolios but also delivered exceptional stock market performance over the past decade, reflecting investor confidence in the long-term potential of this space.
1. Avantel Ltd
Avantel is a technology-driven company engaged in manufacturing wireless front-end systems, satellite communication solutions, embedded systems, signal processing, network management, and software development. T
he company also provides customer support services and has a strong in-house R&D capability that supports innovation across its product portfolio. Its primary customer base since inception has been in the aerospace and defence sector, where it is recognized for its indigenous and innovative solutions.
The company operates with a unique business model built on delivering niche, state-of-the-art products that cater to the evolving needs of the Indian Defence Forces and allied establishments. It holds the latest certifications such as ISO 9001:2015 and AS9100D:2016, and its products meet stringent military standards including EMI/EMC, environmental, and software quality compliances.
Avantel is the first Indian company to introduce airborne SATCOM solutions, with its MSS and UHF Satcom systems already operational on platforms like Boeing P8I, IL-38, and DO-228 aircraft, and soon to be deployed on KA-28 and MH-60R helicopters.
Recognized by CEMILAC for design and development, it is also certified to install avionics equipment on military aircraft and helicopters. Its core areas include software-defined radios, radar systems, HF communications, satcom technologies, embedded systems, and network management software.
Avantel has a market capitalization of Rs. 4,515 crore and is currently trading at Rs. 170 per share. The stock has delivered a compound annual growth rate of 62 percent over the last ten years.
2. NIBE Ltd
NIBE Limited is a Pune-based defence manufacturer specializing in advanced weapon systems, precision engineering, and strategic components. The company plays an important role in India’s Atmanirbhar Bharat initiative by developing indigenous solutions across artillery, missiles, and electronic systems. It has established its reputation by combining innovation with reliability to serve the country’s growing defence needs.
NIBE’s production capabilities include robotic welding, laser cutting, bending, and CNC-based vertical machining, enabling it to manufacture highly complex systems with accuracy and durability. Its product range is extensive, including the Pinaka and MRSAM launcher systems, K9 Vajra tank hulls and turrets, modular and short-span bridging systems, and the Universal Rocket Launcher System, which is deployed globally.
The company also contributes to strategic defence programs with products such as BrahMos missile canisters, rudder blade assemblies, road mobile launchers, close-in weapon systems, TWMP mine ploughs, and universal vertical launch mechanisms.
NIBE has a market capitalization of Rs. 1,733 crore and is currently trading at Rs. 1,195 per share. The company’s stock has delivered an impressive ten-year CAGR of 65 percent.
3. Permanent Magnets Ltd
Permanent Magnets Limited, incorporated in 1960, has more than six decades of experience in the magnets, magnetic assemblies, and shunts industry. The company is a leading provider of electrical components and assemblies built around its core strengths in magnetic sensing, current sensing, alloys, assemblies, and ZAMAK die-casting.
Its solutions cater to a wide range of sectors including automobiles, renewable energy, aerospace and defence, food and beverage, and energy meters. With longstanding relationships with global tier-1 automobile and electricity meter companies, Permanent Magnets has established itself as a trusted supplier, supporting both conventional ICE vehicles and emerging EV technologies.
The company is expanding its presence in the defence and aerospace sectors through the development of critical components, as outlined in its FY25 report. As of June 30th 2025, Its existing product line includes current sensing products such as shunt current sensors, Hall effect sensors, and CT sensors, which are deployed in defence and aerospace applications.
By leveraging its design expertise and manufacturing capabilities, Permanent Magnets is positioning itself as a key player in supplying advanced components for defence-related technologies.
Permanent Magnets has a market capitalization of Rs. 884 crore and is currently trading at Rs. 1,028 per share. The stock has generated a ten-year CAGR of 57 percent.
Written By Manan Gangwar
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