India’s defense sector is growing rapidly, fueled by increasing government support and a focus on self-reliance. This growth has helped certain defense companies deliver impressive returns, with some stocks soaring up to 5400% over the past five years
One important measure of a company’s efficiency is Return on Capital Employed (ROCE), which indicates how well it uses its capital to generate profits. This article highlights three defense stocks that combine high ROCE with exceptional long-term returns, making them strong candidates to watch for investors.
1. ZEN TECHNOLOGIES
Zen Technologies Limited, founded in 1993 and headquartered in Hyderabad, India, is a leading defense technology company specializing in combat training simulators and counter-drone systems. The company designs, develops, and manufactures a wide range of advanced training systems for military, paramilitary, and law enforcement forces both in India and internationally.
Zen Technologies has given a Multibagger Return of 5,364 percent in the last 5 years, and the last 1-year return is 90 percent Stock has a strong ROCE of 46 percent and ROE of 33 percent.
2. MAZAGON DOCK SHIPBUILDERS
Mazagon Dock Shipbuilders Limited (MDL), established in 1934 and headquartered in Mumbai, is one of India’s leading defense public sector undertakings specializing in the construction of warships and submarines. Nationalized in 1960, MDL operates under the Ministry of Defence and holds Navratna status, signifying its strategic and financial significance to India’s defense infrastructure.
Mazagon Dock Shipbuilders has given a Multibagger Return of 4,093 percent in the last 5 years, and the last 1-year return is 188 percent Stock has a strong ROCE of 44.20 percent and ROE of 35.20 percent.
3. HINDUSTAN AERONAUTICS
Hindustan Aeronautics Limited (HAL), headquartered in Bengaluru, is India’s premier aerospace and defense company operating under the Ministry of Defence. Established in 1964 through the merger of Hindustan Aircraft Limited and Aeronautics India Limited, HAL has since played a pivotal role in advancing India’s self-reliance in defense aviation. It was granted Maharatna status in October 2024, reflecting its strategic importance and strong financial performance.
Hindustan Aeronautics has given a Multibagger Return of 1,855 percent in the last 5 years, and the last 1-year return is 11 percent Stock has a strong ROCE of 33.90 percent and ROE of 26.10 percent.
Written By Abhishek Das
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