Based on geopolitical tensions across national borders, the aerospace and defence industry is continuing to grow, and as a result, Indian defence sector stocks have experienced phenomenal growth for investors.
Over the previous decade, India has emerged as one of the most appealing in terms of military modernization, with an estimated capital expenditure of USD 250 billion over the next ten years.
Furthermore, the Make in India program has given domestic firms a considerable boost, pushing them to engage in capital expenditures and increase their production capacity.
Here are three stocks that have scaled defence electronic Manufacturing
Sika Interplant Systems Ltd
Sika Interplant Systems Ltd is an engineering-driven company that provides electronic systems and services to the aerospace & Defence sector as well as the automotive industries in India.
Sika Interplant Systems Ltd shares were trading at Rs 738 per share on June 30, up 8 percent. With a market valuation of Rs 307 crore, the firm falls into the small-cap category.
Sika Interplant is one of the private companies approved by the Centre for Military Airworthiness and Certification for design and approval. Recently, HAL and Sika Aerospace inked a Memorandum of Understanding for integration, and upgrades of platforms SAR & aerial firefighting.
Revenue declined by 39 percent year over year, from Rs 98 crore in FY 21–22 to Rs 60 crore in FY 22–23. Net profit decreased by 50 percent, from Rs. 16 crore to Rs. 8 crore.
Astra Microwave Products Ltd.
Astra Microwave Products is engaged in cutting-edge solutions in the development and manufacture of sub-systems for Radio Frequency and microwave systems used in defence, space, meteorology, and telecommunication.
Astra Microwave Products Ltd shares were trading at Rs 369 per share on June 30,up 0.61 percent. With a market valuation of Rs 3,502 crore, the firm falls into the small-cap category.
In Jan 2023,Ministry of defence approved Astra Microwave for the procurement proposal of Helina anti-tank guided missiles worth Rs 4,276 crore, and the deal was shared between Bharat Dynamics and Data Patterns.
The company developed the ‘Drishti’ Counter Drone Radar, which launched in February 2023 and was developed in collaboration with the DRDO.
Revenue climbed by 9 percent year over year, rising from Rs 750 crore in FY 21–22 to Rs 815 crore in FY 22–23. Net profit increased by 80 percent, from Rs. 40 crore to Rs. 72 crore.
Apollo Micro Systems Ltd
Apollo Micro Systems Limited is a pioneer in the design, and development of Mission critical applications and a prominent player in the state-of-the-art technologies for the Defence sector, particularly in the areas of electronic manufacturing, and weapon integration.
Apollo Micro Systems Ltd shares were trading at Rs 55.15 per share on June 30, down 5 percent. With a market valuation of Rs 1,272 crore, the firm falls into the small-cap category. And In the last month stock has gained 57 percent.
In May 2023, the Company board approved a proposal to raise funds up to Rs 200 crore for the expansion of the facility and the acquisition of the technology company.
Revenue climbed by 22 percent year over year, rising from Rs 243 crore in FY 21–22 to Rs 297 crore in FY 22–23. Net profit increased by 29 percent, from Rs. 14 crore to Rs. 18 crore.
Revenue is expected to grow by 45 to 50 percent in the current financial year 2023-24 led by growth opportunities in defence.
Written by Omkar C
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