Defence stocks have been on the radar amid a remarkable rally in their share prices. Experts opine that defence stocks had minimal representation in the Indian equity market about two years ago, however, they have been unstoppable lately and are leaving investors ecstatic. There is a push towards indigenisation and a possible surge in exports. India’s defence budget stands at $ 72.9 billion, making it the third largest globally and the runway for growth is huge.
Here are five defence stocks in which FIIs have increased their stake:
Hindustan Aeronautics
Hindustan Aeronautics manufactures aircraft and helicopters. It is also engaged in their repair and maintenance. FIIs currently hold an 11.90 percent stake in the company, compared to 9.07 percent in the previous quarter and 5.56 percent in the June quarter last year.
The company’s shares were trading at ₹ 3850.00 apiece at 01:23 PM on Monday and it is a large-cap stock with a market capitalization of ₹ 1,26,766 crores. Its share price gained 68 percent in the past year.
Zen Technologies
Zen Technologies designs, develops and manufactures combat training solutions for the training of defence and security forces. FIIs currently hold a 3.47 percent stake in the company, compared to 1.29 percent in the previous quarter and 0.32 percent in the June quarter last year.
The company’s shares were trading at ₹ 826.70 apiece and it is a small-cap stock with a market capitalization of ₹ 6,579 crores. Its shares gained 350 percent in the past year to deliver multibagger returns.
Mtar Tech
MTAR Technologies manufactures machine equipment, assemblies, sub-assemblies, and spare parts for energy, nuclear, space, aerospace, defence and other engineering industries. FIIs currently hold a 4.52 percent stake in the company, compared to 2.51 percent in the previous quarter and 2.30 percent in the June quarter last year.
The company’s shares were trading at ₹ 2217.00 apiece and it is a small-cap stock with a market capitalization of ₹ 6,802 crores. Its shares gained 39 percent in the past year.
Bharat Electronics
Bharat Electronics manufactures and supplies equipment and systems like navigation systems, communication products, radars, naval systems and so on to the defence as well as non-defence markets. FIIs currently hold a 17.35 percent stake in the company, compared to 16.42 percent in the previous quarter and 15.99 percent in the June quarter last year.
The company’s shares were trading at ₹ 130.45 apiece and it is a large-cap stock with a market capitalization of ₹ 96,526 crores. Its shares gained 33 percent in the past year.
Astra Microwave Products
Astra Microwave Products designs, develops and manufactures sub-systems for radio frequency and microwave systems used in defence, space, meteorology and telecommunication. FIIs currently hold a 3.03 percent stake in the company, compared to 2.32 percent in the previous quarter and 2.17 percent in the June quarter last year.
The company’s shares were trading at ₹ 359.95 apiece and it is a small-cap stock with a market capitalization of ₹ 3,432 crores. Its shares gained 31 percent in the past year.
Written by Simran Bafna
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