The Defence Acquisition Council (DAC) approved five acquisition proposals totaling over Rs 21,772 crore as part of efforts to strengthen defense capabilities.
As part of the approval the DAC has given the Acceptance of Necessity (AoN) for various proposals which includes Water Jet Fast Attack Crafts (WJFACs), Electronic Warfare Suites, Radar Warning Systems and Advanced Light Helicopters.
Here are some defense stocks with better fundamentals that you may consider adding to your watchlist
Mazagon Dock shipbuilders
Mazagon Dock Shipbuilders Ltd (MDL) is engaged in the construction and repair of ships and submarines and the company specializes in building advanced warships,destroyers, frigates, and submarines for the Indian Navy and Coast Guard.
It additionally undertakes the repair and maintenance of various naval and commercial vessels with a focus on innovation and technology and to significantly strengthen India’s defense capabilities and maritime security, and It has an order book of Rs. 39,872 Crores.
With the market capitalization of 94,902 Cr on Wednesday, the shares of Mazagon Dock Shipbuilders Ltd jumped up to 4.73 percent making an Intraday high of Rs.4,928 compared to its previous closing price of Rs.4,705
Its revenue from operations rose by 44.82 percent from Rs. 2079.18 Crores in Q2FY24 to Rs. 3011.11 Crores in Q2FY25, accompanied by profits of Rs. 332.79 Crores to Rs. 585.08 Crores.
Garden Reach Shipbuilders & Engineers Ltd (GRSE)
Garden Reach Shipbuilders & Engineers Ltd (GRSE) specializes in the design and construction of various types of ships, including warships, patrol vessels, and commercial ships .
It is a key player in the Indian defense sector it delivers ships to the Indian Navy and Coast Guard and also GRSE offers ship repair and maintenance services with a strong focus on technological advancements and GRSE continues to contribute significantly to India’s defense and maritime industries and It has an order book of Rs. 24,221.37 Crores.
With the market capitalization of 19,530 Cr on Wednesday, the shares of Garden Reach Shipbuilders & Engineers Ltd jumped up to 6.5 percent making an Intraday high of Rs.1,815.35 compared to its previous closing price of Rs.1,704.45
Its revenue from operations rose by 26.6 percent from Rs. 969.46 Crores in Q2FY24 to Rs. 1227.83 Crores in Q2FY25, accompanied by profits of Rs. 80.74 Crores to Rs. 97.77 Crores.
Hindustan Aeronautics Ltd
Hindustan Aeronautics Ltd (HAL) is a state-owned aerospace and defense company that is a key player in the Indian defense sector, specializing in the design, development, and manufacture of aircraft, helicopters and their associated systems. The company produces a wide range of defense products, including fighter jets, transport aircraft, and advanced helicopters for the Indian Air Force, Army, and Navy.
HAL is also involved in the repair, overhaul and maintenance of military and civilian aircraft and it also focuses on innovation and technological excellence and HAL plays a critical role in enhancing India’s defense capabilities and self-reliance in aerospace technology. It has an order book of Rs. 94,000 Crores.
With the market capitalization of 3,02,072 Cr on Wednesday, the shares of Hindustan Aeronautics Ltd (HAL) declined up to 2.3 percent making an Intraday high of Rs.4,627 compared to its previous closing price of Rs.4,518.85
Its revenue from operations rose by 22.13 percent from Rs. 6,105.07 Crores in Q2FY24 to Rs.6,518.7 Crores in Q2FY25, accompanied by profits of Rs. 1236.7 Crores to Rs. 1,510.48 Crores
Bharat Electronics Ltd
Bharat Electronics Limited (BEL) specializes in the design, development, and manufacture of advanced electronics systems for defence, telecommunications and other sectors and the company is known for its production of radar systems, communication equipment, electronic warfare systems, and various other defense-related electronics.
BEL plays a crucial role in supporting the Indian armed forces by providing them with cutting-edge technology and reliable systems and also focus on innovation and technological excellence. BEL continues to be a key player in India’s defense and electronics industries. It has an order book of Rs. 74,595 Crores.
With the market capitalization of 2,28,064Cr on Wednesday, the shares of Bharat Electronics Ltd jumped up to 2.8 percent making an Intraday high of Rs.320.85 compared to its previous closing price of Rs. 312.10.
Its revenue from operations rose by 14.87 percent from Rs. 4,146.12 Crores in Q2FY24 to Rs.4762.66 Crores in Q2FY25, accompanied by profits of Rs. 789.35 Crores to Rs. 1,092.45 Crores.
Bharat Dynamics Limited
Bharat Dynamics Limited (BDL) specialises in the design, development, and manufacturing of advanced missile systems and related technologies and also BDL plays a key role in India’s defense sector by producing a wide range of products, including surface-to-air missiles, anti-tank guided missiles, and other missile-based defense systems for the Indian Armed Forces.
The company also provides maintenance and modernization services for defense equipment. and known for its technological expertise and commitment to quality, BDL continues to contribute significantly to strengthening India’s defense capabilities. It has an order book of Rs. 18,182 Crores.
With the market capitalization of 42,246Cr on Wednesday, the shares of Bharat Dynamics Limited jumped up to 5.60 percent making an Intraday high of Rs.1,225 compared to its previous closing price of Rs. 1,512.20.
Its revenue from operations declined by 9 percent from Rs. 694.11 Crores in Q2FY24 to Rs.630.8 Crores in Q2FY25, accompanied by profits of Rs. 147.09 Crores to Rs. 122.53 Crores.
Written by Sridhar J
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