The government’s focus on import substitution, indigenization, and export growth has significantly propelled the defence industry, leading to a 15 percent compound annual growth rate (CAGR) in the turnover of India’s defence industry.
Here are some of the Defence sector stocks in which the Foreign Institutional Investors (FII)/Foreign Portfolio Investors (FPI) have increased their holding by upto 6.08 percent stake in Q4FY24.
Data Patterns (India)
Data Patterns (India) Limited is an integrated defence and aerospace electronics provider catering to the indigenously developed defence products industry. It offers electronic warfare products, radar, radar subsystems, test systems, naval systems, processors, and many more.
With a market capitalization of Rs. 15,641 Crores, the shares of Data Patterns (India) Limited closed at Rs. 2,793.90, up 1.94 percent from its previous day’s close price of Rs. 2,740.60.
In Q4FY24, the FII/FPI increased their holding in Data Patterns (India) Limited from 6.74 percent to 14.56 percent by purchasing an additional 7.82 percent stake.
As of Q3FY24, Data Patterns (India) has a strong order book of Rs. 1,009 Crores with 43 percent of development orders, 55 percent of production orders, and 1 percent of service orders.
Its revenue from operations grew by 25 percent from Rs. 112 Crores in Q3FY23 to Rs. 140 Crores in Q3FY24, accompanied by profits of Rs.33 Crores to Rs. 51 Crores.
Bharat Heavy Electricals
Bharat Heavy Electricals Limited (BHEL) is Maharatna CPSE and one of the largest engineering and manufacturing companies in India engaged in the design, engineering, construction, testing, commissioning, and servicing of a wide range of products and services for the core sectors of the economy like power, transmission, renewable energy, industry, and many more.
With a market capitalization of Rs. 88,532 Crores, the shares of Bharat Heavy Electricals Limited (BHEL) closed at Rs. 254.25, up 0.43 percent from its previous day’s close price of Rs. 253.15.
In Q4FY24, the FII/FPI increased their holding in Bharat Heavy Electricals Limited from 7.04 percent to 8.76 percent by purchasing an additional 1.72 percent stake.
As of Q3FY24 Bharat Heavy Electricals has a strong outstanding Order Book of Rs. 1,08,618 Crores, out of which 70 percent is from the power sector, 26 percent from the industrial sector, and 4 percent from exports.
Its revenue from operations grew by 4.57 percent from Rs. 5,263 Crores in Q3FY23 to Rs. 5,504 Crores in Q3FY24, accompanied by profits of Rs. 42 Crores to a loss of Rs. 149 Crores.
Bharat Earth Movers
Bharat Earth Movers Limited (BEML) is engaged in the business of manufacturing and supplying a wide range of heavy earthmoving equipment catering to the mining and construction industry, vehicles for defense forces, and aluminum wagons, coaches for the metro, and many more for the Railways.
With a market capitalization of Rs. 14,325 Crores, the shares of Bharat Earth Movers Limited (BEML) closed at Rs. 3,440, down 0.29 percent from its previous day’s close price of Rs. 3,450.10.
In Q4FY24, the FII/FPI increased their holding in Bharat Earth Movers Limited from 9.12 percent to 9.91 percent by purchasing an additional 0.79 percent stake.
As per the latest data available for Q3FY24, Bharat Earth Movers Limited has a strong order book of Rs. 12,230 Crores.
Its revenue from operations grew by 0.96 percent from Rs. 1,037 Crores in Q3FY23 to Rs. 1,047 Crores in Q3FY24, accompanied by profits of Rs. 66 Crores to Rs. 48 Crores.
Garden Reach Shipbuilders & Engineers
Garden Reach Shipbuilders Limited is a shipbuilding company catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. It is engaged in the construction, and engineering of commercial vessels and engine production activities. It is mainly engaged in the construction of warships/vessels for the defence sector.
With a market capitalization of Rs. 9,948 Crores, the shares of Garden Reach Shipbuilders & Engineers Limited closed at Rs. 868.50, up 0.44 percent from its previous day’s close price of Rs. 864.70.
In Q4FY24, the FII/FPI increased their holding in Garden Reach Shipbuilders & Engineers Limited from 2.86 percent to 3.26 percent by purchasing an additional 0.39 percent stake.
Its revenue from operations grew by 32.04 percent from Rs. 699 Crores in Q3FY23 to Rs. 923 Crores in Q3FY24, accompanied by profits of Rs. 64 Crores to Rs. 88 Crores.
Written by: Bharath K.S
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