The defence industry in India is a significant contributor to the nation’s economy and stock market. The Indian government has been increasing defence spending, potentially leading to increased demand for defence products and services, benefiting defence companies.
The geopolitical tensions between Iran and Israel have kept investors on edge. The attack has led to concerns over delayed US rate cuts, escalating Middle East tensions driving oil prices up, and subdued Q4 earnings projections.
Listed below are such defence stocks that are trading at a discount of upto 34%:
Paras Defence and Space Technologies Ltd
With a market capitalization of Rs. 2,708 crores, the shares of the company engaged in designing and developing defence equipment started Tuesday’s trading session on a lower note at Rs. 675 compared to its previous close of Rs. 682.80. During the trading session, the shares hit a high of Rs. 700.95, gaining around 2 percent and are currently trading at Rs. 697 apiece.
The company hit its 52-week or all-time high in September 2023 at Rs. 848 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 18 percent.
Coming onto the company’s financial statements, the revenue increased by 5 percent from Rs. 61.31 crores during the September quarter to Rs. 64.18 crores in the December quarter. On a contrasting note, the net profits decreased by 33 percent from Rs. 8.76 crores to Rs. 5.86 crores during the same period.
Taneja Aerospace & Aviation Ltd
With a market capitalization of Rs. 1,009 crores, the shares of the company engaged in manufacturing aircraft components and products started Tuesday’s trading session on a lower note at Rs. 384 compared to its previous close of Rs. 386.55. During the trading session, the shares hit a high of Rs. 410, gaining around 4 percent and are currently trading at Rs. 401 apiece.
The company hit its 52-week or all-time high in February 2024 at Rs. 502.30 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 20 percent.
Coming onto the company’s financial statements, the revenue increased by 4 percent from Rs. 7.15 crores during the September quarter to Rs. 7.45 crores in the December quarter. On a contrasting note, the net profits decreased by 6 percent from Rs. 2.67 crores to Rs. 2.50 crores during the same period.
CFF Fluid Control Ltd
With a market capitalization of Rs. 832 crores, the shares of the company engaged in manufacturing and servicing shipboard machinery started Tuesday’s trading session on a flatter note at Rs. 426.50. During the trading session, the shares hit a high of Rs. 431, gaining around 1 percent and are currently trading at Rs. 427 apiece.
The company hit its 52-week or all-time high in January 2024 at Rs. 548.95 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 22 percent.
Coming onto the company’s financial statements, the revenue increased by 84 percent from Rs. 32 crores during H2FY23 to Rs. 59 crores in H1FY24. In addition, the net profits magnified by 150 percent from Rs. 4 crores to Rs. 10 crores during the same timeframe.
Apollo Micro Systems Ltd
With a market capitalization of Rs. 3,039 crores, the shares of the company engaged in providing technology-based solutions for the defence sector started Tuesday’s trading session on a lower note at Rs. 105.80 compared to its previous close of Rs. 107. During the trading session, the shares hit a high of Rs. 109.90, gaining around 1 percent and are currently trading at Rs. 107 apiece.
The company hit its 52-week or all-time high in January 2024 at Rs. 161.75 and, comparing the same with the current stock price prevailing in the market, there is a discount of approximately 34 percent.
Coming onto the company’s financial statements, the revenue increased by 5 percent from Rs. 87.16 crores during the September quarter to Rs. 91.34 crores in the December quarter. In addition, the net profits zoomed by 52 percent from Rs. 6.56 crores to Rs. 9.96 crores during the same period.
Written By Vaibhav Patil
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