The defence manufacturing industry in India has seen a compound annual growth rate (CAGR) of 3.9 percent from 2016 to 2020. The Indian government has set a target of US$ 25.00 billion for defence manufacturing by 2025, which includes US$ 5 billion from exports. India was expected to export defence goods of US$ 1.29 billion in 2019–20.
Over the past two years, the country’s defence exports have grown significantly. In the next five years, India hopes to sell military gear valued at US$ 5 billion (about Rs. 35,000 crore). India’s 2023 defence budget is projected to be around $74 billion, with a compound annual growth rate (CAGR) of more than 4% through 2024–2028.
Here are three Defence Stocks in which FIIs increased their stake up to 5.1 % in Q2FY24 from Q1FY24.
Data Patterns (India) Ltd
Data Patterns is engaged in the in-house development and manufacturing of the complete range of defence and aerospace systems, including space, air, land, and sea. It provides solutions for strategic aerospace and defence electronics systems.
On Wednesday, shares of Data Patterns (India) Ltd shares were trading at Rs 1,982.95, up 1.41 percent from the previous close price, with a market value of Rs 11,101 crores.
Foreign institutional investors increased their stake in the company by 1.85 percent,i.e., from 5.32 percent in Q1FY24 to 7.17 percent in Q2FY24. As of the September quarter of FY 23-24, the promoters hold a 42.41 percent stake, while retail investors hold a 40.88 percent stake in the company. The company’s stock has delivered returns of 15 in six months and 43 percent in a year.
Data Patterns (India) Ltd’s operational revenue has jumped by 23 percent yearly, from Rs 88 crore in Q2FY23 to Rs 108 crore in Q2FY24. During the same period, net profit rose by 57 percent, from Rs 21 crore to Rs 33 crore.
MTAR Technologies Ltd
MTAR Technologies manufactures machine tools, assemblies, subassemblies, and spare parts for the energy, nuclear, space, aerospace, military, and other technical industries.
On Wednesday, shares of MTAR Technologies Ltd closed at Rs 2,562.10, up 0.65 percent from the previous close price, with a market value of Rs 7,880 crores.
Foreign institutional investors increased their stake in the company by 4.29 percent,i.e., from 4.52 percent in Q1FY24 to 8.81 percent in Q2FY24. As of the September quarter of FY 23-24, the promoters hold a 39.14 percent stake, while retail investors hold a 27.97 percent stake in the company. MTAR Technologies Ltd shares have delivered a return of 35 in six months and 58 percent in a year.
MTAR Technologies Ltd’s operational revenue has jumped by 67 percent yearly, from Rs 91 crore in Q1FY23 to Rs 152 crore in Q1FY24. During the same period, net profit rose by 19 percent, from Rs 16 crore to Rs 19 crore.
Apollo Micro Systems Ltd
Apollo Micro Systems Ltd is a pioneer in the design, development, assembly, and testing of electronic and electro-mechanical solutions.
On Wednesday, shares of Apollo Micro Systems Ltd were trading at Rs 122.45, up 7.75 percent from the previous close price, with a market value of Rs 3,220 crores.
Foreign institutional investors increased their stake in the company by 5.1 percent,i.e., from 0.17 percent in Q1FY24 to 5.27 percent in Q2FY24. As of the September quarter of FY 23-24, the promoters hold a 52.67 percent stake, while retail investors hold a 38.76 percent stake in the company. The company’s shares have delivered a multi-bagger return of 219 in six months and 391 percent in a year.
Apollo Micro Systems Ltd’s operational revenue has increased by 2 percent yearly, from Rs 56 crore in Q1FY23 to Rs 57 crore in Q1FY24. During the same period, net profit rose from Rs 1.64 crore to Rs 1.65 crore.
Written by Omkar Chitnis
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