The defence industry includes engineering, production and maintenance companies for military facilities, equipment and material. India used to be one of the top importers of defence technology, however, over the past few years, the country has concentrated on lowering its reliance on foreign defence imports with programs like “Make in India” and “Atmanirbhar Bharat.”
India’s defence budget is worth $74 billion in 2023 and is expected to achieve a CAGR of more than 4 percent during the Financial year 2024-2028. India Aerospace & Defense Market size was over USD 10 billion in 2016 and is predicted to grow at an estimated CAGR of over 5% from 2017 to 2024
The profit margin is the amount of money left over after subtracting all operating and non operating expenditures. It is a profitability indicator that indicates how good the company’s pricing strategy is, how effectively the organisation can control expenses, and how efficiently it uses resources of the company to produce goods or services.
Bharat Electronics Limited
Bharat Electronics Limited is a Large-cap stock with a market capitalization of Rs. 99,230 Cr, the company’s shares closed at Rs. 135.75 down by 2.34 percent from its previous day close price.
The company’s operating margin increased from 20.63 percent in FY22 to 22.20 percent in FY23 and the net profit margins increased from 15.32 percent to 16.57 percent.
The stock gained 36 percent in the last six months and 30 percent in a year.
The company’s revenue increased by 15.4 percent from 15,368.18 Cr in FY22 to 17,734.44 Cr in FY23, accompanied by increasing profits of 2,354.46 Cr to 2,940.35 Cr.
Bharat Electronics Limited is a public sector undertaking that operates in the aerospace and defence sector, it primarily manufactures advanced electronic products for ground and aerospace applications.
Taneja Aerospace & Aviation
Taneja Aerospace & Aviation is a micro-cap stock with a market capitalization of 590 Cr, the company’s shares closed at Rs. 236.75 down by 1.58 percent from its previous day close price.
The company’s operating margins increased from 44.10 percent in FY22 to 53.67 percent in FY23 and the net profit margins increased from 17.52 percent to 34.48 percent.
The stock gained 83 percent in the last six months and 101 percent in a year.
The company’s revenue increased by 2 percent from 31.2 Cr in FY22 to 31.86 Cr in FY23, accompanied by increasing profits of 5.47 Cr to 10.99 Cr.
Taneja Aerospace & Aviation Ltd is engaged in the business of manufacture and sale of various parts and components to the aviation industry, providing services related to Airfield & MRO and allied services.
Avantel Limited
Avantel Limited is a small-cap stock with a market capitalization of 2,190 Cr, the company’s shares closed at Rs. 270.10 down by 0.64 percent from its previous day close price.
The company’s operating margins increased from 22.84 percent in FY22 to 26.88 percent in FY23 and the net profit margins increased from 17.12 percent to 17.37 percent.
The stock delivered multibagger returns of 200 percent in the last six months and 350 percent in a year
The company’s revenue increased by 47.17 percent from 104.95 Cr in FY22 to 154.45 Cr in FY23, accompanied by increasing profits of 17.98 Cr to 26.84 Cr.
Avantel Limited is engaged in the business of designing, developing and maintaining wireless and satellite communication products, defence electronics, radar systems and development of network management software applications for the defence and aerospace sector.
Written by: Bharath K.S
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