The government’s focus on import substitution, make-in-India, 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.
Listed below are some of the top Defence stocks with a PEG ratio of less than 1 that you can add to your watchlist
Zen Technologies
Zen Technologies Limited is engaged in the business of designing, developing, and manufacturing state-of-the-art Combat Training Solutions for the training of Defence & Security Forces worldwide.
With a market capitalization of Rs. 8,740 Crores, the shares of Zen Technologies Limited closed at Rs. 1,040, up 0.34 percent from its previous day’s close price of Rs. 1,036.50.
Zen Technologies Limited has delivered multibagger returns of 232 percent in a year and it has reported a PEG ratio of 0.51.
As of December 31, 2023, Zen Technologies Limited has a strong order book of Rs.1,434.38 Crores, consisting of annual maintenance contracts for Rs. 270 Crores and supply of equipment for Rs. 1,164.38 Crores.
Its revenue from operations grew by 196.97 percent from Rs. 33 Crores in Q3FY23 to Rs. 98 Crores in Q3FY24, accompanied by profits of Rs. 8 Crores to Rs. 32 Crores.
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. 15,080 Crores, the shares of Data Patterns (India) Limited closed at Rs. 2,693.70, up 0.14 percent from its previous day’s close price of Rs. 2,690.05.
Data Patterns (India) Limited has returns of 88 percent in a year and it has reported a PEG ratio of 0.60.
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 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.
Written by: Bharath K.S
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