The defence sector in India is pivotal, with over 1.44 million active personnel and a defence budget of Rs 6.22 lakh crore for FY 2024-25, marking a 4.79% increase from the previous year. The government aims for Rs 1.75 lakh crore in manufacturing by 2025, including Rs 35,000 crore in exports.
Here are the defence stocks with a robust order book of up to Rs 74,595 crore.
Bharat Electronics Ltd
Bharat Electronics Limited develops and provides electronic equipment and systems to both the defense and non-defense industries. Its defense products include navigation systems, communication systems, land-based radars, naval systems, and electronic warfare systems, among others.
With a market capitalization of Rs 2.05 lakh crore, on Thursday, the shares were closed at Rs 281 per share, decreased around 0.21 percent as compared to the previous closing price.
As of October 2024, the total order book stands at approximately ₹74,595 crore. This figure reflects the cumulative orders secured during the current fiscal year, which includes a notable order worth ₹695 crore announced in August 2024.
Moreover, the company maintains a 15% revenue growth guidance for the year and expects an order inflow of ₹25,000 crores. Key orders include the BMP-2 Upgrade, TR Modules for Thales, and MPR Radar for ITR Chandipur.
Cochin Shipyard Ltd
Cochin Shipyard Limited is engaged in the shipbuilding and ship repair business. The Company is engaged in the construction of vessels and repairs and refits of all types of vessels including upgradation of ships periodical layup repairs and life extension of ships.
With a market capitalization of Rs 34,527 crore, on Thursday, the shares were closed at Rs 1,312 per share, decreased around 1 percent as compared to the previous closing price.
The company expects a 20-25% top-line growth for FY ’24-’25, despite higher depreciation from the ISRF and new dry dock projects. It aims for sustainable EBITDA levels and maintains a strong order book with around Rs 22,500 crores of unexecuted orders, ensuring future revenue stability.
Recently, the company signed a contract with a European client to design and build Hybrid Service Operation Vessels (SOVs), with delivery in 2026, and secured additional SOV orders from the same client. Its subsidiaries, UCSL and HCSL, also won orders for Bollard Pull Tugs and ASD Tugs from various clients.
Mazagon Dock Shipbuilders Ltd
Mazagon Dock Shipbuilders Limited is engaged in building and repairing ships, submarines, various types of vessels, and related engineering products. The Company is into the construction of warships and submarines. It is also engaged in the production of defense equipment.
With a market capitalization of Rs 79,186 crore, on Thursday, the shares were closed at Rs 3,926 per share, increased around 1 percent as compared to the previous closing price.
The company’s current order book is around ₹39,872 crores in Q2FY25, with revenue targets for FY25 projected to surpass last year’s performance. This robust pipeline highlights strong growth potential and reinforces confidence in meeting or exceeding financial goals for the upcoming fiscal year.
The company plans to invest ₹4,000 to ₹5,000 crores in capital expenditure over the next 4-5 years for infrastructure development, including land acquisition and facility upgrades. So far, ₹800 crores have been spent on long-term land leases, marking significant progress in these Initiatives.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
