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.
Listed below are such defence stocks whose market capitalization is less than 1,000 crores and have delivered multibagger returns:
Krishna Defence & Allied Industries Ltd
With a market capitalization of Rs. 521 crores, the shares of Defence Application Products manufacturing company started Monday’s trading session on a higher note at Rs. 423 compared to its previous close of Rs. 419. During the trading session, the shares hit a high of Rs. 427.50, gaining around 2 percent and are currently trading at Rs. 427 apiece.
Coming onto the company’s financial statements, the revenue decreased by 20 percent from Rs. 44.10 crores during H2FY23 to Rs. 35.23 crores in H1FY24. In addition, the net profits declined by 28 percent from Rs. 3.66 crores to Rs. 2.63 crores during the same period.
The stock has delivered a multibagger return of 207 percent to its shareholders in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago then the worth of those shares would be Rs. 3.07 lakhs now.
During the current financial year, the company has an order book of Rs. 184.62 crores. Krishna Defence & Allied Industries specializes in designing, developing, and manufacturing various equipment for defence, security, dairy, and kitchen verticals. The company’s defence and security verticals have aided the Indian Government in procuring equipment within the nation, reducing dependence on imports.
Sika Interplant Systems Ltd
With a market capitalization of Rs. 757 crores, the shares of this engineering company focused on the Aerospace and Defence sector started Monday’s trading session on a lower note at Rs. 1,797 compared to its previous close of Rs. 1,799.95. During the trading session, the shares hit a low of Rs. 1,765, making a loss of around 1 percent and are currently trading at Rs. 1,783 apiece.
Coming onto the company’s financial statements, the revenue increased by 42 percent from Rs. 18.26 crores during the September quarter to Rs. 26 crores in the December quarter. On a contrasting note, the net profits decreased by around 6 percent from Rs. 5.01 crores to Rs. 4.73 crores during the same period.
The stock has delivered a multibagger return of 221 percent to its shareholders in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago then the worth of those shares would be Rs. 3.21 lakhs now.
Sika Interplant Systems Ltd serves the Aerospace and Defence (A&D) sector, with a focus on engineering, manufacturing solutions, projects and systems integration, MRO (maintenance, repair, and overhaul), and distribution. The company boasts a robust customer base, including prominent names like HAL, Tata Power, and Larsen & Toubro Ltd, among others.
CFF Fluid Control Ltd
With a market capitalization of Rs. 833 crores, the shares of the shipboard machinery manufacturing company started Monday’s trading session on a higher note at Rs. 438 compared to its previous close of Rs. 428. During the trading session, the shares hit a high of Rs. 439, gaining around 3 percent and are currently trading at Rs. 437 apiece.
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.
The stock has delivered a multibagger return of 137 percent to its shareholders in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago then the worth of those shares would be Rs. 2.37 lakhs now.
As per the latest data, the company’s order book stood at Rs. 113 crores. Among these orders, 50.5 percent were for Mechanical Equipment, while the remaining 49.5 percent were for Electrical Equipment. CFF Fluid Control Ltd boasts a robust customer base, featuring prominent entities such as the Indian Navy, Bharat Electronics Ltd, Mazagaon Dockyard and Shipbuilders Limited (MDL), among others.
Written By Vaibhav Patil
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