India’s defense sector is witnessing rapid modernization, fueled by the government’s focus on self-reliance under the ‘Atmanirbhar Bharat’ initiative. While large defense corporations often dominate the spotlight, several small-cap companies are steadily making meaningful contributions. These firms support the Indian Armed Forces through the supply of specialized components, electronic systems, surveillance equipment, and engineering solutions essential to military operations.
Here are two small-cap stocks contributing to India’s defense sector
Goodluck India Ltd
With a market capitalization of Rs.2,365 crore, the shares of Goodluck India Ltd closed at Rs.722.15 per equity share on Wednesday, falling nearly 2.73 percent from its previous day’s close price of Rs.742.45 apiece.
Goodluck India Limited, through its subsidiary, has announced plans to establish a new manufacturing facility aimed at serving the growing demands of the defence and aerospace sectors. The proposed plant will have a production capacity of approximately 1,50,000 shells. With an estimated investment of around Rs.216.50 crore, the project will be financed through a mix of debt and equity. The company anticipates commencing trial production in the first quarter of FY26.
Goodluck India Limited currently manufactures a diverse range of high-precision components that cater to the defence and aerospace sectors. Its product lineup includes defence-grade equipment, aerospace parts, and a variety of forged components such as flanges, gear rings, and shafts. The company also offers gear shanks, blind and tube sheets, socket welding flanges, and slip-on flanges crucial components used in complex engineering and defence applications.
Goodluck India Limited is a key supplier to several major Indian defence programs. Its contributions include components for Pralay and BrahMos missiles, Pinaka rockets, Indigenous rocket launchers, the HAL-HTFE engine program, K9 Vajra howitzers, and Talwar-class frigates, demonstrating its strong presence in the defence manufacturing space.
NIBE Ltd
With a market capitalization of Rs.1,886 crore, the shares of NIBE Ltd closed at Rs.1,317.35 per equity share on Wednesday, falling nearly 4.86 percent from its previous day’s close price of Rs.1,384.65 apiece.
Nibe Limited is engaged in the integrated manufacturing and fabrication of critical components used in defence systems and sub-systems. The company primarily focuses on precision weapons, surveillance, and communication equipment, protective vehicles, and various defensive or deterrent systems and components.
Recently, the company began commercial production using India’s first 16-meter VMC machine from Zayer, Spain. This advanced machine, equipped with Siemens 840D control and high-precision capabilities, enables the machining of large, complex components such as missile launchers, sub-frames, and launching platforms for defence, space, and aerospace sectors.
Written by – Siddesh S Raskar
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