Top Defence Stocks in India: Over the last year every time we tune into the news we find ourselves in tensions with our neighbours Pakistan and currently China too.

During the same period, the Indian government has committed itself to boosting the Indian Defence to all possible extents.

This could be through investments in foreign jets or even our PM’s scheme of an Atma Nirbhar Bharat. This makes the defence sector impossible to ignore even from an investment POV.

In this article, we take a look at the Top Defence stocks in India. Keep Reading to find out!

Indian Defence Sector – Overview

The Indian defence manufacturing industry is one of the most important in the economy. Its importance increases as concerns for national security escalate.

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This is particularly because of rising territorial disputes with Pakistan and China. The Indian defence manufacturing industry grew at a CAGR of 3.9% between 2016 and 2020.

In a further boost to the sector, the government has set the defence production target at US$ 25.00 billion by 2025. As of 2019, India ranked 19th in the list of top defence exporters in the world.

Furthermore, the Defence Ministry has set a target of 70% self-reliance in weaponry by 2027 further boosting demand for local players.

Top Indian Defence Sector Stocks 

Now let us take a look at the Top Defence stocks in India for 2022.

Top Defence Stocks in India #1 – BEL

Bharat Electronics | Top Defence Stocks in India
ParticularsValues
Face Value (₹)1
EPS (₹)9
Debt to Equity0
ROE (%)19.59
Current Ratio1.41
Market Cap (Cr)₹52,777Cr
Promoter’s Holdings (%)51.14%
Dividend Yield (%):1.85
Stock P/E (TTM):23
Net Profit Margin:14.56%

Bharat Electronics Limited (BEL) is a public aerospace and defence electronics company. The company primarily manufactures advanced electronic products for ground and aerospace applications.

The company has about nine factories and several regional offices in India. They primarily manufacture advanced electronic products for ground and aerospace applications.

Off late, the company is also venturing into other civilian segments.

Top Defence Stocks in India #2 – Bharat Forge

Kalyani Bharat Forge | Top Defence Stocks in India
Particulars Values
Face Value (₹)2
EPS (₹)9
Debt to Equity0.92
ROE (%)-1.82
Current Ratio1.38
Market Cap (Cr)₹36,099Cr
Promoter’s Holdings (%)44.76%
Dividend Yield (%):0.26
Stock P/E (TTM):85.11
Net Profit Margin:4.56%

Founded in 1961, Bharat Forge is one of the leading defence companies in the country.

The company is engaged in manufacturing designing and engineering systems and sub-systems space for Artillery Guns, Armoured Fighting Vehicles, Protected Vehicles, Ammunition, Defence Electronics and Small Arms.

The company is also involved in power, oil & gas, construction & mining, locomotive, marine and aerospace industries.  

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Top Defence Stocks in India #3 – HAL

HAL | Top Defence Stocks in India
Particulars Values
Face Value (₹)10
EPS (₹)105
Debt to Equity0
ROE (%)22.57
Current Ratio1.57
Market Cap (Cr)₹46,647Cr
Promoter’s Holdings (%)75.15%
Dividend Yield (%):2.15
Stock P/E (TTM):13.26
Net Profit Margin:13.08%

Hindustan Aeronautics is the backbone of the Indian Airforce  HAL manufactures the Light Combat Aircraft (LCA) Tejas with advanced technologies, and the 25-tonne Sukhoi-30 MKI fourth-generation fighter aircraft of Russian origin right from raw materials.

The company was also ranked 42nd amongst defence companies around the world according to a report titled ‘Top 100 arms-producing and military services companies, 2020’.

Top Defence Stocks in India #4 – Bharat Dynamics

Bharat Dynamics Limited | Top Defence Stocks in India
Particulars Values
Face Value (₹)10
EPS (₹)18
Debt to Equity0
ROE (%)9.82
Current Ratio1.94
Market Cap (Cr)₹8,104Cr
Promoter’s Holdings (%)74.93%
Dividend Yield (%):1.66
Stock P/E (TTM):24.42
Net Profit Margin:14.82%

Bharat Dynamics Limited (BDL) is one of India’s top defence stocks. It was founded in 1970. BDL was established to be a manufacturing base for guided weapon systems and began with a pool of engineers drawn from Indian Ordnance Factories, DRDO and aerospace industries, It began by producing a first-generation anti-tank guided missile – the French SS11B1.

Today the company specializes in the manufacture of ammunition, rifles and panels. It also manufactures other missiles and systems for the Indian Armed Forces.

Top Defence Stocks in India #5 – Paras Defence and Space Technologies Ltd. 

Paras Defence
Particulars Values
Face Value (₹)10
EPS (₹)4
Debt to Equity0.63
ROE (%)15.56%
Current Ratio1.9
Market Cap (Cr)₹2,849Cr
Promoter’s Holdings (%)58.94%
Dividend Yield (%):0
Stock P/E (TTM):181.82
Net Profit Margin:12.22%

Paras Defence and Space Technologies Ltd. are engaged in designing, developing, manufacturing, and testing a range of Defence and space engineering products and solutions.

Its products fall into 5 key categories military & space optics, Defence electronics, electro-magnetic pulse protection solutions, and heavy engineering.

It is also the only Indian company that has the design capability and which provides essential imaging components for space-optics and optomechanical assemblies.  

In Closing 

The Indian defence sector has seen a CAGR of 3.9% between 2016 and 2020. In addition to this, the targets set by the government like achieving an Atma Nirbhar Bharat also extend to the defence sector.

Let us know what you think about the Top Defence stocks defence sector in the comments below. Happy Investing!

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