Do you wish to invest in defence stocks in India? The Indian defence sector is expected to grow significantly in the coming years due to the Indian government’s heightened focus on national security. In reality, India’s defence budget 2023 is Rs 5,94,875 crore, a substantial rise over the previous year.
Investing in defence sector shares may help investors to capitalise on this potential growth. We’ll look at some of the top defence companies in Indian stock market, including Hindustan Aeronautics Ltd, Mazagon Dock Shipbuilders Ltd, and Bharat Dynamics Ltd.
These companies are among the best defence stocks in India to add to your portfolio. Defence related stocks are expected to see increased demand as a result of the government of India’s focus on self-sufficiency and the Make in India initiative. Here are the best six multibagger defence stocks list to buy in India.
Top 6 Multibagger Defence Stocks to Invest in India
#1. Hindustan Aeronautics Ltd (HAL)
| Stock Name | CMP | Market capitalization | EPS | P/B Ratio | ROE | Promoter holding | PE ratio | Dividend yield | ROCE |
| Hindustan Aeronautics ltd | 2797.60 | 93548.25 cr | 181.58 | 4.25 | 29.37% | 75.15% | 15.41 | 1.78% | 30.50% |
Hindustan Aeronautics Ltd. is a state-owned firm with a strong reputation in the aerospace and military engineering industries. Hindustan Aeronautics Ltd is a major participant in India’s defence industry and produces cutting-edge planes and helicopters for the country’s military. With a significant footprint in the Indian industry, it is one of the top defence stocks in india to invest in.
This defence company stocks price to earnings ratio for the stock is 15.41, valuing the firm at about Rs. 93,548.25 crores. Their ROE is 29.37%, and their dividend yield is 1.78%.
#2. Mazagon Dock Shipbuilders Ltd
| Stock Name | CMP | Market capitalization | EPS | P/B Ratio | ROE | Promoter holding | PE ratio | Dividend yield | ROCE |
| Mazagon Dock Shipbuilders ltd | 706.90 | 14257.47 cr | 44.61 | 3.5 | 18.80% | 84.83% | 15.85 | 1.23% | 25.24% |
Mazagon Dock Shipbuilders Ltd. is another defence company that investors may want to look at. It is a state-owned defence company with a stock market listing in India that builds ships for the Indian Navy and Coast Guard. The firm has a market cap more than Rs. 14,257.47 crores and a price-to-earnings ratio of 15.85. The company has a dividend yield of 1.23% and an ROE of 18.80%.
#3. Bharat Dynamics Ltd
| Stock Name | CMP | Market capitalization | EPS | P/B Ratio | ROE | Promoter holding | PE ratio | Dividend yield | ROCE |
| Bharat Dynamics ltd | 987.35 | 18096.27 cr | 25.30 | 5.67 | 17.62% | 74.93% | 39.02 | 0.84% | 25.15% |
The third name in our defence sector stocks list in India is Bharat Dynamics Ltd. This company manufactures missiles and other military gear and is wholly owned by the Indian government. It has a sizable part of the Indian market and a prominent role in the country’s defence industry, making it a top defence stocks in India. The market valuation of the firm is above Rs 18,096.27 crores, and the price-to-earnings ratio is 39.02. Return on equity is 17.62%, while dividend yield is 0.84 %. Bharat Dynamics has supplied missiles to all three branches of the Indian armed services.
#4. Paras Defence and Space Technologies
| Stock Name | CMP | Market capitalization | EPS | P/B Ratio | ROE | Promoter holding | PE ratio | Dividend yield | ROCE |
| Paras Defence and space technologies | 519.45 | 2025.86 cr | 9.61 | 5.59 | 10.76% | 58.94% | 54.04 | – | 14.13% |
Tools for use in aeronautical and military engineering are developed by private business Paras Defence and Space Technologies. Having a diverse variety of goods in defence electronics, aerospace, and homeland security makes it one of the top defence stocks in india to invest in. The company’s market value exceeds 2,025.86 crores, and its P/E ratio is 54.04. The return on equity is 10.76%, and there is no dividend yield.
#5. Cochin Shipyard
| Stock Name | CMP | Market capitalization | EPS | P/B Ratio | ROE | Promoter holding | PE ratio | Dividend yield | ROCE |
| Cochin Shipyard | 487.80 | 6416.54 cr | 43.43 | 1.4 | 14.07% | 72.86% | 11.23 | 3.42% | 19.73% |
Cochin Shipyard is a publicly traded firm that provides ship and submarine construction and repair services. This is one of the best defence stocks to buy in india which is valued at about Rs 6,416.54 cr with a P/E of 11.23. The company has made its name in the list of defence stocks in NSE(National Stock Exchange) as one of the top defence stocks in India. Return on equity is 14.07%, and the dividend yield is 3.42%. Cochin Shipyard, the largest building and maintenance facility in India, has delivered numerous ships to the Indian Navy.
#6. Data Patterns India Ltd
| Stock Name | CMP | Market capitalization | EPS | P/B Ratio | ROE | Promoter holding | PE ratio | Dividend yield | ROCE |
| Data Patterns India ltd | 1666 | 9326.96 cr | 23.27 | 8.29 | 45.76% | 71.61 | 0.21% |
Data Patterns India Ltd. is a private corporation that creates electronic systems for the military. The price-to-earnings ratio for these defence related stocks is 71.61, and its market cap is around $9,326,000,000. Return on equity is 45.76 percent, and dividend yield is 0.21 percent. Data Patterns India is the go-to for the Indian military when it comes to developing and deploying custom solutions. For long-term investing in the defence industry, it is one of the best defence stocks in India.
Conclusion
In recent years, Indian defence stocks have outperformed the broader market, with the Nifty Defence Index returning over 40% in 2022 compared to the Nifty 50’s 15% return.
For those prepared to assume the associated risks, the Indian defence industry offers a promising investment opportunity. Hindustan Aeronautics Ltd, Mazagon Dock Shipbuilders Ltd, and Bharat Dynamics Ltd have all demonstrated consistent growth and profitability.
Investors investing in these defence stocks in India should carefully consider the previously enumerated key factors. Factors such as the company’s financial performance, market share, order book, management quality, and future growth potential in the Indian defence sector. By doing so, investors can make informed decisions and capitalise on the defence sector’s growth potential.
FAQs
Top defence stocks in India?
Ans: HAL, Mazagon Dock, Bharat Dynamics, Data Patterns, Paras Defence, Cochin Shipyard.
Why invest in defence sector stocks?
Ans: Indian govt’s focus on national security drives growth, good investment opportunity.
Are indian defence sector stocks risky?
Ans: Yes, like any other investment, defence stocks come with risks.
How to invest in Indian defence companies stocks?
Ans: Through NSE or BSE by opening trading and demat account with stockbroker.
Key factors to consider for investing in defence stocks?
Ans: Financial performance, market share, order book, management quality, and future growth potential.
