Best Defence Stocks in India
Defence stocks are shares of companies involved in the design, development, and manufacture of military systems and products. Here’s the list of defence stocks listed in NSE.
Best Defence Stocks In India
Defense Stocks
List of Defense stocks listed in NSE.
last updated at 6:30 PM IST
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Showing 1 - 13 of 13 results
last updated at 6:30 PM IST
| NameStocks (13)↓ | ↓Sub-SectorSub-Sector↓ | ↓Market CapMarket Cap↓ | ↓Close PriceClose Price↓ | ↓PE RatioPE Ratio↓ | ↓1M Return1M Return↓ | ↓6M Return6M Return↓ | ↓1Y Return1Y Return↓ | ↓PB RatioPB Ratio↓ | ↓Return on EquityReturn on Equity↓ | ↓ROCEROCE↓ | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Hindustan Aeronautics LtdHAL | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 2,88,041.392,88,041.39 | 4,300.004,300.00 | 37.8037.80 | 8.058.05 | 2.452.45 | 8.958.95 | 9.889.88 | 28.9128.91 | 24.5824.58 | |
| 2. | Bharat Dynamics LtdBDL | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 52,319.4752,319.47 | 1,429.601,429.60 | 85.3985.39 | 9.059.05 | 36.1236.12 | 39.7139.71 | 14.3914.39 | 17.8917.89 | 11.3411.34 | |
| 3. | Data Patterns (India) LtdDATAPATTNS | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 12,156.3612,156.36 | 2,153.002,153.00 | 66.9166.91 | 23.6623.66 | -4.68-4.68 | -29.74-29.74 | 9.189.18 | 14.5914.59 | 18.7518.75 | |
| 4. | Unimech Aerospace and Manufacturing LtdUNIMECH | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 5,206.225,206.22 | 981.30981.30 | 89.5589.55 | -2.03-2.03 | -28.70-28.70 | -28.70-28.70 | 47.9447.94 | 73.8673.86 | 65.9265.92 | |
| 5. | Paras Defence and Space Technologies LtdPARAS | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 4,320.294,320.29 | 1,072.451,072.45 | 134.76134.76 | 5.205.20 | 9.929.92 | 41.6441.64 | 9.759.75 | 7.487.48 | 10.3110.31 | |
| 6. | NIBE LtdNIBE | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 2,203.392,203.39 | 1,497.601,497.60 | 118.97118.97 | 64.1564.15 | -8.16-8.16 | -3.23-3.23 | 11.7811.78 | 14.1414.14 | 13.0313.03 | |
| 7. | ideaForge Technology LtdIDEAFORGE | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 1,612.481,612.48 | 376.40376.40 | 35.6135.61 | -4.99-4.99 | -40.38-40.38 | -45.34-45.34 | 2.442.44 | 9.199.19 | 9.769.76 | |
| 8. | Sika Interplant Systems LtdSIKA | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 1,605.221,605.22 | 751.10751.10 | 82.9182.91 | 45.3845.38 | 48.1248.12 | 93.0393.03 | 15.5215.52 | 20.4720.47 | 24.0124.01 | |
| 9. | Rossell Techsys LtdROSSTECH | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 1,191.771,191.77 | 322.45322.45 | 106.31106.31 | 5.455.45 | -39.36-39.36 | -39.36-39.36 | 9.429.42 | -- | 19.2519.25 | |
| 10. | CFF Fluid Control LtdCFF | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 1,000.001,000.00 | 523.75523.75 | 58.5558.55 | 13.8013.80 | -5.56-5.56 | 13.7413.74 | 7.947.94 | 22.6322.63 | 19.9719.97 | |
| 11. | Taneja Aerospace and Aviation LtdTANAA | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 776.75776.75 | 310.65310.65 | 69.7969.79 | -10.41-10.41 | -28.00-28.00 | -34.83-34.83 | 5.965.96 | 9.289.28 | 11.2811.28 | |
| 12. | High Energy Batteries (India) LtdHIGHENE | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 433.36433.36 | 490.05490.05 | 25.2525.25 | -3.80-3.80 | -17.47-17.47 | -45.96-45.96 | 4.944.94 | 21.2921.29 | 27.4027.40 | |
| 13. | TechEra Engineering (India) LtdTECHERA | Aerospace & Defense EquipmentsAerospace & Defense Equipments | 222.21222.21 | 129.65129.65 | 45.9145.91 | -8.93-8.93 | -30.52-30.52 | -1.22-1.22 | 13.9813.98 | 35.8835.88 | 32.5932.59 |
Update: Union Budget FY 2025-26 on Defence Sector
Total Allocation
- ₹6.81 lakh cr. allocated to the Ministry of Defence (9.53% increase).
- Constitutes 13.45% of the total Union Budget.
Key Budget Segments
- Capital Outlay: ₹1.80 lakh cr. (26.43%) for modernization, with 75% reserved for domestic procurement.
- Revenue Expenditure: ₹3.11 lakh cr. (45.76%) for salaries, maintenance, and operations.
- Defence Pensions: ₹1.60 lakh cr. (23.60%) with ₹8,317 cr. for veterans' healthcare.
Strategic Investments
- Border & Maritime Security: ₹7,146 cr. for BRO, 43% rise in Coast Guard budget.
- R&D Focus: ₹31,277 cr. for AI, robotics, and emerging tech.
The budget prioritises self-reliance, modernisation, and defense infrastructure, strengthening security and economic growth under Aatmanirbhar Bharat.
Overview of Defence Stocks in India
Hindustan Aeronautics Ltd
Established in 1940, Hindustan Aeronautics Ltd (HAL) is a premier aerospace and defence company in India. It is involved in the design, development, manufacture, and maintenance of aircraft, helicopters, engines, and related systems. HAL plays a critical role in India’s defence sector and is one of the most prominent defence technology stocks in the country.
Sika Interplant Systems Ltd
Sika Interplant Systems Ltd, founded in 1985, is an aerospace engineering company specialising in the design, development, and manufacturing of components and systems for the defence and aerospace sectors. The company offers a range of engineering solutions, including test systems, airframe systems, and aircraft refurbishment. Sika has shown strong defence stock performance in recent years.
Bharat Dynamics Ltd
Bharat Dynamics Ltd, established in 1970, is a leading manufacturer of guided missile systems in India. The company produces a wide range of defence equipment stocks, including surface-to-air missiles, anti-tank guided missiles, and underwater weapons, catering to the requirements of the Indian Armed Forces. It is considered a key player in the defence stock market.
Taneja Aerospace and Aviation Ltd
Founded in 1994, Taneja Aerospace and Aviation Ltd is involved in the manufacturing, maintenance, and repair of aircraft. The company also provides aviation services, including aircraft charter and pilot training. It is known for being one of the few private defence stocks in India that operate with an airstrip.
Paras Defence and Space Technologies Ltd
Paras Defence and Space Technologies Ltd, established in 2009, is engaged in the design, development, and manufacturing of defence and space engineering products. The company’s offerings include defence electronics, defence optics, and space imaging components, catering to a range of military and space applications. As one of the emerging defence industry stocks, Paras Defence has attracted significant investor interest.
Advantages of Investing in Defence Stocks
Steady Revenue Stream
Defence sector stocks often secure long-term contracts with the government, providing a stable and predictable revenue stream. This stability may help buffer the companies against economic downturns and market volatility.
Technological Advancements
Defence technology stocks are typically at the forefront of innovation. By investing in these companies, investors can gain exposure to cutting-edge technologies and developments in aerospace, cybersecurity, and advanced weaponry.
Government Support
The Indian government’s emphasis on self-reliance and indigenous production, under initiatives like “Atmanirbhar Bharat,” provides significant support to the domestic defence sector. Policies aimed at reducing dependence on foreign imports can boost the growth of Indian defence shares.
Strong Market Demand
The ongoing need for national security and defence spending creates consistent demand for defence products and services. This demand is driven not only by domestic requirements but also by international markets, as countries continually invest in their military capabilities, leading to strong defence stock trends.
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Factors to Consider Before Investing in Defence Stocks
Financial Performance and Stability
Investors may want to analyse the financial health of defence companies, including revenue growth, profit margins, debt levels, and cash flow. A company with strong financials might indicate the ability to withstand market fluctuations. However, past defence stock performance does not guarantee future growth, making thorough analysis crucial.
Government Contracts and Policies
Defence sector shares often rely heavily on government contracts, which can be a stable source of revenue. It is important to consider a company’s history and future prospects of securing contracts within the Indian defence system. Additionally, government policies promoting domestic production, such as India’s “Atmanirbhar Bharat,” can significantly impact the growth potential of defence stock investment strategies.
Technological Innovation
The defence industry is driven by technological advancements. Companies investing in research and development to create cutting-edge technologies and systems may have a competitive advantage. Assessing a company’s innovation capabilities and pipeline of new products can provide insights into its long-term defence stocks potential.
Geopolitical Environment
The geopolitical climate can have a significant impact on defence stocks in India. Tensions or conflicts can lead to increased defence spending by governments, benefiting defence companies. Conversely, periods of geopolitical stability might result in reduced defence budgets. Understanding the current geopolitical environment is crucial for evaluating defence stock forecasts.
Diversification and Market Reach
Companies with a diversified portfolio of products and services, as well as a broad market reach, might be better positioned to handle market fluctuations. Evaluating the range of products and the geographical markets a company serves can provide a clearer picture of its risk and growth potential.
Regulatory Compliance
The defence sector is subject to stringent regulations. Ensuring that a company complies with these regulations is critical to avoiding potential legal and operational risks. Investors may want to research the regulatory landscape to assess the stability of their defence stock investment strategy and its effects on defence stock prices.
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Frequently Asked Questions on Defence Stocks
1. How can I identify the top defence shares in India?
To identify the best defence stocks, you can analyse financial reports, monitor government contracts, and stay updated on political developments influencing the defence sector.2. Which is the top-performing defence sector stock in India?
On the basis of 1Y return performance, Sika Interplant Systems Ltd has been the best-performing defence stock in India in the past year.3. What risks are associated with investing in defence stocks?
Investing in defence stocks, including defence exports stocks, carries risks such as budget constraints, regulatory changes, and geopolitical tensions affecting defence budgets. Investors may mitigate these risks through thorough research and diversification.4. Do defence shares typically offer dividends?
Dividend payouts depend on a company’s financial performance. Many defence blue-chip stocks have recorded net profits in the past, making them potential dividend payers. It is advisable to check the dividend history of specific defence shares before investing.5. Can defence sector stocks be considered as long-term investments in India?
Long-term defence stocks in India have gained attention due to increasing government spending, indigenisation efforts, and geopolitical factors. Their long-term potential depends on policy stability, technological advancements, and global demand. Investors may evaluate risks like regulatory changes and budget allocations before considering them within a diversified portfolio.
