Which are the top defence companies in India right now?
These companies have been ranked as per their market capitalization. The higher the market cap, the higher the total value of the company.
Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.
When should you invest in the defence sector?
What kind of dividend yields do defence stocks offer?
The defence sector does not have a consistent trend of dividend yields. Different companies have different dividend policies which vary depending on the owners discretion and the market scenario.
For more details, check out our list of top defence stocks offering high dividend yields.
What are the metrics used to evaluate defence companies?
Two commonly used financial ratios in the valuation of defence stocks are:
Price to Earnings Ratio (P/E) - One can also use Price to Earnings ratio (P/E) which compares a firm's market capitalization to its with its earnings per share. The higher the P/E ratio, the more overvalued the stock and vice versa.
To find stocks with favourable P/E ratios, check out our list of defence stocks with their P/E ratios.
Price to Book Value Ratio (P/BV) - One can also use Price to Book Value Ratio (P/BV) which compares a firm's market capitalization to its book value. The lower the ratio, the more undervalued the stock is and vice versa.
To find stocks with favourable P/BV ratios, check out our list of defence stocks with their P/BV ratios.