Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Best Defence Stocks in India

If want to find the best defence stocks in India, you will need to dig deep into the defence sector.

The long-term prospects of this sector are bright and there are many good companies in this space.

But estimating future profits of these companies will be a challenge for investors.

Investors can consider defence stocks for investment but before taking a call to buy them, you must check their fundamentals.

First, as an investor, you should study and understand the defence ecosystem in India. This is vital if you want to find the best defence stocks.

This is because companies in the defence sector operate within the ecosystem. In other words, ecosystem connects them all. They cannot deliver a profit if one aspect of the ecosystem is not functioning properly.

Also pay close attention to the government’s policies. These will be vital for the growth of the sector.

Stick to companies with low debt, a strong track record, competent management, and a healthy order book. This combination is necessary in all good defence sector stocks.

Also, check for future opportunities once the current order book is executed. Finally, pay a reasonable price for the stock.

This way you won’t go wrong with your next defence stock purchase.

You can get started with Equitymaster’s screener for defence stocks. Also check out the list of defence stocks in the market.


Top 4 Defence Exporting Stocks to Add to Your Watchlist

Apr 4, 2024

India's defence exports hits record high. Here are the top four stocks to watch out for.

Railways and Defence: Which Stocks Can Handle the Booming Indian Stock Market?

Feb 26, 2024

How are railway stocks and defence stocks shaping up this year? Find out...

How Indian Defence Stocks are Shaping Up for 2024

Jan 29, 2024

How is this hot sector likely to perform in 2024? Find out...

Can Mazagon Dock's Unique Opportunity in Submarine Tourism Propel the Stock to New All Time High?

Jan 11, 2024

This innovation at sea could improve Mazagon Dock Shipbuilders' fortunes.

Why Avantel Share Price is Rising

Nov 28, 2023

After rallying over 300% in 2023 so far, this multibagger smallcap stock hits upper circuit.

Multibagger Defence Stock Announces Stock Split and Interim Dividend

Nov 8, 2023

While stock splits do not affect the underlying business, it is undeniable that there is price movement around stock split announcements and execution of the same.

Smallcap Defence Company Declares 2:1 Bonus Issue; Stock Zooms 20%

Oct 10, 2023

Avantel shares are up 4x in a year. Read on to find out factors driving the rally and what lies ahead.

Top 4 Defence Stocks Which Pay Good Dividends

Jun 13, 2023

Along with strong growth potential, these defence companies are also rewarding shareholders with good dividends. Take a look...

Defence Sector Stocks Are Rising. Does the Rally Have Enough Steam?

Jun 6, 2023

Indian defence sector stocks are on a roll in recent weeks. Find out whether this is a short term rally or stocks will continue their momentum.

Top 5 Defence Companies in India by Growth

Jan 3, 2023

Defence stocks are being hailed as multibagger stocks of the future. And the reasons are compelling. Keep these five high growth defence companies on your watchlist.

The Best Defence Stocks are Not Hiding in Plain Sight

Feb 29, 2024

Are you investing in these hidden defence stocks?

The Long Term Upside in India's Defence Exports Megatrend

Feb 8, 2024

Should you consider Indian defence stocks now? Find out...

Best Defence Stock: Mazagon Dock vs Cochin Shipyard

Jan 14, 2024

Which defence shipbuilding stock has a better chance of faring well against the other in 2024? Find out...

New All-Time High for 6 Indian Defence Stocks: Should You Invest?

Dec 8, 2023

Defence stocks are rising post state election results and these six companies are taking the charge.

Multibagger Smallcap Stock Plans Rs 1,400 Crore Fundraise for its Semiconductor Business

Nov 20, 2023

Can this heavy investment propell the small-cap defence stock into semiconductor stardom?

Top 5 Defence Stocks to Watch Out in Nifty's Run-up to 40,000

Oct 13, 2023

As Nifty inches towards new highs, these defence stocks could also benefit given the massive push by the government.

Damani Exits Smallcap Defence Stock. What Investors Need to Know.

Jul 11, 2023

The ace investor's name is missing from the latest shareholding pattern of this defence firm. Find out more details about the company inside and why Damani sold his stake in Q1.

Defence Stock Zooms 10% on Debut. More Details Inside...

Jun 12, 2023

Will this newly listed company be a big beneficiary of the defence megatrend in India?

Top Defence Stocks to Watch Out as India Approves Rs 70,500-Crore Order

Mar 23, 2023

India's recent purchase of military equipment worth Rs 705 billion (bn) has given a fresh boost to the defence sector.

End Your Search for the Best Indian Defence Stocks to Buy

Dec 29, 2022

What if I were to tell you that one of the most laid-back sectors is now on steroids?




FAQs

Which are the top defence companies in India?

Based on marketcap, these are the top defence companies in India:

You can see the full list of defence stocks here.

And for a fundamental analysis of the above companies, check out Equitymaster’s Indian stock screener which has a separate screen for best defence stocks in India.

When should you invest in the defence sector?

The best time to invest in the defence sector is when valuations of defence companies are attractive.

Where can I find a list of defence stocks?

The details of listed defence companies can be found on the NSE and BSE website. For a curated list you can check out our list of defence stocks.

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.

What are the top gainers and top losers within the defence sector today?

Within the Defence sector, the top gainers were KAYNES TECHNOLOGY (up 3.5%) and PREMIER EXPL. (up 3.2%). On the other hand, RELIANCE NAVAL & ENG. (down 4.6%) and KRISHNA DEFENCE (down 4.3%) were among the top losers.