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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.

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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?

Here's Why India's Next Wealth Creators Could be Defence Stocks

Sep 14, 2022

Defence stocks are being hailed as the multibagger stocks of the future. We believe the reasons are compelling.

The Future for Defence Stocks Keeps Getting Better. Here's All You Need to Know...

Jul 20, 2022

The Indian defence sector is experiencing accelerated growth. With government supporting homegrown industries, the future of defence stocks looks promising.

Top 5 Defence Stocks to Add to Your Watchlist

Feb 7, 2022

These defence stocks are all set to benefit from the government's 'Atmanirbhar Bharat' initiative.

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.

How to Find the Best Defence Stocks to Buy

Dec 20, 2022

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

Defence Stocks: The Multibagger Sector of the Future

Sep 3, 2022

Defence is one of PM Modi's top picks in his rigorous 'Make in India' push.

6 Defence Stocks with Big Growth Stories. Watch Out for Them

Apr 26, 2022

These defence stocks might benefit from the growing defence budgets across the globe.

My Top 3 Defence Stocks to Buy Now

Mar 19, 2019

The urgency to privatise India's defence sector to make India self-reliant was never as strong as it is today.


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 AVANTEL SOFT (up 7.1%) and BHARAT DYNAMICS (up 2.7%). On the other hand, RELIANCE NAVAL & ENG. (down 4.6%) and PREMIER EXPL. (down 2.3%) were among the top losers.