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Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




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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.


Top 5 Defence Stocks Down Upto 50% from Highs

Nov 8, 2024

A correction in the stock price of these defence stocks could mean a promising investment for the long term.

Top Defence Stocks Poised to Benefit from Defence Acquisition Council's Rs 1.4 Trillion Order

Sep 6, 2024

These companies could be the biggest beneficiaries of defence acquisition council's latest Rs 1.4 trillion procurements.

Top 4 Undervalued Defence Stocks in the Current Market

Aug 7, 2024

India's prospects of being a long-term player in global defence manufacturing merits long term investment.

Top 10 Defence Stocks in India Ranked by Order Book Value

Jun 25, 2024

With defence stocks witnessing unprecedented growth, driven by increased government spending, here are the top stocks with strong order books to keep on your radar.

Which Companies Manufacture Defence Equipment in India?

Jun 12, 2024

These are 5 defence equipment stocks to keep on your radar.

Why Cochin Shipyard Share Price is Rising

May 27, 2024

Share price of the defence shipbuilder has rallied over 75% in the past 10 trading sessions!

Up 275% in a Year, This Defence Stock's Growth Is Just Getting Started

May 13, 2024

Foreign investors (FIIs) have increased their holding in the defence stock from 1.4% to 11.4% in less than a year.

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...

Why Avantel Share Price is Rising

Oct 7, 2024

The multibagger stock is up more than 5,000% in the last five years and continues to rise. Here's why.

5 Battered Defence Stocks: Hidden Gems or Value Traps?

Aug 12, 2024

Despite the defence sector's strong performance in recent times, these five stocks have faced notable corrections. Here's why.

Defence Stocks to Benefit from Modi Government's Latest Aatmanirbhar Bharat Push

Jul 21, 2024

How is this hot sector likely to perform in light of the fifth positive indigenisation list? Find out...

Pros and Cons of Investing in Cochin Shipyard Right Now

Jun 19, 2024

The stock of Cochin Shipyard is on fire. Should you be interested? Find out...

Top Defence Shares in India 2024: Defence Companies to Add to Your Watchlist

Jun 2, 2024

With a continuously growing defence budget and increasing export opportunities, these defence stocks are poised for a further ascent.

Investing in Indian Defence? Here are the Top 5 PSU Defence Stocks

May 15, 2024

PSU Defence stocks have outperformed broader markets by wide margins. Here's top 5 to keep an eye on.

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.




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 HIGH ENERGY (up 3.2%) and PTC INDIA (up 1.9%). On the other hand, RELIANCE NAVAL & ENG. (down 4.6%) and KRISHNA DEFENCE (down 2.0%) were among the top losers.