Defence stocks are strong candidates for long-term wealth creation.
The government's push for self-reliance in defence will be a massive tailwind for these stocks. Many defence companies will likely pop up over the next few years. These businesses will cater to new ideas that the market is probably not even aware of.
The biggest catalyst of Make in India initiative for the defence sector was the government scrapping some major defence procurements from abroad. The scrapped orders include big ticket purchases of helicopters, all-terrain vehicles (ATVs) and short-range missiles, among others.
The long-term prospects of this sector are bright. But picking the right stocks will be a challenge.
This is because India's defence capabilities go beyond what is visible on the stock market indices. There are unlisted firms and niche hi-tech startups paving their way to become global defence suppliers.
As an investor, it's vital to understand the entire defence ecosystem in India if you want to pick the best stocks in this space.
Also, if the past has taught us anything, it's that you must have a long-term view and not get caught up in short term trends.
So how can you find the best defence stocks?
Here's a checklist...
And last but not least, check the stock's valuations. Check both the price to book ratio and the price to earnings ratio. They shouldn't be too high.
You can get started with Equitymaster's screener for defence stocks. Also check out the list of defence stocks in the market.
Stocks in the defence space can offer good investment returns if you pick them carefully.
Nov 8, 2024
A correction in the stock price of these defence stocks could mean a promising investment for the long term.
Oct 19, 2024
As India aims for greater self-reliance, the warship sector is poised for significant growth. Here are key warship manufacturing companies to add to the watchlist.
Oct 12, 2024
Amidst the expanding defence and drone landscape, these Adani group companies are positioning themselves as key players.
Oct 7, 2024
The multibagger stock is up more than 5,000% in the last five years and continues to rise. Here's why.
Aug 27, 2024
This is why you need to look beyond the big names in the defence sector.
Aug 12, 2024
Despite the defence sector's strong performance in recent times, these five stocks have faced notable corrections. Here's why.
Jul 21, 2024
How is this hot sector likely to perform in light of the fifth positive indigenisation list? Find out...
Jul 7, 2024
Here's everything that happened in the stock market this week.
Jul 3, 2024
Shares of this small-cap stock hits records high. Is it fuelling for take-off or short-term bump?
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.
Oct 29, 2024
Becoming a part of the global supply chain is key to success for Indian drone stocks.
Oct 16, 2024
Growth of India's indigenous drone ecosystem depends on such deals.
Oct 10, 2024
From missiles to tanks, these Indian companies manufacture critical war equipment that may be used in the Israel-Iran conflict.
Sep 6, 2024
These companies could be the biggest beneficiaries of defence acquisition council's latest Rs 1.4 trillion procurements.
Aug 15, 2024
What are the best fintech stocks in the market today? Find out...
Aug 7, 2024
India's prospects of being a long-term player in global defence manufacturing merits long term investment.
Jul 20, 2024
Here's everything that happened in the Indian stock market this week.
Jul 3, 2024
Companies aiding India's frontline ship building stocks have more upside.
Jun 30, 2024
The need for being self-reliant in terms of manufacturing defence equipment is gaining momentum. Read on to find out more.
Jun 19, 2024
The stock of Cochin Shipyard is on fire. Should you be interested? Find out...