Overview
In recent times Defense sector stocks are in focus. Market has started to take notice of them and some of them have given stellar returns in recent times. This sector is touted as one of the most benefited sector by Make in India campaign.
In this article I will list Defense sector stocks which you can make list of. It will contain list of both public sector companies along with private sector companies. It will list Small Cap and Micro cap stocks as well.
Public Sector Defense Stocks
Below are the list of public sector defense sector stocks. The stocks are not ordered in list of preferences or market cap. You can explore them for more details about them.
Bharat Electronics BEL
It has given more than 50% return this year as of this writing. It is large cap defense sector stock. It is the leading defense sector Company. It is one of the Navaratna company. It has wide range of business segments including
- Defense – Under this segment it manufactures Electronic warfare system, Radar systems, Weapons systems and simulators and other defense communication products.
- Non Defense – This segment includes Cyber security and E Mobility
- Software services and Electronics manufacturing services.
Hindustan Aeronautics Limited HAL
It has given more than 90% returns this year. It is also large cap defense sector stock. It is newly listed stock on exchanges. It is in business of manufacturing fighter jets, helicopters, marine gas turbine engines and jet engines.
The recently launched first indigenous design and built aircraft carrier INS Vikrant uses gas turbine engine produced by this company.
It has also bagged order worth 860 crore INR for PSLV. These initiatives have propelled the stock prices for the company this year.
Mazagon Dock
It is small cap defense sector stock. It has given more than 50% return this year as of this writing. The company is in business of manufacturing Warships and Submarines. It is the only company which is in business of submarine manufacturing. It has also manufactured indigenous built sub marines as well.
INS Shalki, INS Shankul and Scorpene are three major sub marines delivered by this Company. Submarines are large contract types (worth thousand of crores for one).
Private Sector Defense Stocks
Above we have seen unique public sector defense sector stocks. Now lets see private sector defense sector stocks. I have specially chosen stocks which have major revenue from defense sector. This disqualifies stocks like Larsen and Toubro which does have presence in defense sector and is well known.
Paras Defense and Space technologies
This is newly listed stock on exchanges. It has not given returns to investors this year but is a pure play small cap defense sector stock. It has wide range of products having application in below fields
- Rocket and Missile
- Space and Space research
- Naval System
- Land and Armored vehicle
- Electronic warfare and surveillance
- EMP solutions
Data Patterns India Limited
It is small cap company. It has given more than 45% returns this year. It claims to be product company. It has products for Defense and Aerospace applications in different terrain. It also has presence in Electronics warfare system.
It is also supplier of launch and fire control systems for Land and Air for Brahmos. The design and production facility is approved by Indian defense, ISRO and multinational companies of Europe and US.
Zen Technologies
It is a micro cap company. It has not given returns this year as of this writing but is a pure play defense sector stock. It provides defense solutions as mentioned below
- Drone solutions – Anti Drone system and heavy lifting logistics drones
- Combat training center
- Live ranges – Live fire training for Indoor as well as Outdoor
- Live Simulation – Used for military training or mission rehearsals
- Virtual Simulation – Virtual simulation for tanks and other military items
Conclusion
There are few more defense sector stocks which can be listed here but my idea was to list the ones which are unique. I tried listed the ones which are from private sector as well as public sector and belong to different market caps.
Small stocks were preferred as they are relatively unknown. Some stocks like L&T and Tata Motors or Mahindra and Mahindra were ignored as they have small percentage of business comes from defense space.