Defence Stocks: A comprehensive overview of top defence companies in India

With the second-largest military in the world and the third-highest military spending, India has become a major force in the global defence industry.

The Indian defence sector is booming, thanks to the government investment and a growing demand for domestic defence products. Our defence industry is working to design, develop, and manufacture cutting-edge military equipment, including sensors, weapons systems, and platforms.

Let’s have a look at top 3 Indian defence stocks which are currently having the highest order book value: 

Hindustan Aeronautics Limited (HAL)  

HAL is a leading aircraft and aerospace products manufacturer. It produces a wide range of aircraft, including fighter jets, helicopters, and transport aircraft. HAL is also developing new aircraft technologies, such as the Light Combat Aircraft (LCA) Tejas. With an order book of Rs 81,784 crore, HAL's sales and net profit have grown at a CAGR of 8% and 28%, respectively, over the past three years. The company's shares have delivered returned around 57.40% in the last year, and presently it has a market capitalization of Rs 1,30,466 crores.

Bharat Electronics Limited (BEL)  

BEL, a leading Indian state-owned aerospace and defence company, manufactures electronic equipment for the Indian military. Its nine factories and regional offices across India produce a wide range of products, including radar systems, communication systems, and electronic warfare systems. BEL is also a major exporter of defence equipment. With a robust order book of Rs 65,356 crore, BEL has achieved top-line growth of 11% CAGR and 64% CAGR growth in the bottom line over the past three years.

Bharat Dynamics Limited (BDL)  

BDL stands as a prominent producer of missiles and guided weapons, boasting a diverse array of missile types that encompass anti-tank, surface-to-air, and air-to-air missiles. BDL also remains at the forefront of pioneering missile technologies, exemplified by its Akash missile system. With three manufacturing units situated in Kanchanbagh (Hyderabad), Bhanur, (Sangareddy District) and Visakhapatnam, BDL is poised for further advancements. The company's export order stands at Rs 2,588 crore, while its overall order book value totals Rs 20,408 crore, accompanied by a noteworthy market capitalization of Rs 18,645 crore.

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The substantial order book values of these premier defence companies show the Indian defence industry's expanding capabilities. The Make in India effort of the Indian government, which attempts to lessen India's reliance on imported defence equipment, is greatly aided by the performance of Indian defence companies. It is gaining pace, and Indian defence industries are becoming more competitive, as evidenced by the significant orders received by many more companies.

Disclaimer: The article is for informational purposes only and not investment advice.