Debt Free Defence Stocks To Keep An Eye On

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Debt free defence stocks to keep an eye on

PSUs, or public sector undertakings, are inextricably linked to the country’s core sectors and have successfully expanded the country’s industrial base. The majority of these businesses are owned by the Indian government.

Defense stocks are shares of companies that manufacture and supply military equipment and services. Investors frequently consider them in the context of geopolitical events and defense budgets.

Hindustan Aeronautics Ltd

Hindustan Aeronautics Limited is an Indian company that designs, develops, manufactures, repairs, overhauls, upgrades and services a wide range of products, including aircraft, helicopters, aero engines, avionics, accessories, and aerospace structures.

Hindustan Aeronautics Ltd is a debt-free company, with a low price-to-earnings ratio of 33 compared to its peers, with a return on equity of 27 percent, a return on capital employed of 30 percent, and a net profit margin of 21 percent.

The company is also a multi-bagger the share price increased by 59 percent in the last six months and 145 percent last year, for instance, if an investor invested Rs 1 Lakh a year ago the current value of the investment would be Rs 2.45 Lakhs.

Net revenue of Hindustan Aeronautics Ltd rose by 9.5% YoY, from ₹5,145 crore in Q2FY23 to ₹5,636 crore in Q2FY24. In addition, the net profit increased by 2% YoY, from ₹1,209 crore in Q2FY23 to ₹1,235 crore in Q2FY24.

Monopoly defense stock closed by 1.9% up at ₹3,028 per share from its previous close of ₹2,969.15 on Friday with a market capitalization of 2,02,500 Crores.

Bharat Dynamics Ltd

Bharat Dynamics Limited is an Indian company that manufactures missiles and other defense equipment. The Indian Armed Forces and the Government of India receive the vast majority of the Company’s goods and services.

Debt-free company Bharat Dynamics Ltd has a return on equity ratio of 11%, a return on capital employed of 15%, and a net profit margin of 14%.

With a market capitalization of ₹31,370 crores, it is a midcap company, the share price of the company rose by 47% in the last six months and 86% last year.

Bharat Dynamics Ltd’s Net revenue rose by 15% YoY, from ₹535 crore in Q2FY23 to ₹616 crore in Q2FY24. In addition, the net profit increased by 2% YoY, from ₹76 crore in Q2FY23 to ₹147 crore in Q2FY24.

On Friday the share price closed by 0.30% down at ₹1,712 per share from its previous close of ₹1717.20 per share.

Bharat Electronics Ltd

Bharat Electronics Ltd, founded in 1954, manufactures and supplies electronic equipment and systems for the defense sector. The company has a limited presence in the civilian market.

The company is debt-free, with a low price-to-earnings ratio of 41 when compared to its competitors, a return on equity of 22%, a return on capital employed of 27%, and a net profit margin of 16%.

Bharat Electronics Ltd is a large-cap company with a market capitalization of ₹1,40,000 crores, the share price has risen by 56% in the last six months and 86% last year.