Defence stocks that you didn’t know existed in the Indian markets 2024

India, with the world’s third-largest armed forces and significant Defence imports, prioritizes self-reliance in Defence through the “Aatmanirbharta” program. Defence production rose 15% to $13.6 billion in 2022.

Defence stocks that you didn’t know existed in the Indian markets

In order to support the Defence industry, the government prioritizes predictability, transparency, and ease of doing business. India, home to 194 Defencetech startups, hopes to export $15 billion worth of equipment by 2026 and reach a $25 billion domestic manufacturing turnover in five years.

Here are some of the Micro-cap defence stocks. 

High Energy Batteries (India) Ltd 

High Energy Batteries (India) Limited is a well-known manufacturer of high-tech batteries for use in military, naval, air force, and launch vehicles, as well as commercial batteries for automotive and standby VRLA applications.

The company has contributed to the defence sector by taking part in various defence projects, including the indigenization of torpedo propulsion batteries for the Indian Navy and various DRDO Labs.

High Energy Batteries (India) Ltd has also developed and supplied Nickel Cadmium Batteries to the Indian Air Force and Navy for use in a variety of aircraft and helicopters. The company provides a variety of defence batteries, including aircraft, torpedo, missile, and helicopter batteries.

High Energy Batteries (India) Ltd is a Micro-cap stock with a market capitalization of ₹554 crores, the share price of the company rose by 5% in the last six months and 68% in the last year.

The net revenue of the company has decreased by 37% YoY from ₹27.05 to ₹16.89, and the net profit of the company decreased by 55% YoY from ₹7.22 to ₹3.25 in the recent December quarter report.

However, the company’s profit and loss are increased on an annual basis. Additionally, On Wednesday, the share price opened 0.6% up at ₹537.75 per share from its previous close of ₹541.

Krishna Defence & Allied Industries Ltd

Krishna Defence & Allied Industries Limited, headquartered in India, manufactures a wide range of defence and security equipment. They have a large in-house capability for designing, developing, and producing critical assemblies and precision machining for defence applications.

Krishna Defence & Allied Industries Limited is one of India’s few vertically integrated defence solutions providers, with research and development capabilities including product design, engineering, simulation, prototyping, and testing.

The company products like a Ship Building Steel Section, weld consumables, Ballast Bricks, and a Special Profile (Armoured Vehicle).

Krishna Defence & Allied Industries Limited’s net revenue rose by 80% YoY from ₹19.55 to ₹35.23, and the net profit of the company rose by 60% YoY from ₹1.64 to ₹2.63 in their September quarter.

On Wednesday, the share price rose 1.3% up at its intraday high of ₹355.25 per share from its previous close of ₹359.95 with a market capitalization of ₹442 crores. The share price has risen 98% in the last year and 78% in the last six months.

Sika Interplant Systems Ltd 

Sika Interplant Systems Ltd specializes in defence electronics, specifically electronic warfare, signal processing, and communication systems. Engineering, manufacturing solutions, projects and systems integration, MRO, and other aerospace and defence-related services are among the company’s primary businesses.

Sika Interplant Systems Ltd strengthens India’s defence technology by offering cutting-edge products and solutions to the aerospace and defence industries. The company offers Search and rescue (SAR), Landing gear and hydraulics, interconnection systems, handling systems, and others.

Sika Interplant Systems Limited’s net revenue rose by 36% YoY from ₹13.35 to ₹18.26, and the net profit of the company rose by 137% YoY from ₹2.11 to ₹5.01 in their September quarter.

The share price of the company rose by 111% in the last six months and 125% in the last year, for instance, if an investor invested ₹1 Lakh a year ago the current value would be ₹2.25 Lakhs.

With a market capitalization of ₹678 crores, the share price has opened up 2.3% to ₹1,622.80 per share from its previous close of ₹1,586 on Wednesday.