In last few years India’s defense sector has witnessed tremendous growth and much more is yet to come in future. With Government of India’s “Make in India” and “Atmanirbhar Bharat” initiatives many Public and Private sector companies related to this sector have been benefitted a lot.

In past India used to procure Defense Equipments, missiles, tanks, planes etc. but since last few years or to be precise since 2019 India’s defense sector has witnessed continuous uptrend and is achieving new heights day by day. Organizations such as DRDO, ISRO, Indian Army, Indian Navy and Indian Airforce are working hand in hand with the companies to Design, Manufacture and Supply products related to Defense in India itself.

And now the world is witnessing “New India”, which has not only reduced its dependence on other countries but also increased its exports to other developing nations. Many Indian companies have bagged orders from other nations to supply Defense Equipments as well as warfare planes.

There are many listed and unlisted companies which cannot be separated from the growth story of India’s Defense Sector. They are as follows:

1. Bharat Electronics Limited

BEL is a multi-product, multi-technology, multi-unit company serving in diverse fields in India and abroad. Company won order for Akash Missile System from the Indian Air Force, Radar Warning Receiver (RWR) and Missile Approach Warning System for the prestigious C295 aircraft programme from Airbus, different airborne electronic systems for 83 Tejas MK1A fighter aircraft Instrumented Electronic Warfare Range (IEWR) for the Indian Air Force and Advanced Electronic Warfare (EW) suite for Fighter aircraft of Indian Air Force Currently its orderbook is around Rs 55,000 crore. Recently, company’s ingeniously developed Train Collision Avoidance System (TCAS) is under trial. DMRC has completed the ingenious Automatic Train Supervision system (i-ATS) developed by BEL and may be ordered by them soon. More detailed report on Bharat Electronics Limited - Research Report (smartinvestment.in) is already available on our website.

2. Astra microwave Products Ltd

Astra Microwave Products Ltd is engaged in designing and manufacturing of high value-added RF and microwave super components and sub-systems finding applications in Defence Space and Civil communication systems. Its joint venture company, Astra Rafeal Comsys looks products such as Electro Optic (EO) systems and Airborne EQ systems for Laser Designation & Recce applications which are being used on fighter aircrafts. Recently, Ace investor Radhakishan Damani held 1.03% stake, in Astra Microwave Products. Company received order of transmit receive modules and MET towers from ISRO Telemetry Tracking and Command Network, remote unmanned automatic weather stations in 550 locations across India from Indian Meteorological Department and many other orders from DRDO and MoD. Many of these are, especially, in radar and electronic warfare systems where the company has proven expertise. More detailed report on Astra Microwave Products - Research report (smartinvestment.in) is already available on our website.

3. Hindustan Aeronautics Ltd.

HAL is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures which can meet the requirement of Indian Defence Forces (namely Indian Airforce, Indian Navy, Indian Army and Indian Coast Guard) in the area of Aerospace. HAL is planning to setup office in Malaysia which will help in tapping the new business opportunities for Fighter Lead-in Trainer (FLIT), LCA (Light Combat Aircraft) and other requirements of Royal Malaysian Air Force (RMAF) like Sukhoi-30 MKM and Hawk upgrades. Recently HAL signed a contract for supply and manufacture of 88 TPE331-12B engines/kits along with maintenance and support services to power the Hindustan Trainer Aircraft (HTT-40), 83 Light Combat Aircraft Tejas from Cabinet Committee on Security chaired by Prime Minister Narendra Modi, four light utility helicopters (LUHs) a new generation helicopter in the 3-tonne category that has state-of-the-art technology features like a glass cockpit with multi-function displays (MFD) and is powered by a single turboshaft engine for Indian Airforce and Indian Army HAL will soon launch technology named unmanned aerial vehicles by the name Combined Air Teaming System (CATS) which will have a mother ship, operating from faraway, and four autonomous known as CATS Warrior with a capacity to carry out strike stealthily entering 700 kilometers inside enemy territory.

4. Bharat Dynamics

Bharat Dynamics Limited (BDL) is engaged in the manufacture of Surface to Air missiles (SAMs) Anti-Tank Guided Missiles (ATGMs) underwater weapons launchers countermeasures and test equipment. It is the sole manufacturer in India for SAMs torpedoes ATGMs. It is also the sole supplier of SAMs and ATGMs to the Indian armed forces. It supplied CMDS for Mirage to HAL and BEL for integration to aircraft and other trials. It recently bagged order from The Ministry of Defence for the supply of indigenously built beyond visual range air-to-air ASTRA MK-I missiles and associated equipment for the Indian Air Force, anti-tank guided missiles MILAN 2T for Ministry of Defense, supply Akash Missiles for Indian Air Force (IAF). It also bagged an export order worth USD 14.33 Million for export of Light Weight Torpedoes to a friendly country.

5. Cochin Shipyard Ltd.

Cochin Shipyard Ltd (CSL) is mainly engaged in the construction of vessels and repairs and refits of all types of vessels including upgradation of ships periodical lay-up repairs and life extension of ships. The company has built and repaired some of the largest ships in India. Recently it won a contract worth Rs 10,000-crore from by the Indian Navy, to build Next Generation Missile Vessels. INS Vikrant built with state-of-the-art automation features and is the largest ship ever built-in maritime history of India is jointly built by Warship Design Bureau (WDB) and built by Cochin Shipyard Limited.

6. Paras defense and Space Technologies Ltd.  

Paras Defense is involved in Technologies for Rocket & Missiles, Space & Space Research, Naval Systems, Land & Armored Vehicles, Electronic Warfare & Surveillance, Electromagnetic Shielding to name a few. The company recently supplied border surveillance system which will provide all weather surveillance for day and night monitoring of the border areas, it will consist of Radar, EO sensors etc., mounted on Pan Tilt platforms to DRDO.

7. L&T

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. Recently, L&T Defence signed contract with MoD for supply of Pinaka Launchers, Battery Command Posts and associated Engineering Support Package. L&T Defence is also engaged with DRDO for future developments on this artillery system. The company has entered into contract for supply of 100 units of 155mm/52 calibre tracked self-propelled gun systems to Indian Army. HAL-L&T recently wins over Rs 824-crore contract for making 5 polar space launch vehicles for ISRO.

8. BEML

BEML is involved in sectors like defence, rail, power, mining and infrastructure. It received a prestigious order from MoD for supply for 330 High Mobility Vehicles, for Pinaka Project and supply of high-mobility vehicles which will enable armored fighting vehicles, troops, ammunition and stores to be moved to far-flung, difficult terrains in operational areas. Company expects to get additional orders valued at about Rs 3,000 crore by this financial year-end.

Financial Performances:

Considering the company’s growth potentials along with bag full of orders and Government’s aggressive steps in Defense field, the stocks are recommended for mid-term to long term period.

- HET ZAVERI

- info@smartinvestment.in

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