Best Defence Stocks in India 2022

The Defence industry of India is a strategically important sector in India. India has one of the world’s largest military forces with a strength of over 14.4 lakh (1.44 million) active personnel. India has a new defence procurement, acquisition and manufacturing policy to reduce imports and enhance domestic manufacturing. The total budget sanctioned for the Indian military for the financial year 2021 is ₹4.78 lakh crore (US$63 billion). India’s defence manufacturing sector has been witnessing a CAGR of 3.9% between 2016 and 2020. The Indian government has set the defence production target at US$ 25.00 billion by 2025 (including US$ 5 billion from exports by 2025). Defence exports in India were estimated to be at US$ 1.29 billion in 2019-20.

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Cochin Shipyard

Cochin Shipyard was incorporated in the year 1972 as a fully owned Government of India company. In the last three decades the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. One of the most rewarding contribution is its Marine Engineering Training Institute (METI), located in the Vigyana Sagar premises at Girinagar, Cochin, Kerala. Cochin Shipyard’s recent success in securing export orders have been achieved through consistent improvement in productivity and also aggressive marketing undertaken in the last few years . The performance and increase in aggregate productivity of CSL are clearly visible in the financial statements. The CSL signed an agreement with the Dredging Corporation of India (DCI) to build India’s largest dredger in collaboration with IHC Holland. The contract for the construction of the 12,000 m3 Trailing Suction Hopper Dredger is a culmination of the efforts of Ministry of Ports, Shipping and Waterways to bring in ‘best-in-class’ global technology into India under the Aatmanirbhar Bharat initiative.

Paras Defence and Space Technologies Limited

Paras Defence and Space Technologies Limited is an India-based company, involved in design, development, manufacturing, testing and commissioning of products, systems and solutions for defense and space applications. Paras offers a wide range of Products & Solutions for Defence & Space Applications. With focus on Defence & Space Sector we have five verticals of our business, namely Defence & Space Optics, Defence Electronics. With Space sector opening up to private players and government upping its ante to strengthen the defence force, it is an exciting time for an investor in India.

Bharat Electronics Limited (BEL)

Bharat Electronics Limited (BEL) is an Indian Government-owned aerospace and defence electronics company. It primarily manufactures advanced electronic products for ground and aerospace applications. BEL is one of nine PSUs under the Ministry of Defence of India. Recently BEL has set up a Customer Co-ordination Cell. The customers of BEL comprise members of the Army, Navy, Air Force, paramilitary, Coast Guard (India, Seychelles, Maldives, Sri Lanka), Police, Doordarshan, All India Radio, Department of Telecommunications and consumers of professional electronic components are allowed to register their complaints with the Customer Co-ordination Cell by phone, fax or the Internet. It has been granted Navratna status by the Government of India. BEL is targeting a healthy growth of 12-15% during 2019-20. Segments ike Radar and Missile Systems, Communication and Network Centric systems, Tank Electronics, Gun upgrades, Electro Optic systems and Electronic Warfare & Avionics systems will continue to drive the Company”s growth in the coming years.

Bharat Forge Limited

Bharat Forge Limited is an Indian multinational company involved in forging, automotive, energy, construction and mining, railways, marine, aerospace and defence industries. The company was founded by Nilkanthrao A. Kalyani on 19 June 1961. Bharat forge limited has Recorded in the corresponding period of the previous year Five top-performing mutual fund schemes delivered up to 47 per cent returns in the last one year against a 16 per cent rise in the BSE Sensex, data compiled from publicly available figures with Value Research suggests. Under the e-mobility vertical, the company aims to achieve 5-6 per cent market share by 2025 in two-wheeler, three-wheeler and commercial vehicle (buses and trucks) segments.

Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited (HAL) is an Indian state-owned aerospace and defence company, headquartered in Bengaluru, India. Established on 23 December 1940, HAL is one of the oldest and largest aerospace and defence manufacturers in the world today. The “HAL” stock price can rise up to 3441.780 INR. With a 5-year investment. State-run aerospace behemoth Hindustan Aeronautics Ltd (HAL) will manufacture four light utility helicopters (LUHs) under limited series production by 2022-23, according to the government. Minister of State for Defence Ajay Bhatt, replying to a question in Rajya Sabha on Monday, also said that another eight LUHs will be built by 2023-24.

Bharat Dynamics Limited (BDL)

Bharat Dynamics Limited (BDL) is one of India’s manufacturers of ammunitions and missile systems. It was founded in 1970 in Hyderabad, Telangana, India. BDL was established to be a manufacturing base for guided weapon systems and begun with a pool of engineers drawn from Indian Ordnance Factories, DRDO and aerospace industries, It began by producing a first generation anti-tank guided missile – the French SS11B1. Bharat Dynamics Limited can be a profitable investment option. Bharat Dynamics (BDL) has launched two new products during Aero India- 2021, the Dishani and Garudastra. Garudastra is an advanced anti submarine self guided state of the art homing torpedo being designed and developed by NSTL, DRDO with BDL as the development partner.