The Indian government has been increasing defence spending, potentially leading to increased demand for defence products and services, benefiting defence companies.
8,601 crores, the shares of Mishra Dhatu Nigam started Friday’s trading session on a flatter note at Rs.
During the trading session, the shares hit a low of Rs.455.95, losing around 1 percent and closed the day at Rs.
The shares have a high Piotroski score of 7’.
During the trading session, the shares hit a high of Rs.
The defence industry in India is a significant contributor to the nation’s economy and stock market. The Indian government has been increasing defence spending, potentially leading to increased demand for defence products and services, benefiting defence companies.
Moreover, the Indian government initiatives like “Make in India” have promoted indigenous defence manufacturing and reduced reliance on imports. This has led to significant investments and partnerships in the sector, creating opportunities for investors.
Listed below are such defence stocks with high Piotroski scores of up to 8:
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With a market capitalization of Rs. 8,601 crores, the shares of Mishra Dhatu Nigam started Friday’s trading session on a flatter note at Rs. 462.75 compared to its previous close of Rs. 460.25.
During the trading session, the shares hit a low of Rs.455.95, losing around 1 percent and closed the day at Rs. 459 apiece. The shares have a high Piotroski score of 7’.
Coming onto the company’s financial statements, the revenue increased by 61 percent from Rs. 252 crores during the December quarter to Rs. 406 crores during the March quarter. In addition, the net profits magnified by 254 percent from Rs. 13 crores to Rs. 46 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 6.95 percent and a return on capital employed (RoCE) of 7.77 percent for the period spanning FY23-24. Further, the net profit margin stood at 8.50 percent during the same timeframe.
The company was set up by the Govt. to achieve self-reliance in the production and supply of various super alloys, special steels, and soft magnetic alloys to Defence and other Strategic Sectors such as Energy, Space, and Aeronautical applications.
With a market capitalization of Rs. 4,188 crores, the shares of Avantel started Friday’s trading session on a flatter note at Rs. 168 compared to its previous close of Rs. 167.05.
During the trading session, the shares hit a high of Rs. 175, gaining around 4 percent and closed the day at RS. 172.90 apiece. ‘The shares have a high Piotroski score of 8’.
Coming onto the company’s financial performance, the revenue decreased by around 30 percent from Rs. 59.33 crores during Q3FY24 to Rs. 41.76 crores in Q4FY24. On the other hand, the net profits declined by 26 percent from Rs. 16.32 crores to Rs. 12.15 crores during the same period.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 32.02 percent and a return on capital employed (RoCE) of 44.35 percent for the period spanning FY23-24. Moreover, during the same timeframe, the net profit margin stood at 23.42 percent.
Avantel specializes in providing strategic solutions to the Indian Defence Services and related establishments. It has developed and manufactured various radio components and unique products such as satellite communications, HF communications, electronic warfare, and radar systems.
With a market capitalization of Rs. 1,389 crores, the shares of Sika Interplant Systems started Friday’s trading session on a flatter note at Rs. 3,330.10.
During the trading session, the shares hit a low of Rs. 3,200.05, losing around 3 percent and closed the day at Rs. 3,268 apiece. ‘The shares have a high Piotroski score of 8’.
Looking at the company’s financial performance, the revenue increased by 43 percent from Rs. 26 crores during the December quarter to Rs. 37.16 crores in the March quarter. In addition, the net profits zoomed by 28 percent from Rs. 4.73 crores to Rs. 6.05 crores during the same period.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 10.29 percent during FY 22-23 to 18.77 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 14.03 percent to 22.85 percent during the same timeframe. Furthermore, the net profit margin increased from 14.64 percent during FY22-23 to 18.25 percent during FY23-24.
Sika Interplant Systems Ltd serves the Aerospace and Defence (A&D) sector, with a focus on engineering, manufacturing solutions, projects and systems integration, MRO (maintenance, repair, and overhaul), and distribution.
The company boasts a robust customer base, including prominent names like HAL, Tata Power, and Larsen & Toubro Ltd, among others.
Written By Vaibhav Patil
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