If you’re interested in investing in the share market, you may be looking for some top-performing stocks to consider. One sector that has seen steady growth in recent years is defence, with many defence companies enjoying favourable market conditions. Here are five growth defence stocks in the share market that investors should consider.
- Hindustan Aeronautics
Hindustan Aeronautics is a leading defence company in India that manufactures fighter jets, helicopters, and other aircraft. Over the last three years, the company has seen a profit growth of 29.43%, an ROE of 24.85%, and an ROCE of 27.04%. While these figures are impressive, it’s worth noting that the company has poor revenue growth of 7.16% and contingent liabilities of 12,901.14 Cr.
- Bharat Electronics
Bharat Electronics is another top defence company in India that produces electronic products for defence and civilian use. Over the last three years, the company has shown an ROCE of 27.52%, is debt-free, and has a healthy interest coverage ratio of 382.84. However, it has a profit growth of only 6.82% and poor revenue growth of 8.21%.
- Cochin Shipyard
Cochin Shipyard is a leading shipbuilding and ship repair company in India. The company has an ROCE of 22.18%, is debt-free, and has an effective average operating margin of 21.14% over the last five years. However, in the last three years, the company has only seen a profit growth of 6.82% and revenue growth of 2.46%.
- Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders is another leading shipbuilding company in India. The company has an ROCE of 25.75%, a healthy interest coverage ratio of 52.72%, and a PEG ratio of 0.72. However, in the last three years, the company has only seen a profit growth of 4.27% and revenue growth of 7.51%.
- Bharat Dynamics
Bharat Dynamics is a leading missile systems company in India. The company has an ROCE of 23.07%, a healthy interest coverage ratio of 150.48%, and a PEG ratio of 0.38. However, over the last three years, the company has only seen a profit growth of 5.76% and revenue growth of -2.81%.
Investors looking to invest in these companies should be mindful of their valuations and exercise caution during market corrections. While these defence stocks have shown impressive growth in recent years, it’s important to consider their limitations and potential risks.
Conclusion
Defence stocks have been a strong performer in the share market in recent years, and these five companies have shown impressive growth in various areas. While each company has its limitations, they present excellent opportunities for investors who are willing to exercise caution and make informed investment decisions.
If you’re interested in investing in the share market, be sure to conduct thorough research and analysis before making any investment decisions. It’s essential to consider a company’s financial performance, management, and potential risks before investing your hard-earned money.