India's Top 5 Defence Sector Stocks to Invest in 2022

Defence Sector stocks is the most demanding after the BJP government as defence sector is focusing on Make in India campaign. PM Modi is promoting the slogan of “For Indian, By Indian”.

Defence companies has shown immense potential in developing their own warship, fighters and weapons. Now catering some other developing countries like Indonesia, Brazil including US as well.

Today you get to about the to Top 5 Defence Sector Stocks which you can select for your investment portfolio for a long term capital gain and wealth creation.

Bharat Dynamics (BDL), is a Government of India Enterprise. It is engaged in the manufacturing of guided missiles and allied defence equipments.

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Company is almost debt free and is expected to give good quarter. Company has been maintaining a healthy dividend payout of 37.6%. The company has delivered a poor sales growth of -10.4% over past five years. – Symbol : BDL – Market Cap : ₹ 14,769 Cr. – Current Price : ₹ 805 – High / Low : ₹ 905 / 368 – Debt : ₹ 6.53 Cr.

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BEL was established in 1954 in association with CSF, France (now, Thales), to meet the specialized electronic equipment requirements of the Indian Defence Services.

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Company has been maintaining a healthy dividend payout of 43.2% and Promoter holding has decreased over last 3 years: -7.69% – Symbol : BEL – Market Cap : ₹ 71,612 Cr. – Current Price : ₹ 294 – High / Low : ₹ 301 / 174 – Debt : ₹ 6.53 Cr. – ₹ 52.7 Cr.

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Hindustan Aeronautics is engaged in the business of Manufacture of Aircraft and Helicopters and Repair, Maintenance of Aircraft and Helicopters.

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Company has a good return on equity (ROE) track record: 3 Years ROE 25.0%. and has been maintaining a healthy dividend payout of 32.1% – Symbol : HAL – Market Cap : ₹ 73,972 Cr. – Current Price : ₹ 2,217 – High / Low : ₹ 2,350 / 1,116 – Debt : ₹ 48.6 Cr.

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Astra Microwave Products is engaged in the business of design, development and manufacture of sub-systems for Radio Frequency and microwave systems used in defense, space, meteorology

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Company has a low return on equity of 6.62% for last 3 years. Company's cost of borrowing seems high – Symbol : ASTRAMICRO – Market Cap : ₹ 2,854 Cr. – Current Price : ₹ 330 – High / Low : ₹ 332 / 150 – Debt : ₹ 59.8 Cr

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Mazagon Dock Shipbuilders Ltd is primarily engaged in building & repairing of ships, submarines and various types of vessels and related engineering products for various domestic and international clients. It was incorporated as a Pvt. company in 1934 and was taken over by the Government of India in 1960.

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Contingent liabilities of Rs.2,302 Cr. Earnings include an other income of Rs.482 Cr. – Symbol : MAZDOCK – Market Cap : ₹ 6,314 Cr. – Current Price : ₹ 313 – High / Low : ₹ 342 / 222 – Debt : 11.2 Cr

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