Top Defence Stocks in India

The defence sector includes companies that manufacture, maintain, and supply military facilities, equipment, and materials. 

In recent years, India has been focusing on “Atmanirbhar Bharat” by manufacturing its own defence equipment and reducing defence imports, making it a top choice for many investors. 

In this article, we will go through the top defence stocks in India, as well as some key details about each company. 

What are Defence Stocks?

Defence stocks are shares of companies that produce, distribute, or finance projects related to the army, navy, airforce, or other parts of India’s defence sector. 

These companies provide support to various subsets of the defence sector to carry out their role of safeguarding the nation. 

As a result, shares of these companies are known to be always in demand. 

Moreover, India is a juggernaut when it comes to defence, boasting the 4th largest military in the world among several other accolades. 

Thus, defence companies play an important role in nation-building, and we’ve compiled some of the leading defence shares next. 

Top Defence Stocks in India

Let’s have a look at the top defence stocks in India that you can invest in 2023:

1. Bharat Electronics Limited (BEL)

Bharat Electronics Ltd is a government-owned defence and aerospace firm. 

It is majorly engaged in manufacturing advanced electronic products for ground and aerospace applications. 

BEL is also one of the nine PSUs which come under India’s Ministry of Defence. The company was incorporated in 1954 in Bengaluru. 

Some of the significant achievements of the company are the design and development of cyclone warning radar for the Indian Meteorological Department and multiple target field artillery radar for the army.

  • BEL Share Price: ₹138+
  • Market Cap: ₹1047.13 billion

2. Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited manufactures combat aircraft and aircraft parts. HAL is owned by the Indian government and has its headquarters in Bengaluru. 

The company has been operating in this industry for 80+ years and was listed on the market in March 2018.

  • HAL Share Price: ₹4082+
  • Market Cap: ₹1372.88 billion

3. Bharat Dynamics Limited (BDL)

Bharat Dynamics Limited is a small-cap company that is involved in designing and manufacturing underwater guided weapon systems. It is now focused on the production of guns, ammo, and panels.

BDL was founded on 16th July 1970 in Hyderabad. The company was listed on the NSE and BSE in March 2018. BDL has started developing products for the armed forces with the use of AI technology.

  • BDL Share Price: ₹1173+
  • Market Cap: ₹218.67billion

4. Larsen & Toubro (L&T)

With more than  30 years of history in this industry, Larsen and Toubro provide solutions related to engineering, information and technology, financial services, construction, manufacturing, etc. 

The company is engaged in developing a variety of defence equipment like land-based weapon systems, combat engineering systems, C4I missile systems, and more.

L&T defence is a part of L&T which is engaged in the manufacturing and supply of defence equipment systems.

  • L&T Share Price: ₹2894+
  • Market Cap: ₹4079.97 billion

5. Ashok Leyland

Ashok Leyland Defence Systems is into manufacturing automobiles. The company is engaged in designing and manufacturing vehicles for the Indian armed forces such as for the Navy, Air Force, Para-military forces, firefighting, gun mounting, etc.  

Ashok Leyland is ranked as the world’s largest producer of medium-duty defence vehicles. The company came into existence in March 2008.

  • Ashok Leyland Share Price: ₹184+
  • Market Cap: ₹538.93 billion

6. BEML Limited

BEML Limited is an Indian PSU having its headquarters in Bengaluru. The company is engaged in manufacturing various heavy equipment that are used in earth moving, railways, transportation, and mining. 

The company’s business is divided into 3 main categories i.e. defence, metro & rail, and construction & mining.

BEML Limited was founded on 11th May 1964. The company has its manufacturing plants at Kolar Gold Fields, Bengaluru, Mysore, and Palakkad.

  • BEML Ltd Share Price: ₹2604+
  • Market Cap: ₹107.97 billion

7. Paras Defence and Space Technologies Limited

Paras Defence and Space Tech is a company that operates in the defence and space technology sector, producing hardware such as drones for the nation’s defence efforts.  

It is headquartered in Navi Mumbai (Maharashtra) and specializes in Heavy Engineering, Defence and Space Optics, Defence Electronics, and other solutions such as Optical Submarine Periscopes. 

  • Paras Defence and Space Tech Ltd Share Price: ₹711.35
  • Market Cap: ₹2,755.94 Cr

Factors to Consider When Choosing Defence Stocks

There are certain factors that you should consider while selecting defence stocks. They are as follows.

1. Geopolitical Risks

defence stocks are prone to geopolitical risks. Investors should consider this before investing. Border tensions, conflicts between countries, government policy changes, etc. can have a huge impact on defence stocks.

2. Volatility

defence stocks can be volatile. They can go high when economic uncertainty arises; they are cyclical stocks in nature. Keep this in mind while investing in them.

3. Fundamentals

Usually in India, defence companies are backed by the government. As the government is involved, defence stocks can be considered evergreen stocks for investing. 

However, it ensures that apart from this, the rest of the fundamentals such as profit margin, operating revenue, standard financial ratios, etc. are favorable. 


The Indian defence industry plays an important role in the nation’s security as well as the economy. This importance may translate into each important company’s finances. 

Moreover, there is significant potential in defence stocks due to government reliance and backing (in some cases). This is one of the main reasons why investors search for the best defence stocks in India.  

Whether or not you should invest in these stocks depends on your risk appetite, financial goals, and other factors. Thus, it is best to do thorough analysis and research before investing in any stock. 

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Disclaimer: Our blogs are not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing.