Defence stocks have experienced a relatively quiet quarter at the bourses after an impressive run over the past year and a half. The recent pressure on shares of these companies has been largely attributed to their sky-high valuations, which have led to a more cautious approach from investors.

For those considering investments in defence stocks, a key metric to evaluate is the order book value. The order book reflects the total value of contracts and projects that a company has secured but not yet completed, serving as a critical indicator of future revenue potential. A strong and growing order book often signals robust demand and a healthy pipeline of projects, providing insights into a company’s long-term performance and growth prospects in the defence sector.

Top Defence Companies by Order Book Value

1. Hindustan Aeronautics

Order Book Value: ₹94,000 crore

Hindustan Aeronautics Ltd (HAL) tops the list with an extraordinary order book of ₹94,000 crore. HAL is a state-owned aerospace and defence company headquartered in Bangalore. The value of the order is as of March end.

2. Bharat Electronics

Order Book Value: ₹76,705 crore

Bharat Electronics Ltd (BEL), another government-owned entity, boasts an order book of over ₹76,000 crore as of June end. BEL is a leader in defence electronics, providing advanced electronic products and systems such as radar, communications and electronic warfare equipment.

3. Mazagon Dock Shipbuilders

Order Book Value: ₹36,839 crore

Mazagon Dock Shipbuilders Ltd (MDL) holds an order book valued at ₹36,839 crore as of June 30. This is a slip from the ₹38,561 crore order book reported at the end of March 2024. Based in Mumbai, MDL is a premier shipbuilding yard in India, constructing warships and submarines for the Indian Navy and offshore platforms for oil drilling.

4. Garden Reach Shipbuilders & Engineers

Order Book Value: ₹₹25,231.29 crore

Garden Reach Shipbuilders & Engineers Ltd (GRSE) has an impressive order book of ₹₹25,231.29 crore as of June 30, 2024. This is an 11% jump from the ₹22,652.68 crore order book reported at the end of March 2024. Located in Kolkata, GRSE is renowned for building advanced warships and various auxiliary vessels for the Indian Navy and Coast Guard.

5. Cochin Shipyard

Order Book Value: ₹22,000 crore

Cochin Shipyard Ltd (CSL), with an order book of ₹22,000 crore (as of March 2024), is a leading player in shipbuilding and ship repair. Based in Kochi, CSL constructs both commercial and defence vessels, including India's first indigenous aircraft carrier, INS Vikrant.

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6. Bharat Dynamics

Order Book Value: ₹19,500 crore

Bharat Dynamics Ltd (BDL) has a strong order book of ₹19,500 crore as of March end. Based in Hyderabad, the state-owned company is a key manufacturer of missile systems and allied defence equipment.

7. Solar Industries India

Order Book Value: ₹4,750 crore

Solar Industries India reported an order book of ₹4,750 crore as of June 30. Out of this, the defence order book is around ₹2,500 crore. Headquartered in Nagpur, Solar Industries supplies a variety of explosives for defence and commercial use.

8. Astra Microwave Products

Order Book Value: ₹2,365 crore

Astra Microwave Products Ltd, with an order book of ₹2,365 crore (as of June end), is a leading provider of microwave products used in radar, communication, and electronic warfare systems. Order book comprises 88% of the domestic orders and 12% of exports.

Based in Hyderabad, the company supports both defence and civilian applications, contributing significantly to India's defence electronics sector.

9. Mishra Dhatu Nigam

Order Book Value: ₹1,740 crore

Mishra Dhatu Nigam Ltd, holding an order book of ₹1,740 crore (as of June 2024), focuses on the manufacturing of specialised metals and alloys essential for aerospace, defence, and other high-tech industries. 80% of the orders are from the defence sector.

10. Zen Technologies Ltd

Order Book Value: ₹1,400 crore

Zen Technologies Ltd, with an order book of ₹1,400 crore as of March end, specialises in simulation technology for defence training. The company, based in Hyderabad, provides advanced training solutions to various defence forces, enhancing operational readiness and effectiveness.

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