Investors seeking strong performance in the defence sector should focus on stocks with high profitability. ROE (Return on Equity) measures net profit relative to shareholder equity, indicating efficiency in generating returns.
ROCE (Return on Capital Employed) shows how well a company generates profit from its total capital. Defence stocks with ROE and ROCE above 20% demonstrate robust financial health and operational efficiency, making them attractive options for long-term investment consideration.
Hindustan Aeronautics
On October 3, 2025, Hindustan Aeronautics Ltd opened at ₹4,797.95, down 0.11% from its previous close of ₹4,803.15. The stock reached a high of ₹4,875.15 (1.50%) and a low of ₹4,791.65. By 4:00 PM, it traded at ₹4,870.90, a 1.41% increase, with a market cap of ₹3,25,753.61 crore.
Hindustan Aeronautics Ltd records strong financials with ROE 26.1% and ROCE 33.9%.
Hindustan Aeronautics Ltd (NSE: HAL) is engaged in manufacturing and repairing aircraft and helicopters, providing maintenance services, and supporting India’s aerospace and defence sector with advanced aviation solutions and technologies.
Bharat Electronics
On October 3, 2025, Bharat Electronics Ltd opened at ₹406.50, down 0.01% from its previous close of ₹406.55. The stock reached a high of ₹413.85 (1.80%) and a low of ₹405.10. By 4:00 PM, it traded at ₹412.60, a 1.49% increase, with a market cap of ₹3,01,601.47 crore.
Bharat Electronics Ltd posts robust financials with ROE 29.2% and ROCE 38.9%.
Bharat Electronics Ltd (NSE: BEL), established in 1954, manufactures advanced electronic equipment and systems for defence, including radar, communication, and electronic warfare, while expanding into international defence and select civilian markets.
Garden Reach Shipbuilders
On October 3, 2025, Garden Reach Shipbuilders & Engineers Ltd opened at ₹2,645.30, up 0.01% from its previous close of ₹2,645.10. The stock reached a high of ₹2,735.15 (3.40%) and a low of ₹2,633.10. By 4:00 PM, it traded at ₹2,725.05, a 3.02% increase, with a market cap of ₹31,215.99 crore.
Garden Reach Shipbuilders & Engineers Ltd demonstrates strong financials with ROE 27.6% and ROCE 36.6%.
Garden Reach Shipbuilders & Engineers Ltd (NSE: GRSE) is a leading Indian shipbuilding company, supplying warships to the Navy and Coast Guard, pioneering exports, and delivering over 100 warships under Ministry of Defence oversight.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
FAQs
Q: Which 3 defence stocks have ROE and ROCE above 20% to watch?
A: Hindustan Aeronautics Ltd, Bharat Electronics Ltd, and Garden Reach Shipbuilders & Engineers Ltd show ROE and ROCE above 20%.
Q: What does ROE indicate for these defence stocks?
A: ROE measures profitability relative to shareholder equity, showing how efficiently the company generates returns on invested capital.
Q: Why is ROCE important for investors in defence stocks?
A: ROCE indicates how effectively a company generates profit from total capital, reflecting operational efficiency and financial strength.
