3 Radar and Defence Electronics, Explosives and Precision Components Stocks With a Strong Future Roadmap: Bharat Electronics, Solar Industries India and MTAR Technologies
- October 22, 2026
- Posted by: Chaitanya Auti
- Category: Best Stocks
Bharat Electronics, Solar Industries India and MTAR Technologies: ROE of 11.4% to 26.7% and FY22 to FY26 revenue CAGR of 15.9% to 28.4%. Prices as of 21 Oct 2026.
Quick Answer
The three defence and strategic manufacturing stocks to watch are Bharat Electronics, Solar Industries India and MTAR Technologies. Their return on equity ranges from 11.4% to 26.7%, and their revenue compound annual growth from FY22 to FY26 ranges from 15.9% to 28.4%. Solar Industries India has the highest return on equity at 26.7%, while MTAR Technologies has the fastest revenue growth at 28.4% a year. Prices are based on the 21 October 2026 close, and this article is educational, not investment advice.
Defence and strategic manufacturing stocks let investors follow companies that supply armed forces and strategic programmes. Bharat Electronics, Solar Industries India and MTAR Technologies cover radars and defence electronics, explosives and ammunition, and precision components for space and nuclear programmes.
This list covers three defence and strategic manufacturing stocks with complete current figures: Bharat Electronics, Solar Industries India and MTAR Technologies. Every figure comes from the latest reported financials and the 21 October 2026 market close. Companies without complete current figures were left out.
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What Are Defence and Strategic Manufacturing Stocks?
Defence and strategic manufacturing stocks are listed companies that make defence electronics, explosives and critical components for defence, space and nuclear customers. Their earnings depend on order books, execution speed and export demand.
Defence and Strategic Manufacturing Stocks at a Glance
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE (%) | D/E |
|---|---|---|---|---|---|---|
| Bharat Electronics | 371.2 | 275,177 | 44.8 | 48.1 | 25.3 | 0.00 |
| Solar Industries India | 19,259 | 178,992 | 87.3 | 48.1 | 26.7 | 0.24 |
| MTAR Technologies | 6,932 | 22,064 | 165.4 | 48.1 | 11.4 | 0.46 |
On valuation, Bharat Electronics trades at a P/E below the industry P/E, while Solar Industries India and MTAR Technologies trade above it, which reflects the growth the market already expects. Readers comparing defence and strategic manufacturing stocks should look at return on equity and debt together, since a high return earned with low debt is easier to sustain.
Why Do Defence and Strategic Manufacturing Stocks Have a Strong Roadmap in India?
Defence and strategic manufacturing stocks have a strong roadmap in India because local production policy and higher defence and space budgets are building long and large order pipelines.
- Local production push. Government policy favours Indian-made equipment.
- Export orders. Indian makers are winning supply contracts from overseas buyers.
- Qualification barriers. Strategic parts take years of customer approval.
Why Bharat Electronics Features Among These Defence and Strategic Manufacturing Stocks
Among the defence and strategic manufacturing stocks on this list, Bharat Electronics is a Navratna public sector company that designs and makes radars, communication systems, electronic warfare suites, naval systems, electro-optics and avionics for the Indian armed forces, with a growing civil and export business.
The company has a return on equity of 25.3%, a debt to equity ratio of 0.00 and a market capitalisation of Rs 275,177 crore. The stock trades at a P/E of 44.8, below the industry P/E of 48.1.
Revenue rose from Rs 15,600 crore in FY22 to Rs 28,176 crore in FY26, a compound annual growth rate of 15.9%. Net profit grew from Rs 2,354 crore in FY22 to Rs 6,023 crore in FY26, which works out to a compound annual growth rate of 26.5%. In the June 2026 quarter, revenue grew 24.2% year on year to Rs 5,717 crore, while net profit rose 8.7% to Rs 1,044 crore.
Roadmap: The company works with a large order book from the defence ministry and continues to win new programmes in air defence, naval combat systems and communication. Indigenisation policies favour domestic suppliers, and the company is also widening into homeland security, railways and electronic manufacturing services.
What to watch: Watch the size of the order book, the pace of order execution and the order inflow reported with each quarterly result.
Why Solar Industries India Features Among These Defence and Strategic Manufacturing Stocks
Among the radar and electronics shares on this list, Solar Industries India is the country’s largest maker of commercial explosives and also produces defence products such as ammunition, rockets, propellants and warheads for domestic and export customers.
Revenue rose from Rs 3,967 crore in FY22 to Rs 9,966 crore in FY26, a compound annual growth rate of 25.9%. Net profit grew from Rs 455 crore in FY22 to Rs 1,737 crore in FY26, which works out to a compound annual growth rate of 39.7%.
The company has a return on equity of 26.7%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 178,992 crore. The stock trades at a P/E of 87.3, above the industry P/E of 48.1.
Roadmap: The company serves mining and infrastructure customers with bulk and packaged explosives and has grown its defence business with large export orders. Capacity additions in defence manufacturing and a global presence widen its reach.
What to watch: Monitor the defence order book and the pace of new capacity in ammunition and rocket systems.
Why MTAR Technologies Features Among These Defence and Strategic Manufacturing Stocks
Among the three companies on this list, MTAR Technologies is a Hyderabad-based maker of precision engineered components and assemblies for clean energy, nuclear, space and defence customers.
Revenue rose from Rs 331 crore in FY22 to Rs 899 crore in FY26, a compound annual growth rate of 28.4%. Net profit grew from Rs 60.9 crore in FY22 to Rs 94.0 crore in FY26, which works out to a compound annual growth rate of 11.5%.
The company has a return on equity of 11.4%, a debt to equity ratio of 0.46 and a market capitalisation of Rs 22,064 crore. The stock trades at a P/E of 165.4, above the industry P/E of 48.1.
Roadmap: The company supplies critical parts for fuel cell systems, space launch vehicles and nuclear power programmes, areas where qualification takes years and customer relationships are long-lasting. Added capacity and a growing order book support future revenue.
What to watch: Check order book execution in clean energy and the ramp-up of newly added capacity.
Bharat Electronics vs Solar Industries India vs MTAR Technologies on Key Financials
The table below sets the three defence and strategic manufacturing stocks side by side on revenue, profit and margin, using reported figures.
| Company | FY22 Revenue (Rs Cr) | FY26 Revenue (Rs Cr) | Revenue CAGR (FY22-FY26) | FY26 Net Profit (Rs Cr) | FY26 Net Margin |
|---|---|---|---|---|---|
| Bharat Electronics | 15,600 | 28,176 | 15.9% | 6,023 | 21.4% |
| Solar Industries India | 3,967 | 9,966 | 25.9% | 1,737 | 17.4% |
| MTAR Technologies | 331 | 899 | 28.4% | 94.0 | 10.5% |
Solar Industries India posts the highest return on equity in this group at 26.7%. Bharat Electronics has the largest FY26 revenue at Rs 28,176 crore, and MTAR Technologies shows the fastest revenue growth with a 28.4% compound annual rate. A useful habit with defence and strategic manufacturing stocks is to check each new quarterly result against the capacity plans the company described earlier.
Key Risks to Check Before Investing in Defence and Strategic Manufacturing Stocks
Every theme carries risks that deserve a check before any decision. For these defence and strategic manufacturing stocks, the main points are: Long-term radar and electronics shares holders usually track revenue growth, margins and cash flow side by side rather than relying on a single ratio.
- Order timing. Defence contracts can be lumpy and may shift between quarters.
- Execution demands. Large programmes need strict delivery and quality schedules.
- Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them.
Treat this list as a starting point for research and not as a recommendation. Read the latest results presentation, check the management commentary on order books or capacity plans, and compare each company with its peers before you decide anything.
Use the Univest Stock Screener to filter defence and strategic manufacturing stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.
Final Thoughts on Defence and Strategic Manufacturing Stocks
Defence and strategic manufacturing stocks reward investors who follow order books, deliveries and export wins. Bharat Electronics, Solar Industries India and MTAR Technologies each play a different part of the supply chain. Based on the 21 October 2026 close, Bharat Electronics trades at Rs 371.2, Solar Industries India at Rs 19,259 and MTAR Technologies at Rs 6,932.
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Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
What are defence and strategic manufacturing stocks?
Ans. Defence and strategic manufacturing stocks are listed companies that make defence electronics, explosives and critical components for defence, space and nuclear customers. Their earnings depend on order books, execution speed and export demand. This list looks at three of them, Bharat Electronics, Solar Industries India and MTAR Technologies, using reported FY22 to FY26 financials and the 21 October 2026 closing prices.
Which defence and strategic manufacturing stocks are covered in this list?
Ans. This list covers Bharat Electronics, Solar Industries India and MTAR Technologies. Based on the 21 October 2026 close, Bharat Electronics traded at Rs 371.2, Solar Industries India at Rs 19,259 and MTAR Technologies at Rs 6,932. Their return on equity ranges from 11.4% to 26.7%, and their revenue compound annual growth from FY22 to FY26 ranges from 15.9% to 28.4%.
Why do defence and strategic manufacturing stocks have a strong future roadmap in India?
Ans. Defence and strategic manufacturing stocks have a strong roadmap in India because local production policy and higher defence and space budgets are building long and large order pipelines. The main drivers are as follows. Local production push. Government policy favours Indian-made equipment. Export orders. Indian makers are winning supply contracts from overseas buyers. Qualification barriers. Strategic parts take years of customer approval. Together these factors give the companies on this list a visible path for growth over the coming years.
How has Bharat Electronics performed financially?
Ans. Revenue rose from Rs 15,600 crore in FY22 to Rs 28,176 crore in FY26, a compound annual growth rate of 15.9%. Net profit grew from Rs 2,354 crore in FY22 to Rs 6,023 crore in FY26, which works out to a compound annual growth rate of 26.5%. In the June 2026 quarter, revenue grew 24.2% year on year to Rs 5,717 crore, while net profit rose 8.7% to Rs 1,044 crore. The company has a return on equity of 25.3%, a debt to equity ratio of 0.00 and a market capitalisation of Rs 275,177 crore. The stock trades at a P/E of 44.8, below the industry P/E of 48.1. Looking ahead, the company works with a large order book from the defence ministry and continues to win new programmes in air defence, naval combat systems and communication. Indigenisation policies favour domestic suppliers, and the company is also widening into homeland security, railways and electronic manufacturing services.
How has Solar Industries India performed financially?
Ans. Revenue rose from Rs 3,967 crore in FY22 to Rs 9,966 crore in FY26, a compound annual growth rate of 25.9%. Net profit grew from Rs 455 crore in FY22 to Rs 1,737 crore in FY26, which works out to a compound annual growth rate of 39.7%. The company has a return on equity of 26.7%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 178,992 crore. The stock trades at a P/E of 87.3, above the industry P/E of 48.1. Looking ahead, the company serves mining and infrastructure customers with bulk and packaged explosives and has grown its defence business with large export orders. Capacity additions in defence manufacturing and a global presence widen its reach.
How has MTAR Technologies performed financially?
Ans. Revenue rose from Rs 331 crore in FY22 to Rs 899 crore in FY26, a compound annual growth rate of 28.4%. Net profit grew from Rs 60.9 crore in FY22 to Rs 94.0 crore in FY26, which works out to a compound annual growth rate of 11.5%. The company has a return on equity of 11.4%, a debt to equity ratio of 0.46 and a market capitalisation of Rs 22,064 crore. The stock trades at a P/E of 165.4, above the industry P/E of 48.1. Looking ahead, the company supplies critical parts for fuel cell systems, space launch vehicles and nuclear power programmes, areas where qualification takes years and customer relationships are long-lasting. Added capacity and a growing order book support future revenue.
What risks should investors check before buying defence and strategic manufacturing stocks?
Ans. Investors should check a few risks before buying defence and strategic manufacturing stocks. Order timing. Defence contracts can be lumpy and may shift between quarters. Execution demands. Large programmes need strict delivery and quality schedules. Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them. Reading the latest results presentation and comparing each company with its peers helps judge how these risks apply to each stock.
Is this list of defence and strategic manufacturing stocks investment advice?
Ans. No. This article is educational and uses publicly available data as of the 21 October 2026 close. Please verify figures on NSE and BSE, read company filings and consult a SEBI registered adviser before investing. Univest is SEBI registered research analyst INH000013776.