3 Defence Electronics and Batteries, Warship and Submarine Builder and Public Sector Shipyard Stocks With a Strong Future Roadmap: HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard
- October 23, 2026
- Posted by: Kunal Singla
- Category: Best Stocks
HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard: ROE of 12.2% to 36.8% and FY22 to FY26 revenue CAGR of 12.0% to 28.0%. Prices as of 22 Oct 2026.
Quick Answer
The three defence electronics and shipbuilding stocks to watch are HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard. Their return on equity ranges from 12.2% to 36.8%, and their revenue compound annual growth from FY22 to FY26 ranges from 12.0% to 28.0%. HBL Engineering leads on both return on equity at 36.8% and revenue growth at 28.0% a year. Prices are based on the 22 October 2026 close, and this article is educational, not investment advice.
Defence electronics and shipbuilding stocks let investors follow companies that equip and build for the armed forces. HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard cover defence electronics and specialised batteries, a warship and submarine builder and a large public sector shipyard.
This list covers three defence electronics and shipbuilding stocks with complete current figures: HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard. Every figure comes from the latest reported financials and the 22 October 2026 market close. Companies without complete current figures were left out.
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What Are Defence Electronics and Shipbuilding Stocks?
Defence electronics and shipbuilding stocks are listed companies that make naval ships, submarines, electronics and power systems. Their earnings depend on order books, execution timelines and the share of indigenous content.
Defence Electronics and Shipbuilding Stocks at a Glance
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE (%) | D/E |
|---|---|---|---|---|---|---|
| HBL Engineering | 784.45 | 22,507 | 28.8 | 36.9 | 36.8 | 0.03 |
| Mazagon Dock Shipbuilders | 1,922.3 | 82,854 | 29.0 | 48.1 | 26.5 | 0.05 |
| Cochin Shipyard | 1,163.9 | 32,227 | 47.4 | 48.1 | 12.2 | 0.28 |
On valuation, all three trade at a P/E below their industry P/E, which means the market is pricing them at a lower multiple than their peer group. Readers comparing defence electronics and shipbuilding 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 Electronics and Shipbuilding Stocks Have a Strong Roadmap in India?
Defence electronics and shipbuilding stocks have a strong roadmap in India because the government is raising defence spending, expanding the navy and favouring indigenous builders.
- Naval expansion. New warships and submarines build a long order pipeline.
- Indigenous orders. Policy support directs procurement to Indian makers.
- Ship repair and commercial work. Added segments widen the revenue base.
Why HBL Engineering Features Among These Defence Electronics and Shipbuilding Stocks
Among the defence electronics and shipbuilding stocks on this list, HBL Engineering, formerly HBL Power Systems, makes specialised batteries, defence electronics, railway safety systems, and electronics for aerospace and industrial use.
In the June 2026 quarter, revenue grew 6.0% year on year to Rs 659 crore. Revenue rose from Rs 1,251 crore in FY22 to Rs 3,362 crore in FY26, a compound annual growth rate of 28.0%.
Net profit grew from Rs 93.7 crore in FY22 to Rs 814 crore in FY26, which works out to a compound annual growth rate of 71.7%. The company has a return on equity of 36.8%, a debt to equity ratio of 0.03 and a market capitalisation of Rs 22,507 crore. The stock trades at a P/E of 28.8, below the industry P/E of 36.9.
Roadmap: The company has grown its defence electronics and railway safety businesses, including systems for collision avoidance, and is expanding its battery lines. Orders from railways and defence customers provide a long runway.
What to watch: Monitor large railway and defence orders and their execution schedules.
Why Mazagon Dock Shipbuilders Features Among These Defence Electronics and Shipbuilding Stocks
Among the naval shipyard and electronics shares on this list, Mazagon Dock Shipbuilders is a Mumbai-based defence shipyard that builds warships and submarines for the Indian Navy and also takes on ship repair and offshore work.
The company has a return on equity of 26.5%, a debt to equity ratio of 0.05 and a market capitalisation of Rs 82,854 crore. The stock trades at a P/E of 29.0, below the industry P/E of 48.1.
Revenue rose from Rs 6,144 crore in FY22 to Rs 14,146 crore in FY26, a compound annual growth rate of 23.2%. Net profit grew from Rs 563 crore in FY22 to Rs 2,422 crore in FY26, which works out to a compound annual growth rate of 44.0%. In the June 2026 quarter, revenue grew 10.4% year on year to Rs 3,256 crore, while net profit rose 22.1% to Rs 512 crore.
Roadmap: The shipyard has a long order book of destroyers, frigates and submarines, and the multi-year build cycle gives revenue visibility. Capacity additions and a push towards indigenous submarine and warship programmes support its position as a core naval supplier.
What to watch: Monitor milestone-linked revenue on the big naval programmes and any fresh orders announced through the year.
Why Cochin Shipyard Features Among These Defence Electronics and Shipbuilding Stocks
Among the three companies on this list, Cochin Shipyard is India’s largest public sector shipyard, building commercial vessels and naval ships, and operating one of the biggest ship repair facilities in the country.
Revenue rose from Rs 3,454 crore in FY22 to Rs 5,432 crore in FY26, a compound annual growth rate of 12.0%. Net profit grew from Rs 564 crore in FY22 to Rs 717 crore in FY26, which works out to a compound annual growth rate of 6.2%.
In the June 2026 quarter, revenue grew 3.4% year on year to Rs 1,161 crore. The company has a return on equity of 12.2%, a debt to equity ratio of 0.28 and a market capitalisation of Rs 32,227 crore. The stock trades at a P/E of 47.4, below the industry P/E of 48.1.
Roadmap: The shipyard has built India’s first indigenous aircraft carrier and is expanding with a new dry dock and an international ship repair facility. Orders from European customers for specialised vessels and a growing repair business add to the mix.
What to watch: Check order inflow from commercial customers and the commissioning of the new dry dock and repair facilities.
HBL Engineering vs Mazagon Dock Shipbuilders vs Cochin Shipyard on Key Financials
The table below sets the three defence electronics and shipbuilding 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 |
|---|---|---|---|---|---|
| HBL Engineering | 1,251 | 3,362 | 28.0% | 814 | 24.2% |
| Mazagon Dock Shipbuilders | 6,144 | 14,146 | 23.2% | 2,422 | 17.1% |
| Cochin Shipyard | 3,454 | 5,432 | 12.0% | 717 | 13.2% |
HBL Engineering posts the highest return on equity in this group at 36.8%. Mazagon Dock Shipbuilders has the largest FY26 revenue at Rs 14,146 crore, and HBL Engineering shows the fastest revenue growth with a 28.0% compound annual rate. A useful habit with defence electronics and shipbuilding stocks is to check each new quarterly result against the capacity plans the company described earlier.
The June 2026 quarter, the latest reported, gives a fresh read on momentum:
| Company | Q1 FY26 Revenue (Rs Cr) | Q1 FY27 Revenue (Rs Cr) | Year-on-Year Growth |
|---|---|---|---|
| HBL Engineering | 621 | 659 | 6.0% |
| Mazagon Dock Shipbuilders | 2,949 | 3,256 | 10.4% |
| Cochin Shipyard | 1,123 | 1,161 | 3.4% |
Key Risks to Check Before Investing in Defence Electronics and Shipbuilding Stocks
Every theme carries risks that deserve a check before any decision. For these defence electronics and shipbuilding stocks, the main points are: Long-term naval shipyard and electronics shares holders usually track revenue growth, margins and cash flow side by side rather than relying on a single ratio.
- Order timing. Government contracts can shift between quarters.
- Execution risk. Complex programmes need careful delivery.
- 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 electronics and shipbuilding stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.
Final Thoughts on Defence Electronics and Shipbuilding Stocks
Defence electronics and shipbuilding stocks reward investors who follow order books, execution and indigenous content together. HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard each hold a key place in defence supply. Based on the 22 October 2026 close, HBL Engineering trades at Rs 784.45, Mazagon Dock Shipbuilders at Rs 1,922.3 and Cochin Shipyard at Rs 1,163.9. Valuation matters as much as growth, so compare each company’s P/E with its industry P/E before adding any of these defence electronics and shipbuilding stocks to a watchlist.
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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 electronics and shipbuilding stocks?
Ans. Defence electronics and shipbuilding stocks are listed companies that make naval ships, submarines, electronics and power systems. Their earnings depend on order books, execution timelines and the share of indigenous content. This list looks at three of them, HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard, using reported FY22 to FY26 financials and the 22 October 2026 closing prices.
Which defence electronics and shipbuilding stocks are covered in this list?
Ans. This list covers HBL Engineering, Mazagon Dock Shipbuilders and Cochin Shipyard. Based on the 22 October 2026 close, HBL Engineering traded at Rs 784.45, Mazagon Dock Shipbuilders at Rs 1,922.3 and Cochin Shipyard at Rs 1,163.9. Their return on equity ranges from 12.2% to 36.8%, and their revenue compound annual growth from FY22 to FY26 ranges from 12.0% to 28.0%.
Why do defence electronics and shipbuilding stocks have a strong future roadmap in India?
Ans. Defence electronics and shipbuilding stocks have a strong roadmap in India because the government is raising defence spending, expanding the navy and favouring indigenous builders. The main drivers are as follows. Naval expansion. New warships and submarines build a long order pipeline. Indigenous orders. Policy support directs procurement to Indian makers. Ship repair and commercial work. Added segments widen the revenue base. Together these factors give the companies on this list a visible path for growth over the coming years.
How has HBL Engineering performed financially?
Ans. Revenue rose from Rs 1,251 crore in FY22 to Rs 3,362 crore in FY26, a compound annual growth rate of 28.0%. Net profit grew from Rs 93.7 crore in FY22 to Rs 814 crore in FY26, which works out to a compound annual growth rate of 71.7%. In the June 2026 quarter, revenue grew 6.0% year on year to Rs 659 crore. The company has a return on equity of 36.8%, a debt to equity ratio of 0.03 and a market capitalisation of Rs 22,507 crore. The stock trades at a P/E of 28.8, below the industry P/E of 36.9. Looking ahead, the company has grown its defence electronics and railway safety businesses, including systems for collision avoidance, and is expanding its battery lines. Orders from railways and defence customers provide a long runway.
How has Mazagon Dock Shipbuilders performed financially?
Ans. Revenue rose from Rs 6,144 crore in FY22 to Rs 14,146 crore in FY26, a compound annual growth rate of 23.2%. Net profit grew from Rs 563 crore in FY22 to Rs 2,422 crore in FY26, which works out to a compound annual growth rate of 44.0%. In the June 2026 quarter, revenue grew 10.4% year on year to Rs 3,256 crore, while net profit rose 22.1% to Rs 512 crore. The company has a return on equity of 26.5%, a debt to equity ratio of 0.05 and a market capitalisation of Rs 82,854 crore. The stock trades at a P/E of 29.0, below the industry P/E of 48.1. Looking ahead, the shipyard has a long order book of destroyers, frigates and submarines, and the multi-year build cycle gives revenue visibility. Capacity additions and a push towards indigenous submarine and warship programmes support its position as a core naval supplier.
How has Cochin Shipyard performed financially?
Ans. Revenue rose from Rs 3,454 crore in FY22 to Rs 5,432 crore in FY26, a compound annual growth rate of 12.0%. Net profit grew from Rs 564 crore in FY22 to Rs 717 crore in FY26, which works out to a compound annual growth rate of 6.2%. In the June 2026 quarter, revenue grew 3.4% year on year to Rs 1,161 crore. The company has a return on equity of 12.2%, a debt to equity ratio of 0.28 and a market capitalisation of Rs 32,227 crore. The stock trades at a P/E of 47.4, below the industry P/E of 48.1. Looking ahead, the shipyard has built India’s first indigenous aircraft carrier and is expanding with a new dry dock and an international ship repair facility. Orders from European customers for specialised vessels and a growing repair business add to the mix.
What risks should investors check before buying defence electronics and shipbuilding stocks?
Ans. Investors should check a few risks before buying defence electronics and shipbuilding stocks. Order timing. Government contracts can shift between quarters. Execution risk. Complex programmes need careful delivery. 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 electronics and shipbuilding stocks investment advice?
Ans. No. This article is educational and uses publicly available data as of the 22 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.
