{"id":315284,"date":"2026-10-19T09:56:42","date_gmt":"2026-10-19T04:26:42","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=315284"},"modified":"2026-10-19T09:56:42","modified_gmt":"2026-10-19T04:26:42","slug":"defence-psu-stocks-to-watch-multibagger-potential","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/","title":{"rendered":"2 Top Defence PSU Stocks to Watch for Future Multibagger Potential: HAL and Mazagon Dock"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>HAL Rs 4,989. Mazagon Dock Rs 2,092. Market caps from Rs 84,823 crore to Rs 3.33 lakh crore. Data as of 16 Oct 2026.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">HAL and Mazagon Dock are the 2 picks in this defence PSU stocks watchlist, with market caps between Rs 84,823 crore and Rs 3.33 lakh crore. HAL stands out for the largest market cap at Rs 3,33,050 crore, while Mazagon Dock offers the highest return on equity at 26.48%. PE ratios run from 29.72 to 35.73, so compare each one with its industry PE before investing. All figures are as of 16 October 2026.<\/p>\n<\/p><\/div>\n<p>Defence PSU stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. HAL and Mazagon Dock meet that test, with market caps from Rs 84,823 crore to Rs 3.33 lakh crore and HAL offering the largest market cap at Rs 3,33,050 crore. Record defence budgets and a push for local manufacturing give state-owned aircraft and shipbuilding companies long order books.<\/p>\n<p>This list covers listed defence PSU companies with complete, verifiable financials, ranked by market capitalisation. Not every name here is a largecap, so the list takes the leading companies of the sector by market capitalisation. Investors screening defence PSU stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 16 October 2026 and are drawn from NSE and BSE data and company filings.<\/p>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&#038;utm_medium=defence-psu-stocks\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#What_Are_Defence_PSU_Stocks_and_Why_Do_They_Attract_Multibagger_Interest\" title=\"What Are Defence PSU Stocks and Why Do They Attract Multibagger Interest?\">What Are Defence PSU Stocks and Why Do They Attract Multibagger Interest?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Defence_PSU_Stocks_at_a_Glance_Price_Market_Cap_PE_and_ROE\" title=\"Defence PSU Stocks at a Glance: Price, Market Cap, PE and ROE\">Defence PSU Stocks at a Glance: Price, Market Cap, PE and ROE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#HAL_Return_on_Equity_of_2221\" title=\"HAL: Return on Equity of 22.21%\">HAL: Return on Equity of 22.21%<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Mazagon_Dock_4401_Profit_CAGR_Since_FY22\" title=\"Mazagon Dock: 44.01% Profit CAGR Since FY22\">Mazagon Dock: 44.01% Profit CAGR Since FY22<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Defence_PSU_Stocks_Financial_Comparison_on_Growth_and_Margins\" title=\"Defence PSU Stocks: Financial Comparison on Growth and Margins\">Defence PSU Stocks: Financial Comparison on Growth and Margins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Institutional_Holding_in_HAL_and_Mazagon_Dock\" title=\"Institutional Holding in HAL and Mazagon Dock\">Institutional Holding in HAL and Mazagon Dock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Risks_to_Weigh_in_Defence_PSU_Stocks\" title=\"Risks to Weigh in Defence PSU Stocks\">Risks to Weigh in Defence PSU Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#How_to_Choose_Between_Defence_PSU_Stocks\" title=\"How to Choose Between Defence PSU Stocks\">How to Choose Between Defence PSU Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Frequently_Asked_Questions_on_Defence_PSU_Stocks_to_Watch\" title=\"Frequently Asked Questions on Defence PSU Stocks to Watch\">Frequently Asked Questions on Defence PSU Stocks to Watch<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Which_are_the_best_defence_PSU_stocks_to_watch_for_multibagger_potential\" title=\"Which are the best defence PSU stocks to watch for multibagger potential?\">Which are the best defence PSU stocks to watch for multibagger potential?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Is_Mazagon_Dock_a_good_stock_for_long-term_investors\" title=\"Is Mazagon Dock a good stock for long-term investors?\">Is Mazagon Dock a good stock for long-term investors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Can_HAL_become_a_multibagger_from_here\" title=\"Can HAL become a multibagger from here?\">Can HAL become a multibagger from here?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#What_is_the_market_cap_of_HAL_and_Mazagon_Dock\" title=\"What is the market cap of HAL and Mazagon Dock?\">What is the market cap of HAL and Mazagon Dock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#What_are_the_risks_of_investing_in_defence_PSU_stocks\" title=\"What are the risks of investing in defence PSU stocks?\">What are the risks of investing in defence PSU stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#Is_Mazagon_Dock_trading_below_its_industry_PE\" title=\"Is Mazagon Dock trading below its industry PE?\">Is Mazagon Dock trading below its industry PE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/defence-psu-stocks-to-watch-multibagger-potential\/#How_much_do_institutions_hold_in_HAL_and_Mazagon_Dock\" title=\"How much do institutions hold in HAL and Mazagon Dock?\">How much do institutions hold in HAL and Mazagon Dock?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Defence_PSU_Stocks_and_Why_Do_They_Attract_Multibagger_Interest\"><\/span><strong>What Are Defence PSU Stocks and Why Do They Attract Multibagger Interest?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Defence PSU stocks are shares of government-owned defence manufacturers that build aircraft, helicopters, warships and submarines for the armed forces. Earnings depend on the order book, execution pace and margins on contracts.<\/p>\n<p>Defence spending is rising and the government wants more equipment made in India, which gives these companies multi-year orders. Companies with large order books, strong returns on equity and low debt are the ones investors compare in defence PSU stocks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defence_PSU_Stocks_at_a_Glance_Price_Market_Cap_PE_and_ROE\"><\/span><strong>Defence PSU Stocks at a Glance: Price, Market Cap, PE and ROE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Prices are closing prices as of 16 October 2026. Mazagon Dock combines the lowest PE of the group, 29.72, with the highest return on equity, 26.48%.<\/p>\n<table style=\"border-collapse:collapse;width:100%;margin:16px 0;\">\n<thead>\n<tr>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Stock<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">CMP (Rs)<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Market Cap (Rs Cr)<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">PE<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Industry PE<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">ROE<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Debt to Equity<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">52-Week Range (Rs)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\"><a href=\"https:\/\/univest.in\/stocks\/hal\/hindustan-aeronautics-ltd-share-price-today\">Hindustan Aeronautics<\/a><\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">4,989<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">3,33,050<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">35.73<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">48.59<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">22.21%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">0.00<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">3,479.10 to 5,149.90<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\"><a href=\"https:\/\/univest.in\/stocks\/mazdock\/mazagon-dock-shipbuilders-ltd-share-price-today\">Mazagon Dock Shipbuilders<\/a><\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">2,092<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">84,823<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">29.72<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">48.92<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">26.48%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">0.05<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">1,987.70 to 2,881.80<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"HAL_Return_on_Equity_of_2221\"><\/span><strong>HAL: Return on Equity of 22.21%<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hindustan Aeronautics is India&#8217;s state-owned aerospace company that designs, makes and services fighter jets, helicopters, engines and avionics. It reported FY26 revenue of Rs 36,787.95 crore, up 9.68% year on year, and net profit of Rs 9,115.52 crore, up 8.98%. Net profit has compounded at 15.74% a year since FY22, while revenue has grown 9.48% a year. Operating margin was 40.89% in FY26. The debt-to-equity ratio is 0.00, which keeps interest costs low.<\/p>\n<p>In the June 2026 quarter, revenue rose 15.26% to Rs 6,415.41 crore and net profit grew 14.88% to Rs 1,589.66 crore. The share price has gained 607.71% over five years. Domestic institutions raised their holding from 8.71% in September 2025 to 12.56% in September 2026. The stock trades at a PE of 35.73 against an industry PE of 48.59, below the sector average, with a return on equity of 22.21%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Mazagon_Dock_4401_Profit_CAGR_Since_FY22\"><\/span><strong>Mazagon Dock: 44.01% Profit CAGR Since FY22<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mazagon Dock Shipbuilders builds warships and submarines for the Indian Navy and is a key defence shipyard. It reported FY26 revenue of Rs 14,145.71 crore, up 12.77% year on year, and net profit of Rs 2,421.88 crore, up 6.35%. Net profit has compounded at 44.01% a year since FY22, while revenue has grown 23.18% a year. Operating margin was 26.20% in FY26. The debt-to-equity ratio is 0.05, which keeps interest costs low.<\/p>\n<p>The stock trades at a PE of 29.72 against an industry PE of 48.92, below the sector average, with a return on equity of 26.48%. In the June 2026 quarter, revenue rose 10.40% to Rs 3,255.88 crore and net profit grew 22.12% to Rs 512.04 crore. The share price has gained 1461.53% over five years. Promoters hold 81.22%, which keeps ownership stable.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defence_PSU_Stocks_Financial_Comparison_on_Growth_and_Margins\"><\/span><strong>Defence PSU Stocks: Financial Comparison on Growth and Margins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The table compares scale and growth across these defence PSU stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.<\/p>\n<table style=\"border-collapse:collapse;width:100%;margin:16px 0;\">\n<thead>\n<tr>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Stock<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Revenue (Rs Cr)<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Net Profit (Rs Cr)<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Revenue Growth (YoY)<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">4-Year Revenue CAGR<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">4-Year Net Profit CAGR<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Operating Margin (Latest Quarter)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">HAL<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">36,787.95<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">9,115.52<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">9.68%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">9.48%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">15.74%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">44.22%<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">Mazagon Dock<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">14,145.71<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">2,421.88<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">12.77%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">23.18%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">44.01%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">25.82%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"margin-top:24px;\"><a href=\"https:\/\/univest.in\/screeners\"><strong>Check the Univest Screener for live data on these defence PSU stocks<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_Holding_in_HAL_and_Mazagon_Dock\"><\/span><strong>Institutional Holding in HAL and Mazagon Dock<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Institutional holding shows who is backing these government defence company shares alongside the promoter. The table uses the latest reported quarter for each. HAL has the deepest institutional backing, with FII and DII together holding 21.98% as of September 2026. Domestic institutions increased their holding over the past year in HAL (from 8.71% to 12.56%).<\/p>\n<table style=\"border-collapse:collapse;width:100%;margin:16px 0;\">\n<thead>\n<tr>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Stock<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Promoter<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">FII<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">DII<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Public<\/th>\n<th style=\"border:1px solid #BBBBBB;background:#1F4E79;color:#FFFFFF;padding:8px;text-align:left;\">Quarter<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">HAL<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">71.64%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">9.42%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">12.56%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">6.38%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">September 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">Mazagon Dock<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">81.22%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">1.72%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">5.01%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">12.04%<\/td>\n<td style=\"border:1px solid #BBBBBB;padding:8px;\">June 2026<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Risks_to_Weigh_in_Defence_PSU_Stocks\"><\/span><strong>Risks to Weigh in Defence PSU Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Being careful with defence PSU stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:<\/p>\n<ul>\n<li>Defence earnings depend on the timing of orders and deliveries.<\/li>\n<li>Large contracts can take years to complete.<\/li>\n<li><strong>Valuation:<\/strong> A low PE can also reflect slower growth, so compare each PE with the growth rate instead of reading it alone.<\/li>\n<li><strong>Concentration:<\/strong> Holding both names puts the allocation in one sector, so size each position to match your risk appetite.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Choose_Between_Defence_PSU_Stocks\"><\/span><strong>How to Choose Between Defence PSU Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Picking from defence PSU stocks comes down to four checks, applied in order.<\/p>\n<ol>\n<li>Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.<\/li>\n<li>Compare each PE with the industry PE (48.59 to 48.92) and ask whether the growth rate justifies any gap.<\/li>\n<li>Track the order book, revenue growth and the operating margin in every quarterly result.<\/li>\n<li>Stagger entries across quarters and review institutional holding every reporting season.<\/li>\n<\/ol>\n<p style=\"margin-top:24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&#038;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track HAL and Mazagon Dock live prices.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Among defence PSU stocks, HAL stands out for the largest market cap at Rs 3,33,050 crore and Mazagon Dock for the highest return on equity at 26.48%. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing defence PSU stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> 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).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_on_Defence_PSU_Stocks_to_Watch\"><\/span><strong>Frequently Asked Questions on Defence PSU Stocks to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_are_the_best_defence_PSU_stocks_to_watch_for_multibagger_potential\"><\/span><strong>Which are the best defence PSU stocks to watch for multibagger potential?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> HAL and Mazagon Dock are the 2 names this list highlights, with market caps of Rs 3,33,050 crore and Rs 84,823 crore respectively. HAL is notable for the largest market cap at Rs 3,33,050 crore. Mazagon Dock stands out for the highest return on equity at 26.48%. These are watchlist names for defence PSU stocks, not recommendations, so match each one to your own risk profile and time horizon.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Mazagon_Dock_a_good_stock_for_long-term_investors\"><\/span><strong>Is Mazagon Dock a good stock for long-term investors?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Mazagon Dock has a return on equity of 26.48%, a PE of 29.72 against an industry PE of 48.92 and a market cap of Rs 84,823 crore. Net profit has compounded at 44.01% a year since FY22, and FY26 revenue rose 12.77% while June 2026 quarter net profit grew 22.12%. Long-term returns in defence PSU stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_HAL_become_a_multibagger_from_here\"><\/span><strong>Can HAL become a multibagger from here?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> HAL has already gained 607.71% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in government defence company shares requires earnings to keep growing faster than the market for several years. Net profit has compounded at 15.74% a year since FY22, and FY26 revenue rose 9.68%. At a PE of 35.73 against an industry PE of 48.59, valuation should be checked against that growth before investing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_market_cap_of_HAL_and_Mazagon_Dock\"><\/span><strong>What is the market cap of HAL and Mazagon Dock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> As of 16 October 2026, HAL has a market cap of Rs 3,33,050 crore and Mazagon Dock has a market cap of Rs 84,823 crore. HAL is the largest of the group. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on defence PSU stocks.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_risks_of_investing_in_defence_PSU_stocks\"><\/span><strong>What are the risks of investing in defence PSU stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The main risks are delays in orders or deliveries, dependence on government spending and long project timelines. Companies with large order books and low debt handle these better. Comparing each PE with growth gives a fuller picture than the PE alone.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Mazagon_Dock_trading_below_its_industry_PE\"><\/span><strong>Is Mazagon Dock trading below its industry PE?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Mazagon Dock trades at a PE of 29.72 against an industry PE of 48.92. A lower PE means investors pay less for each rupee of earnings, but it should be read with growth (net profit has compounded at 44.01% a year since FY22 and FY26 revenue rose 12.77%) and balance sheet strength before drawing a conclusion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_much_do_institutions_hold_in_HAL_and_Mazagon_Dock\"><\/span><strong>How much do institutions hold in HAL and Mazagon Dock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> As of the latest reported quarter, FII and DII together hold 21.98% of HAL (9.42% and 12.56%) and 6.73% of Mazagon Dock (1.72% and 5.01%). Rising institutional holding is a useful signal in defence PSU stocks, though it should be read with earnings trends rather than on its own.<\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Which are the best defence PSU stocks to watch for multibagger potential?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"HAL and Mazagon Dock are the 2 names this list highlights, with market caps of Rs 3,33,050 crore and Rs 84,823 crore respectively. HAL is notable for the largest market cap at Rs 3,33,050 crore. Mazagon Dock stands out for the highest return on equity at 26.48%. 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