Best Defence Penny Stocks For Higher Growth in 2025

Defence penny stocks are shares of small, publicly traded companies that are traded at a low price, typically below ₹100 or ₹200 per share. Investors seeking to build a portfolio with small-cap defence penny stocks must also be prepared to face high volatility and risk. Let’s explore together a few important defence sector penny stocks. 

Defence Penny Stocks List By Market Capitalisation

Here is the top-performing defence sector penny stocks list to consider in 2025 for better returns.

Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Overview of Defence Penny Stocks

1. Nibe Ordnance &  Maritime Ltd.

Founded: 1984

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹1.03 crore

Nibe Ordnance and Maritime Limited is a defence manufacturing company that comes under the defence sector penny stocks, dealing with maritime and land defence capabilities. They are in the production of critical systems for both naval and ground forces. They have expertise in ammunition manufacturing, shipyard support, and defence engineering. They also work for maritime defence solutions. As it comes under the small-cap defence sector penny stocks, you can consider if you are exploring the best defence penny stocks in India.

2. Rossell India Ltd.

Founded: 2011

Headquarters: Kolkata, West Bengal

Market Capitalisation: ₹258.00 crore

Rossell India Ltd. is a company that was founded in 2011, but they are in the business of tea. The company rebranded itself in the sector of Aviation and defence manufacturing services, so it’s now considered in the defence sector penny stocks. They are more focused on their earlier business of Tea, so if you are also exploring the small-cap defence sector penny stocks, this may be in your list, and if you are also seeking the best defence penny stocks in India.

3. Kavveri Defence & Wireless Technologies Ltd.

Founded: 1991

Headquarters: Bangalore, Karnataka

Market Capitalisation: ₹187.00 crore

Kaveri Defence and Wireless Technologies Limited is a leader in advanced RF solutions, aerospace, counter-drone systems, and fixed wireless access. They are aligned with the Make in India initiative its also a part of the defence sector penny stocks. They have many subsidiaries engaged in the manufacturing of various defence products. It is classified under defence penny stocks. You can check the details if you are exploring defence sector penny stocks.

4. Bharati Defence & Infrastructure Ltd.

Founded: 1976

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹10.00 crore

Bharat Defence and Infrastructure Limited, formerly known as Bharati Shipyard Limited, began as a partnership firm in 1968, which converted into a limited company in 1976 and later into a public listed company in 1996. It includes advanced shipbuilding and fabrication facilities in Dabhol, Goa, Chennai, and Kolkata. BDIL’s product portfolio includes Anchor Handling Support Vessels, Offshore Support Vessels, and Jack-upgrade smaller defence vessels. It also comes under the defence sector penny stocks. You can consider this stock when exploring the best defence penny stocks in India.

5. Avantel Ltd.

Founded: 1990

Headquarters: Hyderabad, Telangana

Market Capitalisation: ₹3,916.00

Avantel is one of the defence penny stocks which offers innovative, customised network-centric solutions through products that comply with MIL standards for defence platforms, including Ships / Submarines / Aircraft / Helicopters. It is also included in the defence sector penny stocks, and they provide Indigenous solutions in the Aerospace and Defence Electronics domain. If you are interested in defence sector penny stocks, then consider this one in your list of the best defence penny stocks in India

6. JayKay Enterprises

Founded: 1918

Headquarters: Delhi, India

Market Capitalisation: ₹146.10

JK Enterprises is a provider of high precision manufacturing services spanning across Defence, Aerospace, SpaceTech and MedTech. JayKay Enterprises, which is part of The JK Group, so you can consider this one of the high potential defence sector penny stocks in India. If you also want to invest in the best defence penny stocks, look at this company once because it is a defence sector penny stocks unit.

7. Techera Engineering

Founded: 2018

Headquarters: Pune, Maharashtra

Market Capitalisation: ₹329.00

TechEra Engineering Ltd operates in the Aerospace and Automation section in India, as it is a part of the defence sector penny stocks. As it comes under defence penny stocks, if you are interested in penny defence stocks can consider this in your list. As it is small-cap defence penny stocks with high growth potential, check this if you want to invest in the best defence penny stocks in India. 

What are Defence Penny Stocks

Defence penny stocks are the shares of small companies which are publicly traded at a low price, often below ₹ 200. These stocks are highly volatile and have potential for both high gains and significant losses. These companies are in their early stages of development, so they have limited financial resources. As it is Defence penny stocks, it is highly volatile due to low trading volume and limited liquidity. If these defence sector penny stocks,  you choose right then get a multibagger return from them. So if you want to choose defence penny stocks, keep in mind that they give higher returns with higher risk, and if you are a risk-taking investor, then you can go for penny stocks in defence sector.

The best defence penny stocks in India include Nibe Ordnance & Maritime, Rossell India, Kavveri Defence & Wireless Technologies, Bharati Defence & Infrastructure, Avantel, and many more. By choosing penny stocks in defence sector, you can get higher returns with higher risk, so invest only in defence penny stocks if you are a risk-taking investor.

Benefits of Choosing Defence Penny Stocks

•  Low Entry Cost

Defence sector penny stocks are generally priced below ₹100 or ₹200, which you can easily buy, so if you are interested in defence sector penny stocks, then this is beneficial to small and retail investors who want to invest in the best defence penny stocks in India.

• High Growth Potential

Penny stocks in defence sector have high growth potential. It is India’s government’s strong push for Atmanirbhar Bharat and rising defence expenditure due to rising tensions with China and Pakistan. So, if you want to invest in penny defence stocks, it may be the right time because we can see a rise in defence penny stocks because of India’s defence strategy.

• Government Support

Defence penny stocks have a strong support of the Indian government because of their strategic importance. So if you want to invest in the best defence penny stocks, you may be assured that it is backed by the government, which may be the reason behind sustainable returns over the period.

• Rising Export Opportunities

Low-priced defence company stocks have an opportunity to rise as exports of India’s defence sector because India’s government has set a target of ₹50,000 crore in defence exports by 2029. If you are also looking for the best defence penny stocks, it may be the reason behind choosing this Industry because our exports will increase in the coming years.

Factors Affecting Defence Penny Stocks 

There are some factors that may affect defence penny stocks in the coming years.

1. Government Policies and Budget Allocation

Defence sector penny stocks or our defence industry mainly rely heavily on contracts and tenders from the Indian government. India’s defence budget also increases every year, so we can increase our defence spending, then these companies also benefit from this. So, if you want to invest in the defence sector penny stocks, choose wisely.

2. Make in India/Atmanirbhar Bharat Initiatives 

Defence sector penny stocks also benefit from the push for indigenous manufacturing through Make in India and Atmanirbhar Bharat, so that most of the component manufacturers in India may positively impact small-cap defence penny stocks with high growth potential, and most of the manufacturing in the defence sector is inside our country. In that way, we can reduce our dependency on foreign countries. 

3. Geopolitical Tensions and National Security

Defence sector penny stocks are also affected by geopolitical tensions and national security when there is border tension between India and Pakistan, or with China, which usually leads to an increase in defence spending. This is a matter of national security, so we can’t compromise on that. That is the reason behind people investing in the defence sector penny stocks; they are exploring the best defence penny stocks in India.

4. Technological Advancements

Defence penny stocks are dependent on technological advancements, companies innovative in advanced technologies such as drones, AI surveillance, radar systems or missile components, so companies that upgrade their technology according to the need get benefit. Always choose those companies that are advanced in all these technologies. So if you are also looking for defence sector penny stocks or penny stocks in defence sector, choose technological advancements company.

Defence Penny Stocks List With 5-Year Returns

Explore a few of the best defence penny stocks list based on 5-year returns.

Sign up on Univest to have an expert verdicts on the top defence penny stocks list in India.

Defence Penny Stocks List With P/E Ratio 

Explore the best defence penny stocks list with their P/E ratio. 

Defence Penny Stocks List With Dividend Yields

Here is the best defence penny stocks list with dividend yield. 

How to Pick the Top Defence Penny Stocks? 

Here is how to pick from the top defence penny stocks list. Explore the step-by-step guide. 

1. Government Contract and Order

Defence penny stocks, or mostly defence companies, rely on the government for the contracts, so their revenue also depends on these contracts.  Analyse which contract is given to which company by the government. So companies with long-term contracts may generate more revenue and be stable in the long run. Those small-cap defence penny stocks with high growth potential companies which get government contracts, get long-term benefits.

2. Export Opportunities

Defence penny stocks, which come under low-priced defence company stocks more opportunities for export, meaning companies which are growing exports in the International market, and India also wants to increase their defence export, so choose those best defence penny stocks list which have higher potential for export. In that way, we can align with Make in India and the Atmanirbhar Bharat initiative.

3. Technological Advancement

Choose those best defence penny stocks from list that continuously improve their technology and upgrade with a change in times. Those companies that spend more on research & development perform better in technology; accordingly, their performance also increases, and their demand also increases.

4. Backed by the government

Defence penny stocks or the defence sector in India is critically important because it is an industry directly associated with our national security and national interest. Therefore, if you want to invest in defence sector penny stocks, always choose those stocks that are backed by the government. Consequently, the chances of securing more contracts will be higher, and accordingly, revenue and stability will also be affected.

Risks in Defence Penny Stocks and How to Mitigate Them.

By investing in defence penny stocks, you may have potential for high returns, because the government increases expenditure in the defence sector, but there is little risk is also associated with the best defence penny stocks list. Below is a breakdown of major risks and an effective strategy to mitigate the risk. 

1. Low Liquidity Risk

Defence penny stocks generally have low trade volumes, meaning a few buyers and sellers in the market. So it is easily manipulated, and it is difficult to exit a position.

Mitigation Strategy: Select popular stocks from top defence penny stocks to minimise losses due to low liquidity risks.

2. High Volatility 

Defence penny stocks are highly volatile because of policy changes, geopolitical tensions. Price swings can be fast and unpredictable in defence sector penny stocks.

Mitigation Strategy: If you are invested in defence sector penny stocks, then diversify your portfolio with multiple stocks and with multiple sectors, so your dependency on one sector or one stock may be reduced.

3. Corporate Governance issues

Some defence penny stocks suffer from poor governance and promoter-related controversies. Therefore, it is advisable to avoid investing in these types of defence penny stocks, as they can create stability issues.

Mitigation Strategy: If you are also investing in defence penny stocks, please check the promoter holding pattern and avoid companies with frequent board changes and auditor resignations.

4. Pump and Dump Schemes

Defence penny stocks are often targeted by speculators who artificially inflate prices through hype, which then leads to a sudden crash

Mitigation Strategy: If you also invest in defence sector penny stocks, then to avoid stocks with sudden unexplained price spikes, do fundamental and technical analysis of these stocks before investing in defence penny stocks list.

Who can Pick From the Defence Penny Stocks List? 

Here is the list of investors who can pick from the best defence penny stocks list.

1. Risk Tolerant Retail Investors

Defence penny stocks are highly volatile, and prices may fluctuate very fast, so it is ideal for those who are comfortable with short-term volatility. If you also want to invest in defence penny stocks can keep this thing in mind that it is too risky to invest in these types of defence penny stocks.

2. Investors With Small Capital

Defence penny stocks are good for those who want to start investing with a small amount of money because defence penny stocks are generally low-priced price so they allow entry with limited capital.

3. Value Hunters 

Defence penny stocks are good for those investors who are looking for undervalued defence penny stocks list, and these stocks have higher growth potential.

4. Wealth Seeker

If you are an investor seeking the best wealth generation opportunities, defence penny stocks could help you. These stocks may deliver exponential returns over the longer term to increase the wealth of several investors. 

5. Long-Term Investors

For those with high patience and who can wait for a longer time period, consider the best defence penny stocks in India. Defence company penny stocks tend to deliver sustainable returns in the long term. 

How to Invest in Government Penny Stocks? 

Here is the step-by-step guide to investing in the best-performing defence penny stocks in 2025. 

• Step 1: Research the best defence penny stocks with their financials and fundamentals. 
• Step 2: Select the top defence sector penny stocks to diversify your investment portfolio. 
• Step 3: Open a demat account on Univest, navigate to the search section and look for the selected stocks. 
• Step 4: Place a buy order for the best-performing defence sector penny stocks and execute it to invest successfully. 
• Step 5: Track your returns in the portfolio section and wait for the right time to book returns. 

Key Takeaways

• Defence penny stocks come with strong fundamentals, government support, and effective cash flow to show robust growth. 
• Investing in defence penny stocks can help individuals diversify their portfolios and generate sustainable returns. 
• Top defence penny stocks like Avantel, Rossell India Ltd., etc., provide high dividend yield. 
• Investors should consider several factors affecting the best defence penny stocks, such as regulatory changes, market trends, and macroeconomic events. 
• Small investors, long-term investors, and risk takers can benefit from the best defence penny stocks.

Invest in defence sector penny stocks with Univest to generate exemplary returns!

FAQs on the Defence Penny Stocks List 

Which defence penny stocks to buy?

Ans. Here is the top defence penny stocks list to buy now in 2025. 

Disclaimer: Please be aware that investing in penny stocks or the defence penny stocks comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the defence penny stocks list to make an informed investment decision.

Are defence penny stocks risky?

Ans. Yes, defence penny stocks are too risky and they are too volatile, so their price fluctuates very fast and has low liquidity; they can give you a higher return with a high potential of risk, also associated with these defence sector penny stocks

Who can invest in defence penny stocks?

Ans. Investors with high risk tolerance and with small capital can choose defence penny stocks, as these are in their early stages of development. Defence sector penny stocks are traded at a low price, and you can easily enter with a small amount in these defence penny stocks.

Which government penny stocks will boom in 2025?

Ans. Here is the top government penny stocks list, which could boom in 2025. 

Defence Penny Stocks List for Long Term

Read Our Articles on the Best Stocks

Best Cement Stocks To Invest in India

What is Earnings Per Share EPS? 

Top Multibagger Penny Stocks For 2025 |  Potential Picks

Fundamentally Strong Stocks on NSE in 2025

Debt-Free Penny Stocks in India 2025

Best Realty Stocks In India 2025

Debt Free Penny Stocks Below 1 Rupee

Best Hotel Stocks in India to Invest In

Best Bike Stocks in India For 2025

Also Explore

Explore Webstories on Univest 

1. Best Time To Buy Dividend Stocks

2. How RBI Policies Affect Dividend Stocks

3. Can Dividend Stocks Beat Inflation

4. What Is The Dividend Aristocrat List

5. Which Indian Psus Offer The Best Dividends

6. Large Cap Vs Small Cap Dividend Stocks

Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.