If you are trying to find those hidden gems from the sea of stocks you can invest in, these are some examples that have proved their worth over time. With consistent growth, innovation, acquisitions and the pure dedication to succeed, these stocks have proved that India has what it needs to become Aatmanirbhar in defence, aerospace, and engineering acumen.
With multi-crore order books, these companies have their hands full with orders- from the government, from global OEMs, from the military and other institutions. Given their track record, these stocks do have the potential to continue offering multibagger returns if all goes well.
Sigma Advanced Systems
Current market value: ₹9,831 crore
Domain: Aerospace and Defence component manufacturing
How it got here: Sigma Advanced Systems was once known as Megasoft Limited, a dormant and financially distressed IT services firm. Encouraged by India’s Aatmanirbhar Bharat initiative, the Hyderabad-based company pivoted to defence and aerospace manufacturing, and hasn’t looked back since. It produces high end engineered parts and equipment for drones, missiles and radar systems and aerospace components. Today, the company has developed its capabilities to meet stringent technical requirements from leading OEMs like Rolls Royce, Airbus, DRDO, and Hindustan Aeronautics Limited (HAL). The company’s shares have skyrocketed almost 3,000% in the last five years, with the company reporting a stellar 172% rise in net profit during the same period.
Future Potential: Besides the Rolls Royce contract, the Sigma has also won a $21.4 million contract to supply artillery shells to a North American client. The company has been consolidating its balance sheet over the years, while expanding in the US to strengthen its dual shore manufacturing model as it looks to capture high margin, long term global defence and aerospace contracts.
Power Mech Projects
Current market value: ₹8,077 crore
Domain: Infrastructure EPC and O&M player in the power generation, civil engineering and industrial construction sectors.
How it got here: Power Mech Projects is a well established name in the Engineering Procurement and Construction (EPC) and Operating and Maintenance (O&M) sectors for the power generation, civil engineering and industrial construction sectors. Over more than two decades, it has built a global presence with its expertise in the erection, testing and commissioning of complex boilers, turbines and generators for power plants. Besides this, it has also worked to execute state of the art, highly complex and critical infrastructure projects, including setting up a Battery Energy Storage System (BESS) and other industrial engineering projects. The company’s shares have risen by almost 1000% over the past 10 years, with its net profit rising by an astronomical 54.8% CAGR over the last five years.
Future Potential: The company is aiming to transition further into high margin, recurring utility service contracts. To secure its cash flow, it has signed long term O&M contracts while diversifying into urban mass transit infrastructure. Currently, the company has an order book worth ₹55,151 crore with a multi year revenue visibility, the company is looking to strengthen this with another ₹12,000 crore target by the end of FY27. Being one of the few EPC players with a wide ranging experience in implementing crucial, technically challenging infrastructure projects, Power Mech is expected to remain in the spotlight for quite some time now.
Titagarh Rail Systems Ltd
Current market value: ₹11,777 Crore
Domain: Manufacturing freight wagons, railway coaches and rapid transit metro trains.
How it got here: Titagarh Rail Systems evolved from a local manufacturer of heavy steel casting and freight wagons for the Indian Railways to become a leading supplier of state of the art freight wagons railway coaches and now, even rapid transit metro trainsets. The company has grown both organically and inorganically, and has worked to enhance its technical expertise over the years. Over the past five years, the company has given investors an eye watering 2,000% returns, with the company recording a spectacular 53.8% CAGR return over the same period.
Future Potential: The Indian Railways’ push for greater passenger comfort and enhanced traveller facilities through the Vande Bharat trainsets has been a major growth trajectory for the firm. Though competition in the freight wagon segment is higher, Titagarh remains a strong player there as railways look to enhance their freight infrastructure. The metro construction across the country also offers Titagarh another window of opportunity, with the company having an order backlog of almost ₹28,000 crore across its segments.
Hindustan Copper Limited (HCL)
Current market value: ₹47,012 Crore
Domain: Mining, processing, and refining copper
How it got here:
This Public Sector Undertaking (PSU) has been fairly under the radar for long, but has now been thrown into the spotlight for its unique monopoly- its end-to-end mining, processing and refining capabilities for copper. HCL has undergone a major transformation over the years, addressing its inefficient legacy processes. It is now virtually debt free and has grown well due to the heightened demand for copper. The company’s shares have risen almost 241% over the last 5 years, with the company reporting a 55.2% CAGR growth during the period.
Future Potential: With Copper remaining a fundamental building block in the global energy transition towards renewables, HCL’s future growth remains strong. It is now aiming to expand existing mines, reopen stalled ones and open new mines to tap into India’s 755 million tonnes of copper ore reserves.
VA Tech Wabag
Current market value: ₹12,428 Crore
Domain: Wastewater and water management solutions
How it got here: VA Tech Wabag has emerged as a leading player in the waste water treatment solutions space. It has specialises in executing complex waste water treatment plants under the EPC, DBO and Hybrid Annuity Models (HAM). Though consistent innovation, the company has pioneered high tech water recycling, zero liquid discharge (ZLD) plants and massive seawater desalination facilities across India and the Middle East. The Chennai-based company’s shares have risen more than 340% over the last five years, as governments have now realised the importance of efficiently utilizing this finite resource. It has seen its net profit CAGR grow by 27.7% over this time, with the company having an order backlog of ₹17,200 crore.
Future Potential: With the future of mankind hinging on water availability, VA Tech Wabag is looking to leverage this structural shift by transitioning from wastewater treatment to highly complex, high margin industrial wastewater treatment. It is working to capture market share in specialized industrial sectors, including ultrapure water loops for semiconductor fabrication, zero liquid discharge systems for solar PV manufacturing and recycled water ecosystems for green hydrogen production.
Anupam Rasayan
Current market value: ₹14,430.30 Crore
Domain: Specialty Chemical Manufacturer working for pharma, industrial sectors
How it got here: Anupam Rasayan specialises in hazardous and complex chemical production, specially for complex florination. It supplies its products to about 31 multinationals, and has expanded its base through acquisitions. The company’s shares have increased almost 128% since its IPO in 2021, with the company seeing a 35.3% CAGR in net profit for the last five years. The company’s order book is worth almost ₹14,646 crore currently.
Future Potential: The company has traditionally relied on the global agrochemical sector, which accounted for almost 70% of its revenues. With its acquisitions, the Surat-based company is expanding into electronic chemicals, energy storage materials and pharmaceuticals, as it looks to benefit from the global ‘China+1’ supply chain realignment.
Astra Microwave
Current market value: ₹16,338.14 Crore
Domain: Designing, development and manufacturing of high performance RF, Microwave super components and sub-systems for defence and aerospace use.
How it got here: Astra Microwave aims to address India’s heavy reliance on imported, high frequency radar and telecommunications components. It has transformed into a build and print subcontractor to a design led manufacturing partner capable of building advanced tactical systems under its own intellectual property. The company’s shares have risen more than 600% over the past five years, with a 46.2% CAGR growth in net profit during that time. Its order book is valued at about ₹2,610 crore currently.
Future Potential: Astra Microwave has been at the forefront of India’s modernization drive for ground based radar infrastructure. It has enhanced its core competencies of Antenna Array Units, wideband Transmit Receive (T/R) modules and electronic warfare simulators, as a key part of its national defence programs. It is also developing advanced seekers for tactical missiles and satellite communication payloads. After establishing itself with the defence ecosystem domestically, Astra Microwave is now looking to tap into the global defence export markets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
