Bharat Electronics and 3 Other Defence Stocks with PE Ratio Less Than Industry to Add to Your Watchlist

Synopsis: Several defence stocks trading below their industry P/E have attracted attention, indicating potential undervaluation. These stocks may offer investment opportunities for long-term growth while balancing risk in a strategic sector.

Defence stocks trading below their industry P/E have attracted investor attention, as lower valuations can indicate potential undervaluation relative to peers. Such stocks may offer opportunities for long-term growth, especially in a sector supported by strong government orders, strategic projects, and rising domestic and export demand. For investors, identifying defence companies with favorable valuations can help balance risk while positioning for potential upside. Below are list of Defence sector stocks trading below the industry P/E

Bharat Electronics Ltd

Bharat Electronics Limited, based in Bengaluru and incorporated in 1954, designs, manufactures, and supplies electronic equipment for defense and civilian markets in India. Its defense products include communication systems, radars, naval and avionics systems, electronic warfare, weapon systems, C4I systems, unmanned systems, and various electronic components. Civilian offerings include e-governance solutions, telecom and broadcast systems, traffic and railway management systems, and solar power solutions.

Bharat Electronics Limited has a market value of Rs. 3,23,348.07 crore, is trading at Rs. 442.40, up by 1.57 percent from its previous day close price of Rs. 435.55 per equity share.

At the moment, the company’s P/E ratio is 53.7x lower as compared to its industry P/E 58.9x. The company’s ROE and ROCE are 29.2 percent and 38.9 percent respectively, and the D/E ratio of 0, indicates the company’s financial performance.

Revenue for Q3FY26 stood at Rs. 7,154 crore, up 23.9 percent YoY from Rs. 5,771 crore in Q3FY25 and increased by 23.51 percent QoQ from Rs. 5,792 crore in Q2FY26. EBITDA rose to Rs. 2,127 crore, marking a 27.5 percent YoY growth and a 25.0 percent QoQ increase from Rs. 1,702 crore, reflecting strong operational performance. 

Profit for the quarter came in at Rs. 1,580 crore, up 20.4 percent YoY from Rs. 1,312 crore and 22.8 percent QoQ from Rs. 1,287 crore, highlighting healthy growth across revenue, operating profit, and net earnings.

Astra Microwave Products Ltd

Astra Microwave Products Limited, based in Hyderabad and incorporated in 1991, designs, develops, manufactures, and sells radio frequency and microwave sub-systems for defense, space, meteorology, civil, and telecom applications. Its products include radar electronics, electronic warfare systems, telemetry and strategic electronics, ground-based radar and satellite sub-systems, and meteorological instruments. 

Astra Microwave Products Ltd has a market value of Rs. 8,695.06 crore, is trading at Rs. 915.80, up by 0.66 percent from its previous day close price of Rs. 909.80 per equity share.

At the moment, the company’s P/E ratio is 54.1x lower as compared to its industry P/E 58.9x. The company’s ROE and ROCE are 14.4 percent and 18.7 percent respectively, and the D/E ratio of 0.24, indicates the company’s financial performance.

Revenue for Q3FY26 stood at Rs. 260 crore, largely flat YoY from Rs. 259 crore in Q3FY25, but up 20.9 percent QoQ from Rs. 215 crore in Q2FY26. EBITDA increased to Rs. 83 crore, marking a 9.2 percent YoY growth and a strong 72.9 percent QoQ rise from Rs. 48 crore, reflecting improved operational efficiency. Profit remained stable YoY at Rs. 47 crore, while rising 95.8 percent QoQ from Rs. 24 crore, highlighting a healthy sequential improvement in earnings.

Krishna Defence & Allied Industries Ltd

Krishna Defence and Allied Industries Limited, based in Mumbai and founded in 1996, designs, develops, and manufactures equipment for defense, security, dairy, and kitchen sectors in India. It operates through Dairy & Kitchen Equipment and Defense Products segments. The company offers defense and security products including shipbuilding steel sections, welding wire, armored vehicle components, crowd control barriers, and IED containment vessels. 

Krishna Defence & Allied Industries Ltd has a market value of Rs. 1,681.22 crore and is trading at Rs. 1,125.90, down by 2.72 percent from its previous day close price of Rs. 1,157.40 per equity share.

At the moment, the company’s P/E ratio is 52.4x lower as compared to its industry P/E 58.9x. The company’s ROE and ROCE are 18.4 percent and 24.3 percent respectively, and the D/E ratio of 0, indicates the company’s financial performance.

Revenue for Q3FY26 stood at Rs. 64 crore, up 23.1 percent YoY from Rs. 52 crore in Q3FY25 and 33.3 percent QoQ from Rs. 48 crore in Q2FY26. EBITDA rose to Rs. 14 crore, marking a 133.3 percent YoY growth and a 55.6 percent QoQ increase from Rs. 9 crore, reflecting improved operating performance. 

Profit increased to Rs. 10 crore, up 150.0 percent YoY from Rs. 4 crore and 42.9 percent QoQ from Rs. 7 crore, highlighting strong growth in earnings both yearly and sequentially.

CFF Fluid Control Ltd

CFF Fluid Control Limited, based in Mumbai and incorporated in 2012, manufactures, overhauls, and maintains shipboard machinery, combat systems, and test facilities for submarines and surface ships of the Indian Navy. It provides defense solutions including system indigenization, integration, installation, commissioning, and lifecycle support for manned and unmanned platforms. 

CFF Fluid Control Ltd has a market value of Rs. 1,116.66 crore and is trading at Rs. 532.40 down by 0.10 percent from its previous day close price of Rs. 532.95 per equity share.

At the moment, the company’s P/E ratio is 38.5x lower as compared to its industry P/E 58.9x. The company’s ROE and ROCE are 17.4 percent and 22.1 percent respectively, and the D/E ratio of 0.02, indicates the company’s financial performance.

Revenue for September 2025 stood at Rs. 104 crore, up 30.0 percent YoY from Rs. 80 crore in September 2024 and 57.6 percent QoQ from Rs. 66 crore in March 2025. EBITDA rose to Rs. 29 crore, reflecting a 26.1 percent YoY growth and a 61.1 percent QoQ increase from Rs. 18 crore, indicating improved operational efficiency. Profit increased to Rs. 19 crore, up 35.7 percent YoY from Rs. 14 crore and 90.0 percent QoQ from Rs. 10 crore, highlighting strong earnings growth both yearly and sequentially.

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