Defence stock jumps after it acquires 15% stake in Waveoptix Defence Solutions

A micro-cap defence stock, specializing in the design, development, and manufacturing of equipment for defence and security, gained 2 percent after increasing its stake in Waveoptix Defence Solutions Pvt Ltd. This move underscores the company’s confidence in the expanding defence technology sector and enhances its industry position. 

Share Price Movement 

During Wednesday’s trading session, Krishna Defence & Allied Industries Ltd’s share price hit an intraday high of Rs.660.00 apiece, rising 1.8 percent from the previous close of Rs.648.65 apiece. The share has since retreated and is currently trading at Rs.621.50 per share. 

Acquisition Details 

Krishna Defence and Allied Industries Limited (KDAIL) has successfully acquired an additional 2,500 equity shares in Waveoptix Defence Solutions Private Limited, increasing its total shareholding in the company from 25 percent to 40 percent. This acquisition comes after the approval from KDAIL’s Board of Directors at their meeting on 25th March, 2025.

Waveoptix is a prominent company specializing in the design, development, and manufacturing of RF-over-Fiber systems and fiber optic solutions, catering to industries such as defence, aerospace, SATCOM, and other harsh outdoor environments. As of 31st March, 2025, Waveoptix has a net worth of Rs.7.7 lakh and a turnover of Rs.1.08 crore.

The acquisition is classified as a Related Party Transaction since Waveoptix is already an Associate Company of KDAIL. However, the promoter or promoter group does not have any direct interest in Waveoptix. The transaction has been conducted at an “Arm’s Length Price,” with the valuation provided by a registered valuer. KDAIL has acquired the shares at a price of Rs.19,000 per share, thereby enhancing its stake and solidifying its control over the associate company.

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Products and Services

Krishna Defence has made significant strides in both the defence and dairy sectors. In defence, the company has developed a range of products, including bulb bars and shipyards for naval needs, special steel sections for shipbuilding, and threat management systems such as barricades and police stingers. Additionally, it provides equipment for the Indian Armed Forces, including modular vehicle barriers and automatic tire killers. 

Since 1997, Krishna Defence has also been a pioneer in dairy technology, producing stainless steel milk cans, bulk milk coolers, milking machines, and robotic milk collection units.

Defence Clientele

Krishna Defence & Allied Industries Ltd. has established a strong presence in the defence sector, serving a diverse range of prestigious clientele. The company provides high-quality products and services to key organizations, including the Indian Army, Indian Navy, Border Security Forces (BSF), and the Defence Research & Development Organisation (DRDO). 

Additionally, Krishna Defence works with major defence contractors such as Hindustan Shipyard Limited, Mazagon Dock Shipbuilders Limited, Larsen and Toubro, Garden Reach Shipbuilders & Engineering Limited (GRSE), and Armoured Vehicles Nigam Limited. Other notable clients include Goa Shipyard Limited and AVANI.

Financial Overview

According to its recent financial updates, Krishna Defence & Allied Industries Ltd reported consolidated revenue of Rs.94 crores in H1 FY25, marking a significant 169 percent increase from Rs.35 crores in H1 FY24. Similarly, the company saw an exceptional 267 percent increase in net profit to Rs.11 crores, compared to Rs.3 crores in the same period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 18.85 percent and a Return on Equity (ROE) of 14.92 percent. Its Price-to-Earnings (P/E) ratio stands at 90.97, higher than the industry average of 24.11. Furthermore, the company maintains a current ratio of 6.74, a debt-to-equity ratio of 0.11, and an Earnings Per Share (EPS) of Rs.7.13.

Written by – Siddesh S Raskar

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