30 Din Mein Paise Double: Not BEL OR BDL, But This Rs 925 Defence Stock Gives 105% Returns In 1 Month

At a time when investors are going gaga over defence PSU stocks like Bharat Electronics (BEL), Bharat Dynamics (BDL), and Hindustan Aeronautics (HAL), there is one defence stock listed on NSE SME with a smallcap status that currently, has more than doubled investors money in a matter of 30 days. Just as the famous dialogue of Akshay Kumar in the classic comedy Phir Hera Pheri cited as "25 Din Mein Paisa Double", in the case of this smallcap defence stock, the dialogue fits however as'30 Din Mein Paisa Double'.

This stock is Krishna Defence And Allied Industries trading on the SME segment of NSE. The stock is currently above Rs 925, however, last week touched a new 52-week high of Rs 1,020 apiece on June 21, 2024. From its 52-week low of Rs 170.85 apiece which was recorded on July 6, 2023, the stock has zoomed by 441.6% on NSE.

Currently, the stock price is at Rs 925.30 apiece with a market cap of Rs 1,268.13 crore. But in a matter of months, Krisha Defence stock has jumped nearly 105% from its level of Rs 452 apiece which was seen on May 21, 2024.

In three three-month span, the stock rallied 164%, while year-to-date, it jumped 144%. In a year, the stock skyrocketed by over 400%.

With that Krishna Defence has outperformed defence PSUs like BEL, HAL and BDL. On a month-on-month basis, BEL shares jumped by 3%, while BDL is nearly a per cent up, and lastly, HAL witnessed a muted performance.

Krishna Defence & Allied Industries Limited formerly known as Krishna Allied Industries Ltd is among India's very few manufacturing houses with comprehensive in-house capabilities of designing, developing, and manufacturing a wide range of equipment for Defence, Security, Dairy, and Mega Kitchen verticals.

The company's manufacturing capability includes a wide range of critical assemblies and precision components with close tolerances made possible through in-depth know-how on metallurgy, precision machining, assembly, and specialized fabrication facilities with a series of multi-level inspections during the production process.

Here are some of the key fundamentals of Krishna Defence stock as per Trendlyne data:

- Annual Revenue rose 66.67%, in the last year to ₹107.68 Cr. Its sector's average revenue growth for the last fiscal year was 10.79%.

- Annual Net Profit rose 85.17% in the last year to ₹9.81 Cr. Its sector's average net profit growth for the last fiscal year was 23.13%.

- Stock Price rose 400.16% and outperformed its sector by 256.58% in the past year.

- Return on Equity(ROE) for the last financial year was 9.21%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.

- Debt to Equity Ratio of 0.09 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding remained the same in the last quarter at 0%.

- Interest Coverage Ratio is 12.3, higher than 1.5. This means that it can meet its interest payments comfortably with its earnings (EBIT).

- Promoter Share Holding stayed the same in the most recent quarter at 62.27%.

- Promoter Pledges are zero.

Also, it needs to be noted that Krishna Defence has not given any bonus issues, stock splits or dividends so far unlike BEL, HAL and BDL who have a strong track record in these corporate actions.