The Indian Defence sector, the second largest armed force is at the cusp of revolution. The Government has identified the Defence and Aerospace sector as a focus area for the ‘Aatmanirbhar Bharat’ or Self-Reliant India initiative. Many PSU`s in defense space has given multi-bagger returns in past 1 to 2 years. We have identified a Micro-cap gem in this space.
Aartech Solonics is a manufacturer of Electrical Machinery and Apparatus N.E.C. Company is a system solution-oriented R&D enterprise in the field of specialized and selected energy appliances. Company has ROCE of 8.31% and ROE of 5.19%. It is a regular dividend paying counter having dividend yield of 0.34%. Company has minimal debt of 2.66Cr with debt equity ratio of just 0.02x.
Also, company has recently made some investments in UK by forming subsidiary under the name of Aartech Solonics UK Limited. We expect some technical investments by company through this subsidiary.
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