In recent years, the Indian government’s “Make in India” initiative has significantly boosted the domestic defence manufacturing sector, particularly benefiting companies involved in supplying equipment and components to the Indian Armed Forces.

While large and well-known defence stocks like Solar Industries and Bharat Electronics Ltd. have garnered much attention, there are lesser-known small-cap companies making critical contributions to India’s defence ecosystem-especially in the context of the Pinaka rocket system, a state-of-the-art, indigenously developed multi-barrel rocket launcher.

Two such relatively unknown small-caps are Goodluck India and Nibe Ltd.

Goodluck India has evolved from a traditional steel products manufacturer into a premium provider of engineering solutions, including precision forgings and metal components for high-technology sectors. The company supplies to major defence programs such as the BRAHMOS missile and the Pinaka rocket systems, as well as to organizations like HAL, DRDO, ISRO, and Mazgaon Dock Shipbuilders. Defence currently accounts for about 2% of its revenue, but this share is expected to rise with the commissioning of a new facility dedicated to aerospace and defence applications by the end of FY25. This plant is anticipated to be a game-changer, potentially contributing ₹3-3.5 billion in revenue once operational. Goodluck India’s shift toward value-added, high-margin products, and its strategic investments in defence manufacturing position it as a promising small-cap in the sector.

Nibe Ltd is another emerging player, focusing on both the electric vehicle and defence industries. The company manufactures components that are integral to the Pinaka Launching System and has entered into an exclusive manufacturing agreement with Munitions India Ltd for the export of ammunition. This partnership not only strengthens Nibe’s role in the domestic defence supply chain but also opens up export opportunities. Despite a relatively high price-to-earnings (PE) ratio, Nibe’s strong earnings growth keeps its PEG ratio below 1, indicating robust future prospects.

Both companies exemplify the broader trend of smaller, agile manufacturers moving up the value chain and playing increasingly strategic roles in India’s defence modernization efforts. Their contributions to critical programs like the Pinaka rocket system highlight the growing importance of small-caps in supporting the Indian Armed Forces, both through direct supply of components and through technological innovation and capacity expansion.

Agencies