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Beyond Giants: Small Defence Workshops Capture Investor Eye
1 Nov
Summary
- Two small defence part makers listed on SME platforms in 2026.
- Investor Mukul Agrawal took a 1.21% stake in Apsis Aerocom.
- Companies show strong financial metrics like high ROCE and low debt.
Two small and medium enterprises (SME) in the defence manufacturing sector have recently listed on stock exchanges, attracting investor attention. Apsis Aerocom, incorporated in 2022 and located in Bengaluru, machines precision parts for defence, aerospace, and healthcare, with defence contributing about 65% of its revenue.
Investor Mukul Agrawal acquired a 1.21% stake in Apsis Aerocom, valued at approximately Rs 7.4 crore as of October 30, 2026. This company, trading at an 81x PE, focuses on high-value, low-volume parts, with nearly 40% of its revenue from unique approved supplier roles.
Millworks Technologies, also based in Bengaluru, manufactures machined parts and assemblies for defence, railways, and aerospace. It recently secured development orders from Hindustan Aeronautics Limited (HAL) for critical aircraft components.
Despite strong profit growth and high ROCE, Millworks Technologies faces challenges with a lengthy debtor payment cycle of 340 days. Its stock trades at a 46x PE, below the sector median but above HAL's valuation.
Both companies are SME listings, meaning their shares trade in fixed lots and have lower trading volumes. Financial results are released semi-annually, and certain governance rules applicable to main-board companies do not apply to them.
