From ₹421 to ₹1,479: This defence stock has turned ₹1 lakh into ₹3.5 lakh in just 7 months despite market volatility

In recent times, when the equity market was experiencing volatility, some stocks managed to defy the odds and deliver solid returns to their investors. AXISCADES Technologies (ACTL), a technology and product company with experience in the aerospace, defence, and ESAI (electronic systems and industrial automation) sectors, is one such stock that has given hefty returns to its shareholders in the past seven months, despite consolidation in the broader market amid valuation concerns.

AXISCADES Technologies, which was priced at ₹30 in March 2020, touched a record high of ₹798 on the BSE in January 2024. However, the defence stock saw some profit booking at higher levels and slipped to its 52-week low of ₹421.05 on November 26, 2024.

In the last seven months, the small-cap stock hit multiple all-time highs and touched a fresh record high of ₹1,479 in intraday trade on June 20, rebounding 251% from the 52-week low level. To put it in perspective, an investment of ₹1 lakh made in November 2024 in the stock and held over time would have grown to over ₹3.5 lakh.

With a market capitalisation of around ₹6,000 crore, ACTL shares are trading higher than the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock has moved from a “fair” to an “expensive valuation” grade, with a price-to-earnings (P/E) ratio of 79 and return on capital employed (RoCE), a financial ratio that measures how efficiently a company uses its capital to generate profits, of around 14%.

What fuelled the rally in ACTL shares?

The recent rally in ACTL shares can be attributed to a series of significant global partnerships and its growing presence in the aerospace, defence, and space technology sectors.

In a fresh development, AXISCADES Technologies and Indra, a European defence and aerospace leader, signed an agreement to collaborate on the production of solutions for the aerospace and defence markets. The deal was signed between the two parties at the Paris Air Show on June 16, 2025.

According to the deal, both companies aim to manufacture in India several Indra solutions, such as distance measuring equipment (DME) that provides in-flight information to aircraft, and countermeasure systems, as part of a broader system designed by Indra to protect aircraft in flight from potential missile attacks using guided systems, such as the well-known MANPADS. They are evaluating collaborations in MPA Airborne Solutions and exploring a dedicated partnership for DRDO CABS MRMR and MMMA programmes.

How did the company perform last year?

For the full financial year 2024–25, ACTL reported total revenue of ₹1,031 crore, up 7.9% from ₹955 crore in FY24. The profit after tax (PAT) more than doubled to ₹75 crore as compared to ₹33 crore in FY24. On the operating front, EBITDA was up 6.9% at ₹142 crore, while the margin declined by 20 basis points to 13.8%.

During the year, revenues from the core domain, comprising aerospace, defence, and ESAI, increased by 12% YoY, primarily fuelled by the defence (16%) and aerospace (13%) sectors.

As of March 31, 2025, ACTL’s gross debt stood at ₹189 crore for FY25 as against ₹238 crore for FY24, while net debt reduced from ₹39 crore to ₹15 crore. The cash, cash equivalents, bank balances, deposits, and liquid investments stood at ₹174 crore, while shareholders’ equity (net worth) was ₹655.8 crore.

ACTL, in its March quarter earnings report, said the company aims to achieve revenue of ₹9,000 crore by 2030, with a minimum EBITDA growth of 24%. “This goal can only be achieved by climbing up the value chain; offering manufacturing and maintenance solutions and developing and selling innovative products. In other words, we need to invert the current services-to-product/solution ratio of 80:20 to 20:80,” said Chairman Sampath Ravinarayanan.

Established in August 1990 as IT&T Enterprises Private Limited, ACTL initially commenced with BPO activities. Subsequently, with mergers and acquisitions over the years, the company expanded its business into the aerospace, defence, electronics, semiconductors, and AI sectors. The company has delivery centres in Hyderabad, Chennai, and Bengaluru, and also has a presence in America and Europe through its overseas subsidiaries