Goodluck Defence Unlisted Shares
Buy - ₹195.00
Sell - ₹225.00
About Goodluck Defence Unlisted Shares
Goodluck Defence and Aerospace Private Limited is a newly formed subsidiary of Good Luck India Limited, focusing on the defense and aerospace sector. Established on August 31, 2023, the company aims to become a leading manufacturer of 155 mm artillery shells for both domestic and international defense markets. With a proposed capital expenditure of INR 250 Crore, the company is strategically positioning itself to cater to the increasing demand for high-quality artillery ammunition.
Goodluck Defence plans to leverage advanced forging, machining, and coating technologies to ensure precision, durability, and high performance in its defense products. The company’s production capacity is set at 150,000 artillery shells per annum, making it a significant player in India’s defense manufacturing industry.
2. Business Divisions
1. Artillery Shell Manufacturing
The company specializes in manufacturing 155 mm artillery shells, which are critical components in modern howitzer systems. These shells have a firing range of 24-32 km and are designed for various military applications, including:
- High explosive (HE) shells
- Precision-guided shells
- Armor-piercing shells
- Fragmentation shells
- Smoke and illumination shells
The highest-grade artillery shell (155mm HE, BB AISI 9260) is priced between USD 1000-1200, targeting premium international markets.
2. Technology and Advanced Manufacturing
To ensure world-class quality, Goodluck Defence is implementing state-of-the-art manufacturing techniques, such as:
- Open forging
- Die forging
- Robotic forging
These technologies enhance efficiency, precision, and production capacity, making Goodluck Defence a trusted supplier for defense forces globally.
3. Global Defense Partnerships
The company is actively seeking Original Equipment Manufacturer (OEM) partnerships with major global defense firms, such as:
- Nexter (France)
- Rosoboronexport (Russia)
- Elbit Systems (Israel)
Additionally, Goodluck Defence has received an Expression of Interest (EOI) from Adani Defence & Aerospace, which is interested in purchasing 33% of the company’s annual production. This early market validation highlights the strong demand for its artillery shells.
3. Financial Highlights
- Strong Profitability – The company recorded a PAT (Profit After Tax) of INR 1.84 Crore in 2024, despite being a new entrant.
- High Operating Profit Margins (OPM) – With an 85.67% EBITDA margin, the company demonstrates exceptional operational efficiency.
- Debt-Free Structure – The company has zero borrowings, reducing financial risks and ensuring long-term sustainability.
- Strong Asset Base – The total assets stand at INR 171 Crore, with fixed assets of INR 16.6 Crore.
- Consistent Earnings Per Share (EPS) – The EPS for 2024 is INR 0.37, reflecting positive financial growth and profitability potential.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Parent Company: Backed by Good Luck India, with decades of experience in metal forging and machining.
- Cutting-Edge Manufacturing: Advanced forging technologies ensure high precision and durability.
- High Market Demand: Increasing global defense budgets drive demand for artillery shells.
Cons
- High Capital Expenditure: INR 250 Crore investment may cause initial financial strain.
- Intense Competition: Competing with established manufacturers like Bharat Forge and CHW Forge.
- Regulatory Challenges: Requires government defense agency approvals, potentially delaying production.
