Synopsis:
Sunita Tools jumped sharply after acquiring a 51% stake in Avisan Global Tech and Avisan Engineering Enterprises, which work in naval defence, services ranging from weapon installation, shipbuilding, and ship retrofitting.
The shares of this leading defence company engaged in the business of manufacturing, machining & grinding of engineering goods, steel plates & manufacture of mould bases & die sets are in focus after annoucing a key acquisition. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 535 crore, the shares of Sunita Tools Ltd reached a day’s high of Rs 852.10 per share (upper circuit), up 5 percent from its previous day’s closing price of Rs 811.55 per share. In the last one year, the stock has delivered a return of 52 percent, outperforming NIFTY 50’s return of 12 percent.
About the Acquisition
Sunita Tools Limited announced that it has made a significant move to increase its defence footprint by acquiring a 51 percent stake in Avisan Global Tech and Avisan Engineering Enterprises. These companies work in naval defence, and their main activities are weapon installation, shipbuilding, and ship retrofitting.
Avisan Group has combined sales of Rs 6.27 crore in FY25 and boasts a strong order book of Rs 20.53 crore. The main clients are the Navy Weapons Department, Hindustan Shipyard, Goa Shipyard, Cummins, Larsen & Toubro, etc. The management said that the collaboration will propel Sunita Tools to become a fully-fledged defence company and realise substantial growth in the next couple of years.
By this acquisition, Sunita Tools wants to extend its defence portfolio to include areas such as naval and shipbuilding, besides the existing ones like artillery shells and precision components. The company is confident that this step will position it as a leading player in the Indian naval and shipbuilding ecosystem.
Q2 Highlights
Sunita Tools reported a core revenue of Rs 15.70 crore in H1 FY26, a slight growth of 2 percent as compared to Rs 15.33 crore in H1 FY25. Additionally, it grew by 6 percent from Rs 14.75 crore in H2 FY25.
Regarding its profitability, it reported a net profit of Rs 2.88 crore in H1 FY26, a decline of 16 percent as compared to Rs 3.41 crore in H1 FY25. However, it recorded a staggering growth of 68 percent from Rs 1.71 crore in H2 FY25.
Sunita Tools Limited, engaged in the engineering and mould base industry, specialises in manufacturing ground plates, mould bases, and precision CNC-machined components. Its products serve as critical components across diverse sectors, including automotive, pharmaceuticals, electronics, consumer goods, aerospace, and defence, with rigorous quality testing ensuring compliance with industry standards.
Written by Satyajeet Mukherjee
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