Multibagger Small-Cap Defence Stock Rallies 9% After Q2 PAT Rises Over 60% to ₹49 Crore

A small-cap defence company recorded a standout performance in Q2, with its net profit soaring by over 60% year-on-year to around ₹49 crore, prompting the shares to rally by approximately 9% in today’s trading.

The strong earnings suggest the company is benefiting from increased defence orders and improved execution in its business verticals. While sales growth details were not disclosed in the initial announcement, the sharp jump in profit points to margin expansion and operational leverage.

Investors appear to have responded to the earnings beat, viewing the firm as a potential multibagger based on its niche defence positioning and recent performance.

However, analysts caution that while the profit trajectory is favourable, potential risks remain: order book visibility, margin sustainability, and sector-specific regulatory or procurement delays.

In summary, the strong quarterly outcome adds fuel to the stock’s momentum, but investors are advised to balance the upside potential with the broader execution and risk framework.