Goodluck Defence and Aerospace Limited (GDAL), as per its MoA, was incorporated with the object to carry on the business of manufacturing steel ingots or other primary forms, and other semi-finished products of steel or alloys. It was incorporated in 2023 and has its registered office located in Uttar Pradesh.

Snapshot

On 31st August 2024, Goodluck India floated a wholly owned subsidiary for defence sector ventures: Goodluck Defence and Aerospace Pvt. Ltd. to produce cutting-edge military hardware, systems, and forgings with a strong focus on quality, innovation, and precision engineering for national defence.

Products Offered

• Focus on manufacturing 155 mm artillery shells.
• Essential for howitzer systems with a firing range of 24-32 km.
• Versatility in military applications:  High explosive, Precision-guided, Armor-piercing, Fragmentation, Smoke, Illumination variants
• Popular due to optimal balance between range and warhead size.
• Crucial asset in modern warfare.

Management

Financial Snapshot

All values are in INR Cr.

Particulars	FY24
Revenue	3.04
EBITDA	2.60
PAT	1.84
PAT Margin	60.53%

• As of its first year of incorporation, the company has emerged profitable with a 60.53% PAT margin.

Valuation

• Raised ₹40 crore through a rights issue of equity shares.
• Subsequently raised ₹136.50 crore via a preferential issue of equity shares at a premium of ₹140 per share.
• As a result, the company became a subsidiary of Goodluck India Limited.

Particulars	Goodluck Defence and Aerospace
Current Market Price (13/09/24)	306
MCAP	1503 Cr
P/E	816.6
P/B	8.83
P/S	494.3

Industry Overview

• The Indian government encourages domestic manufacturing in defence, involving the private sector.
• Defence exports from India increased by 334% over the past five years, reaching over 75 countries.
• The Ministry of Defence aims to export defence goods worth Rs. 35,000 crore (US$ 4.27 billion) by 2024.
• Aligned with the ‘Make in India’ initiative to strengthen domestic defence capabilities.

Goodluck India’s Defence Contribution

• Current supplies from their forging division contribute 23% of revenue.
• Significant potential for growth with the new defence subsidiary, targeting both domestic government contracts and exports.
• Goodluck Defence and Aerospace Pvt. Ltd. is 81.47% owned by Goodluck India, having raised ₹136.5 crore at a postmoney valuation of ₹764 crore.