Defence stock: Multibagger with 2,100% returns in focus today; here's why 

Shares of Axiscades Technologies Limited are in focus today after the aerospace and defence firm said its board has cleared the acquisition of a majority stake in Cloud Wave Technologies Private Limited, a Bengaluru-based precision engineering and manufacturing company at an enterprise valuation of nearly Rs 260 crore. Axiscades Technologies shares ended 1.22% lower at Rs 1594 on Friday against the previous close of Rs 1613.65. Market cap of the firm stood at Rs 6779.84 crore.

The aerospace and defence firm has clocked multibagger returns of 2082% in  five years. The defence share has gained 155% in two years and rallied 185% in five years.

The company will acquire 90% of the shareholding in Cloud Wave by September 30, 2026, and the remaining 10% shareholding of Cloud Wave may be subsequently bought by the Company.

The transaction signals a major step in Axiscades' strategy to accelerate the scale-up of its Aerospace Manufacturing platform and add immediately operational precision-manufacturing capabilities alongside its established, product-based Aerospace, Defence and Electronics businesses.

Founded in 2014 and headquartered in Bengaluru, Cloud Wave is an AS9100D-certified manufacturer operating seven manufacturing units, providing precision machining, sheet metal fabrication, tooling, plastic injection moulding, 3D printing & surface treatment capabilities.

Its customer base spans the Aerospace & Defence and Semiconductor sectors across both domestic and export markets.

Axiscades Technologies said the acquisition is not expected to result in any adverse impact on the Company's existing business operations and is expected to be earnings accretive over the medium term, subject to completion of the transaction on the agreed terms.

Axiscades Technologies is an India-based end-to-end technology and engineering solutions provider. The company offers product engineering solutions across embedded software and hardware, digitisation and automation, mechanical engineering, system integration, test solutions, manufacturing engineering, technical publications, and aftermarket solutions.