10 Israeli Defence Companies: Market Values Exceed Hundreds of Trillions
Amid heightened tensions in the Israel-US conflict with Iran, defence sector stocks on the Tel Aviv Stock Exchange have recently experienced a significant fundamental trend over an extended period.
Examining share price movements over the past 12 months, the sector has demonstrated extraordinary valuation increases that began after Israel declared war against several nations. This aggressive capital accumulation has been primarily driven by shifting geopolitical dynamics in the Middle East, which has now entered a phase of open warfare between the US-Israeli coalition and Iran since 28 February 2026.
For perspective, Elbit Systems (ESLT) with the largest market capitalisation reaching ₪129.35 billion translates to approximately 707.14 trillion rupiah, equivalent in value to a major banking institution in Indonesia.
Escalation and Long-Term War Projections
Entering the second week of the conflict, regional geopolitical dynamics have undergone structural change. Iran has consolidated its war command by appointing Mojtaba Khamenei as the successor to the new Supreme Leader.
On the ground, military escalation has rapidly expanded to vital economic infrastructure, marked by Israeli strikes against oil depots in Tehran and successive counter-attacks against various strategic facilities in Gulf states. This situation instantly drove global crude oil prices to $100 per barrel.
Warnings from Israel’s Chief of Military Staff that the war will be protracted, combined with expanded US military involvement in the region, provide certainty of demand for defence contractors.
For major companies such as Elbit Systems (ESLT), this proxy war transformed into a full-scale conventional conflict is directly translated into projected surges in military orders. From maintenance of active defence equipment, production of interceptor missiles, to development of smart radar technology, the entire defence supply chain is projected to operate at maximum capacity to anticipate a prolonged conflict.
Annual Performance Surge and Appeal of New Listings
Responding to these fundamental prospects, defence stocks posted historic performance throughout the past year. Based on historical data from March 2025 to March 2026, the majority of listed companies recorded capitalisation growth exceeding 100%.
Aryt Industries (ARYT) emerged as one of the best-performing listings, surging more than 236% year-on-year. Elbit Systems successfully doubled its market valuation with steady increases of approximately 118%.
Most notably for market participants is the strong risk appetite for companies newly listed on the exchange (IPOs) last year. RP Optical Lab (RPOL), for instance, demonstrated exceptionally strong accumulation trends with growth exceeding 223% since trading commenced in mid-2025.
This fact confirms that market liquidity is not only concentrated among major contractors but is also flowing heavily toward more affordable valuations at optical, thermal, and drone solution providers, which are essential in modern warfare.
From the entire list, only Arbe Robotics (ARBE) remains lagging behind the broader sector’s bullish trend.
Disclaimer: This article represents CNBC Indonesia Research journalistic analysis and reflects the research team’s perspective. The analysis is not intended to encourage readers to buy, hold, or sell related investment products or sectors. Decisions rest entirely with the reader, and CNBC Indonesia assumes no responsibility for any losses or gains resulting from such decisions.