国防研究与资源管理杂志

India – Israel Defense Relationship: Quantitative & Qualitative Analysis of Defense Companies of India and Israel

Arpit Ludhiyani and Satyadhar Joshi

When it comes to India-Israel relations, the most talked about aspect has been the defense relations. Here we have tried to study all the aspects of defense relationship and compared defense industries of India, Israel & US. After the establishment of formal relationship between India & Israel, the defense relationship has grown manifold. Israel is now the second largest source of weaponry for India. Analyzing this relationship was important. We have come out with the model which can predict how the future relationship can be for defense trade between the two nations. Defense trade and investment between the two nations is bound to rise exponentially. We have used three modeling aspects - Multiple Regression on EV/EBTIDA multiple, Projections of share price by Monte Carlo Simulation and Rank Correlation (current year). We find that contribution in multiple (based on MLR) is more from debt and intercept in the companies of Israel and USA. Indian companies are not very good in using debt as tool to amplify shareholder returns. We found that optimizations and controlling sales volatility for Israeli companies and right use of debt for Indian companies can increase the returns. Also we found that margin and multiple have remained stable and is not causing change to the share price as sales volatility.

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