Mazagaon Dock, HAL or BEL?: Which defence stock should dominate your 2025 watchlist
The surge in defence stocks isn’t confined to public-sector giants. India’s private sector is gaining traction, offering innovative technologies that could redefine the investment landscape.
- Dec 28, 2024,
- Updated Dec 28, 2024 3:58 PM IST
India’s defence sector is rewriting its growth story, powered by government-backed policies aimed at bolstering domestic manufacturing. With production surging to Rs 1.3 trillion, the government's ambitious target is to touch Rs 1.8 trillion by FY25.
This scale-up isn’t just about numbers; it’s reshaping the global narrative around India as a defence powerhouse.
The Defence Acquisition Council (DAC) has ramped up approvals to Rs 4.4 trillion in 2023, a 29 percent jump year-on-year. This allocation reflects India's focus on operational readiness while driving a sustained push toward self-reliance.
Brokerage firm Antique sees the defence sector poised for a strong close to FY25. Despite a 20 percent dip in capital spending in the year’s first half, the stage is set for a significant uptick in Q4FY25, with multiple large-scale orders nearing finalisation.
The Rs 1.7 trillion capital outlay in the 2024 budget reinforces this optimistic outlook.
Antique identifies Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Mazagaon Dock, and PTC Industries as top investment picks.
Here’s a quick breakdown:
HAL: Eyes are on the delivery of Tejas Mk1A, supported by the F-404 engines from GE Aviation. Target price: Rs 5,902.BDL: Delays in the Akash Weapon System supply are easing, offering growth prospects. Target price: Rs 1,357.Mazagaon Dock: Submarine projects like the Kalvari-class expansion (₹350 billion) and P75I (six AIP-class submarines) elevate its potential. Target price: Rs 5,513.PTC Industries: Emerging as a leader in titanium and superalloy engineering, it’s carving out a global niche. Target price: Rs 19,653.BEL: With robust government orders, BEL’s visibility in revenue and exports continues to grow. Target price: Rs 373.
The surge in defence stocks isn’t confined to public-sector giants. India’s private sector is gaining traction, offering innovative technologies that could redefine the investment landscape.
Antique underscores that the recent price corrections in defence stocks present a lucrative entry point, making 2025 an opportune year for investors eyeing this transformative sector.
India’s defence sector is rewriting its growth story, powered by government-backed policies aimed at bolstering domestic manufacturing. With production surging to Rs 1.3 trillion, the government's ambitious target is to touch Rs 1.8 trillion by FY25.
This scale-up isn’t just about numbers; it’s reshaping the global narrative around India as a defence powerhouse.
The Defence Acquisition Council (DAC) has ramped up approvals to Rs 4.4 trillion in 2023, a 29 percent jump year-on-year. This allocation reflects India's focus on operational readiness while driving a sustained push toward self-reliance.
Brokerage firm Antique sees the defence sector poised for a strong close to FY25. Despite a 20 percent dip in capital spending in the year’s first half, the stage is set for a significant uptick in Q4FY25, with multiple large-scale orders nearing finalisation.
The Rs 1.7 trillion capital outlay in the 2024 budget reinforces this optimistic outlook.
Antique identifies Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Mazagaon Dock, and PTC Industries as top investment picks.
Here’s a quick breakdown:
HAL: Eyes are on the delivery of Tejas Mk1A, supported by the F-404 engines from GE Aviation. Target price: Rs 5,902.BDL: Delays in the Akash Weapon System supply are easing, offering growth prospects. Target price: Rs 1,357.Mazagaon Dock: Submarine projects like the Kalvari-class expansion (₹350 billion) and P75I (six AIP-class submarines) elevate its potential. Target price: Rs 5,513.PTC Industries: Emerging as a leader in titanium and superalloy engineering, it’s carving out a global niche. Target price: Rs 19,653.BEL: With robust government orders, BEL’s visibility in revenue and exports continues to grow. Target price: Rs 373.
The surge in defence stocks isn’t confined to public-sector giants. India’s private sector is gaining traction, offering innovative technologies that could redefine the investment landscape.
Antique underscores that the recent price corrections in defence stocks present a lucrative entry point, making 2025 an opportune year for investors eyeing this transformative sector.