Opportunity In Ancillary Defence Firms? What Investors Should Know

Deven Choksey, MD of DR Choksey FinServ Private, offers a comprehensive outlook on India’s defence sector amid rising geopolitical tensions and robust government spending. While the sector continues to benefit from strong order flows, export momentum, and the ‘Make in India’ push, valuations have become increasingly stretched—some stocks trading at 70 to 120 times earnings. Choksey argues that although long-term potential and business visibility remain strong, current pricing leaves little margin for error. He advises caution for new investors and suggests that real opportunities may lie in ancillary defence companies, many of which are still to go public. For those seeking exposure, timing and price discipline could make all the difference.