Defence Stocks: PSU Giants Or Private Players? Rakesh Vyas Reveals His Top Investment Strategy

Defence stocks remain in focus as governments globally increase spending amid geopolitical uncertainty. While BEL and HAL have corrected from their previous highs, investors are now assessing where the next opportunity lies. Rakesh Vyas, CIO & Portfolio Manager, Quest Investment Managers, explains why large defence PSUs may face challenges in delivering growth above 15–20% given their current scale and valuations. He believes the bigger opportunity could lie in private companies entering the aerospace and defence segment. The discussion also highlights companies transitioning from auto ancillaries into higher-margin aerospace and defence businesses, offering potentially stronger growth prospects than traditional PSU defence stocks.