Elara Capital sees up to 80% upside potential in stocks from defence and capital goods segment including names likes RITES, Bharat Electronics, HAL, LG Electronics India and more
Defence stocks HAL, Mazagon Dock, Cochin Shipyard, Bharat Dynamics Share Price Targets: The defence stocks are trading near their 52 week lows even as the DAC approved various proposals worth an estimated cost of about Rs 2.38 lakh crore last week.
In a key update for India’s defence preparedness, the HAL Tejas fleet is expected to resume operations soon. D K Sunil confirmed that a technical issue was identified and is currently being addressed by expert committees. The matter has been reviewed by the Local Modification Committee (LMC), and necessary checks are underway. Officials expect that within the next week, required inspections will be completed, allowing the aircraft to return to the skies. This development is crucial for the Indian Air Force, as Tejas plays a significant role in strengthening indigenous defence capabilities and enhancing operational readiness.
In a major boost to India’s defence preparedness, the HAL's LCA Tejas fleet is set to resume operations soon. According to D K Sunil, the Local Modification Committee (LMC) process has been completed, and final clearance is expected shortly. The Indian Air Force will carry out one-time checks before deploying the aircraft back into active service. The fleet includes 36 aircraft, comprising 32 fighter jets and 4 trainers. This development marks a significant step in strengthening India’s indigenous defence capabilities. Built by Hindustan Aeronautics Limited, Tejas remains a key pillar of the country’s push for self-reliance in defence manufacturing.
Defence stocks to buy: B&K Securities suggested 'Buy' on Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) and 'Hold' on Bharat Dynamics Ltd (BDL).
MOSL listed BHEL, Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Astra Microwave and Zen Technologies as its major picks post the DAC's approval.
During the Rajya Sabha Question Hour, Civil Aviation Minister Ram Mohan Naidu underscored India’s growing ambitions in aircraft manufacturing through strategic global partnerships, including with Embraer, and collaborations with Hindustan Aeronautics Limited (HAL). He highlighted that these initiatives aim to boost domestic production capabilities, enhance regional connectivity, and reduce dependence on imports. The push is part of a broader vision to position India as a significant player in the global aviation supply chain. By strengthening manufacturing and fostering innovation, the government aims to create jobs and support long-term growth in the aviation sector.
"Defence is one segment where things are likely to remain insulated from most external factors. Even input costs are largely stable for these companies, given the nature of their manufacturing. BEL (Bharat Electronics Ltd) and HAL (Hindustan Aeronautics Ltd) look quite attractive to me," the market expert told Business Today.
Brokerage firm SMIFS has penciled 10 techno-funda stock picks including HAL, Infosys, ITC, PFC, LIC, L&T, BEML for 20-32 per cent upside in next 4-6 months.
Choice Institutional Equities has reiterated its positive outlook on India's defence sector, highlighting continued growth opportunities despite ongoing geopolitical tensions in the Middle East.
MOFSL is positive on Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), Bharat Dynamics Ltd (BDL), Astra Microwave Products Ltd and suggested 'Neutral' rating on Zen Technologies Ltd.
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