'Defence stocks poised to do well,' says Vinit Bolinjkar; prefers REC & PFC over IREDA

Vinit Bolinjkar, Head of Research at Ventura Securities, expressed a strong positive outlook for the defence sector. Speaking to Business Today on Tuesday, he said, "The defence segment is poised for significant growth. Investors should consider buying on dips, as global military spending is expected to rise sharply in the near future. With regional conflicts intensifying and each nation prioritising its own security, the need for defence preparedness is becoming increasingly urgent. I believe the Indian defence sector is well-positioned to benefit from this global trend."

When asked about Indian Renewable Energy Development Agency (IREDA) Ltd, he said, "If IREDA has delivered a strong set of numbers, then REC Ltd and Power Finance Corporation (PFC) Ltd are also likely to post stellar results. Currently, IREDA is relatively expensive compared to the other two. So, my preference is more towards REC and PFC, which appear to be significantly undervalued in comparison."

State-run renewable energy financier IREDA delivered a strong performance for the quarter ended on June 30, 2025 (Q1 FY26), reporting robust year-on-year (YoY) growth across key financial metrics.

Loan sanctions during the quarter rose 29 per cent to Rs 11,740 crore, up from Rs 9,136 crore in the same period last year. Loan disbursements saw an even sharper increase, climbing 31 per cent YoY to Rs 6,981 crore, compared to Rs 5,326 crore in Q1 FY24.

The company's loan book outstanding also witnessed healthy growth, rising 27 per cent to Rs 79,960 crore from Rs 63,207 crore a year earlier.

On the stock-specific front, IREDA was last seen trading marginally higher by 0.06 per cent at Rs 170.20. In contrast, shares of PFC and REC were down by 1.10 per cent and 0.57 per cent, respectively.

Separately, market expert Bolinjkar remained highly bullish on textile stocks, particularly in the garment segment.