defense sector shares
The Indian government has set a big target of making the country a global defense manufacturing hub in the coming years. The government wants to achieve defense production worth Rs 3 lakh crore and defense exports worth Rs 50,000 crore by 2029. Under this, the Defense Acquisition Council (DAC) has recently approved defense procurement worth Rs 67,000 crore, which includes state-of-the-art weapons and equipment for the Army, Navy and Air Force. These signs show that the government is serious on the mission of promoting domestic defense production.
Along with this, the Defense Ministry will also demand a 20% increase in its budget for FY27. Experts believe that orders in the defense sector will increase rapidly in the coming months. On the other hand, shares of many defense companies have recently come down from high levels, so investors are paying attention to them again.
Bharat Electronics
Bharat Electronics (BEL) is the country’s leading defense electronics company, which manufactures radar, missile systems and communication equipment for the army. The order book of the company is Rs 75,600 crore, which almost ensures its earnings for the next 5 years. The company is expected to get new orders worth about Rs 57,000 crore in FY26. BEL is also working on a plan to increase its non-defense business by 20%.
Hindustan Aeronautics
Hindustan Aeronautics (HAL) manufactures fighter jets, helicopters and engines for the Indian Air Force. The company has an order book of Rs 2.3 lakh crore, which secures its earnings till FY33. Recently, HAL has received a big order worth Rs 62,400 crore to manufacture 97 new Tejas Mk1A aircraft. The company is also continuously increasing its production capacity.
Bharat Dynamics
Bharat Dynamics (BDL) is a leading company manufacturing missile and torpedo systems. It has an order book of about Rs 23,500 crore and a pipeline of Rs 50,000 crore in the next 5 years. Missile systems have an important role in the recent government approved projects, from which BDL will benefit greatly. All three companies BEL, HAL and BDL are in a position to benefit greatly from the government’s Make in India defense vision in the coming years. Increasing orders, increasing budget and emphasis on domestic production can take these companies to new heights.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.