India’s defense sector is growing rapidly. According to Nirmal Bang Institutional Equities, India’s annual defense production has crossed Rs 1.27 lakh crore and is expected to reach Rs 1.75 lakh crore by FY29. This year, the Ministry of Defense signed 193 contracts, which cost more than Rs 2.1 lakh crore, of which 92% of contracts have been received by Indian companies. Let us know how the move of the defense sector shares will be in the coming time.
Defense exports increased by 12%, reaching Rs 23,620 crore. Government and private companies together exported defense equipment to 80 countries. The target of exports to FY29 is Rs 50,000 crore. Operation vermilion began due to tension with Pakistan, which showed the importance of drone and missile defense. Apart from this, the sector is expected to get an order of Rs 300-350 billion. DRDO has successfully tested scamjet technology for hypersonic missiles.
Crores of deal
The Ministry of Defense signed contracts worth Rs 19,800 crore for devices such as drone detection systems, radars, missiles, drones, bulletproof jackets, helmets, and night sites for rifle. In addition, 10 major procurement projects worth Rs 1.1 lakh crore were approved, including QR-SAM, EW system, and marine mines.
INS Tamal, built by Russia, joined the eighth sword-class frigate, the Indian Navy, but now the Navy is focusing on indigenous designs. According to Nirmal Bang, the future of the defense sector is bright due to Made in India, strong order pipeline and government policies. His top stocks include Hindustan Aeronautics, India Electronics, BEML, and data patterns. However, some stocks have seen a decline of 15% and H1FY26 may cause prices fluctuations. The target price of Hindustan Aeronautics was increased, while the target price of Majgaon Dock was reduced slightly.
Sure Bang advice
Nirmal Bang has given Hindustan Aeronautics (TP: Rs 6,147), Majhgaon Dock (TP: Rs 3,897), Bharat Electronics (TP: Rs 478), BEML (TP: Rs 5,000), Data Pattern (TP: Rs 3,401), Paras Defense (TP: RS 939). At the same time, Solar Industries (TP: Rs 16,651), India Dynamics (TP: Rs 1,788), and Estra Microwave (TP: Rs 1,139) have been asked to hold. Currently, there is a possibility of boom in the defense sector, but some shares may see a slight decline or stability. In the long run this sector is attractive for investment.
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