Defence Stocks To Watch After DAC’s Rs 79,000 Crore Procurement Approval
The expectations of the Defence Acquisition Council’s approval for defence procurement deals worth Rs 79,000 crore sent some of the defence stocks flying in trade on Monday. Following the announcement during late market hours, some of the stocks will continue to remain in focus, particularly of those companies that are engaged in the manufacturing and production of more than a dozen items mentioned in the procurement list.
Soon after the announcement from the DAC, investors were eager to know which stocks would benefit from the Defence sector in India. To help investors make informed decisions, we will take a look at five defence stocks one should keep an eye on, heading into trade on Tuesday.
Bharat Electronics Limited (BEL)
Bharat Electronics Limited (BEL) is the primary beneficiary of the DAC’s approval as they are engaged in active manufacturing and production of multiple items included in the Acceptance of Necessities. These include Low Level Light Weight Radars, Long Range Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System and Automatic Take-off Landing Recording System, Astra Mk-II Missiles.
Investors who are looking to invest in defence stocks in India should keep a close eye on BEL, as the company is well-positioned to benefit from the defence procurement deals.
Zen Technologies
Zen Technologies is also involved in the manufacturing and production of more than one item mentioned in the procurement list. The company particularly specialises in Integrated Drone Detection & Interdiction System Mk-II for the Indian Army.
They are also involved in the business of producing Full Mission Simulator and SPICE-1000 Long Range Guidance Kits. With the increasing focus on defence technology in India, Zen Technologies is an attractive option for investors.
Bharat Earth Movers Ltd. (BEML)
Another beneficiary is Bharat Earth Movers Ltd. (BEML), which, along with BEL, also produces Long Range Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System.
Investors who are looking to diversify their portfolio with Indian defence stocks should consider BEML, as the company has a strong track record of delivering quality products.
Bharat Dynamics
Along with BEL, Bharat Dynamics is a key manufacturer of Automatic Take-off Landing Recording System and Astra Mk-II Missiles, making them a crucial beneficiary of the DAC package.
With the increasing demand for defence equipment in India, Bharat Dynamics is well-positioned to benefit from the defence procurement deals.
Shipbuilding Pack
Finally, the entire Shipbuilding pack, including the likes of Garden Reach Shipbuilders, Astra Microwave, Cochin Shipyard, and Mazagon Dock will be in focus, primarily due to the mention of Bollard Pull (BP) Tugs, High Frequency Software Defined Radio, a product they are all involved in.
Investors who are looking to invest in shipbuilding industry in India should keep a close eye on these companies, as they are expected to benefit from the defence procurement deals.
Conclusion
In conclusion, the Defence Acquisition Council’s approval for defence procurement deals worth Rs 79,000 crore has sent defence stocks soaring. Investors who are looking to benefit from this trend should keep a close eye on the five defence stocks mentioned above, including Bharat Electronics Limited, Zen Technologies, Bharat Earth Movers Ltd., Bharat Dynamics, and the Shipbuilding pack.
It’s also important for investors to stay up-to-date with the latest news and developments in the Indian stock market news to make informed investment decisions.