From BEL, HAL to Mishra Dhatu Nigam— defence stocks surge amid reports of Indian Army to get ₹30,000 crore QRSAM boost
The Nifty India Defence index rose by over a per cent during the session, with stocks such as Dynamatic Technologies, Data Patterns (India), Astra Microwave Products and DCX Systems, jumping 2-7 per cent.
According to an ANI report, the Indian Army is all set to get a ₹ 30,000 crore boost with a new surface-to-air missile system, which the Defence Ministry could soon approve for acquisition.
"The Defence Ministry is scheduled to take up the proposal for buying three regiments of the indigenous Quick Reaction Surface to Air Missile system (QRSAM) for the Army Air Defence for deployment along both western and northern borders," ANI reported, quoting defence officials saying so.
The ANI report further added that the Army Air Defence is also getting a number of new radars, very short-range air defence systems, along with jammers and laser-based systems to deal with drones of Turkish and Chinese origin.
Defence stocks have been on a solid uptrend in the wake of Operation Sindoor in May.
Defence stocks such as Garden Reach Shipbuilders, Cochin Shipyard, Zen Technologies, BEML, Mishra Dhatu Nigam, Data Patterns, BDL and BEL have surged 25-80 per cent over the last one month.
Stocks such as Solar Industries, MTAR Technologies, Mazagon Dock Shipbuilders, Dynamatic Tech, HAL, Cyient DLM and Paras Defence have jumped 10-25 per cent in the same period.
Experts say defence stocks still remain long-term bets due to their solid growth prospects. However, due to the recent rise in stock prices, there could be intermittent profit booking.
"Defence stocks have more steam left for the long term. There could be some profit booking now and then. The story is intact for the long term due to expectations of an increase in the defence budget. So, investors should remain invested for at least the next one to two years," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Tapse recommends buying four defence stocks- Data Patterns, HAL, BEL and BEML- for the long term. He pointed out that the Defence Research and Development Organisation (DRDO) has transferred nine advanced defence technologies to ten public and private sector partners, which could benefit stocks like BEL and BEML.
Read all market-related news here
Read more stories by Nishant Kumar
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
an hour ago
- Indian Express
Reuters' X account blocked in India; govt says no legal requirement made
International news agency Reuters' X account has been withheld in India 'in response to a legal demand', as per notice displayed by the social media platform. However, a government spokesperson said there is no legal requirement made by it to withhold the account and it is working with X to resolve the issue. Reuters' X account is likely to be restored soon. 'There is no requirement from the Government of India to withhold Reuters and we are continuously working with X to resolve the problem,' the spokesperson said. Sources said a demand for blocking of Reuters' X account alongside several hundreds of other accounts was made during Operation Sindoor in May. While several accounts were blocked from accessing in India, Reuters handle wasn't. Elon Musk-owned X seems to have now acted on that request and blocked Reuters' X handle in India. And since the issue isn't relevant now, the government has asked X to explain the blocking and lift the embargo. The official accounts of Chinese media organisation Global Times and Turkish media house TRT World on X were also blocked again citing legal demand, which the government said was not required now. 'There is no requirement from the Government of India to withhold Global times news/trtworld handle. We are continuously working with X to resolve the problem,' the spokesperson said. On random check it was found that Chinese Xinhua News and some other media outlets, that were also blocked during Operation Sindoor, continued to be accessible. 'An order was issued on May 7 (during Operation Sindoor) but it was not enforced. X seems to have enforced that order now which is a mistake on their part. Government has reached out to X for resolving it at the earliest,' an official source said. An email sent to Reuters seeking comments did not elicit a response. While affiliated X handles such as Reuters Tech News, Reuters Fact Check, Reuters Asia, and Reuters China are accessible in India, both official X accounts of the global news agency as well as Reuters World handles are inaccessible. X users attempting to access the main account can see a message that reads: 'Account withheld. @ Reuters has been withheld in IN in response to a legal demand.' On its help centre page, X explains such messages 'about country withheld content' means X was compelled to withhold the entire account specified or posted in response to a valid legal demand, such as a court order or local laws. (At the time of filing this article, the accounts were blocked)
Economic Times
an hour ago
- Economic Times
Is the PSU party just beginning? Where to look for next leg of growth
India's PSUs have delivered a strong turnaround since the pandemic, with FY20–25 PAT CAGR at 36%, outpacing private firms. Despite FY25 earnings consolidation, PSU banks led growth. Valuations have moderated, but fundamentals remain robust. BEL and HAL are well-positioned with strong order books and policy tailwinds, supporting double-digit earnings growth over FY25–27. Tired of too many ads? Remove Ads BEL: Target Rs 410 Tired of too many ads? Remove Ads HAL: Target Rs 5,650 (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) India's public sector undertakings (PSUs) have emerged as a compelling turnaround story in the post-Covid era. Backed by structural reforms, policy tailwinds, and prudent capital allocation, PSUs delivered a stellar 36% PAT CAGR over FY20–25—outperforming the private sector's 26% CAGR—and drove a strong re-rating across the board. The BSE PSU Index posted a 32% CAGR over the same period, led by strength in BFSI, capital goods, and marked a phase of earnings consolidation, with PSU profits declining 2% YoY due to a high base effect and weak oil & gas (O&G) sector performance. Excluding O&G, PSU earnings grew 16% YoY. PSU banks remained the dominant driver, with a 26% YoY profit increase driven by lower credit costs and improved asset quality. Notably, PSUs' share in India Inc.'s total profit pool rose to 37.5% in FY25—up from 20% in FY20—highlighting their expanding relevance in India's corporate earnings multiples have moderated post the FY24 peak, with the BSE PSU Index trading at 11.7x forward P/E in June 2025—down from 13.8x in July 2024 but above the historical average of 9.9x. The sector's ROE remains strong at 16%, and the contribution of loss-making PSUs to total profits has dropped to just 1%, down from 45% in FY18—signaling improved operational forward, PSU earnings are expected to grow at a 10% CAGR over FY25–27, led by BFSI (53% of incremental profit), O&G (20%), and metals (12%). Renewed government capex, Make-in-India momentum, and strong order flows in defence and infrastructure remain key tailwinds. Bharat Electronics (BEL) is poised for strong growth, backed by a robust INR 270 billion order pipeline and strong tailwinds from defence indigenization. The company expects 15% revenue growth in FY26, led by the execution of large orders such as QRSAM and next-gen corvettes, ensuring healthy revenue visibility through R&D investments, enhanced localization, and a strong, debt-free balance sheet with INR 94 billion in cash enable margin resilience and room for capacity expansion. We expect revenue/PAT/EPS CAGR of 17%/16%/19% over FY25– was also among the top five gainers in PSU market cap rankings in FY25, reflecting investor conviction in the capital goods-led PSU growth posted a resilient FY25 with 10% YoY PAT growth, supported by improved margins and normalization of provisions. Despite conservative 8–10% revenue growth guidance, HAL's robust INR 1.8 trillion order book and resolution of engine supply issues for Tejas Mk1A aircraft support execution momentum. The company aims to deliver 12 LCA aircraft in model a revenue/PAT CAGR of 21%/14% over FY25–27, supported by stable EBITDA margins (~29%), strong cash flows, and manageable capex. HAL has also climbed to the 3rd spot among PSUs by market cap in Jun'25, highlighting sectoral leadership and sustained investor interest.
Time of India
an hour ago
- Time of India
Is the PSU party just beginning? Where to look for next leg of growth
India's public sector undertakings (PSUs) have emerged as a compelling turnaround story in the post-Covid era. Backed by structural reforms, policy tailwinds, and prudent capital allocation, PSUs delivered a stellar 36% PAT CAGR over FY20–25—outperforming the private sector's 26% CAGR—and drove a strong re-rating across the board. The BSE PSU Index posted a 32% CAGR over the same period, led by strength in BFSI, capital goods, and utilities. FY25 marked a phase of earnings consolidation, with PSU profits declining 2% YoY due to a high base effect and weak oil & gas (O&G) sector performance. Excluding O&G, PSU earnings grew 16% YoY. PSU banks remained the dominant driver, with a 26% YoY profit increase driven by lower credit costs and improved asset quality. Notably, PSUs' share in India Inc.'s total profit pool rose to 37.5% in FY25—up from 20% in FY20—highlighting their expanding relevance in India's corporate earnings landscape. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold Container Homes in National Capital Region - Prices You Won't Believe! Shipping Container Homes | Search Ads Search Now Undo Valuation multiples have moderated post the FY24 peak, with the BSE PSU Index trading at 11.7x forward P/E in June 2025—down from 13.8x in July 2024 but above the historical average of 9.9x. The sector's ROE remains strong at 16%, and the contribution of loss-making PSUs to total profits has dropped to just 1%, down from 45% in FY18—signaling improved operational discipline. Going forward, PSU earnings are expected to grow at a 10% CAGR over FY25–27, led by BFSI (53% of incremental profit), O&G (20%), and metals (12%). Renewed government capex, Make-in-India momentum, and strong order flows in defence and infrastructure remain key tailwinds. BEL: Target Rs 410 Bharat Electronics (BEL) is poised for strong growth, backed by a robust INR 270 billion order pipeline and strong tailwinds from defence indigenization. The company expects 15% revenue growth in FY26, led by the execution of large orders such as QRSAM and next-gen corvettes, ensuring healthy revenue visibility through FY27. Live Events Consistent R&D investments, enhanced localization, and a strong, debt-free balance sheet with INR 94 billion in cash enable margin resilience and room for capacity expansion. We expect revenue/PAT/EPS CAGR of 17%/16%/19% over FY25–27. BEL was also among the top five gainers in PSU market cap rankings in FY25, reflecting investor conviction in the capital goods-led PSU growth theme. HAL: Target Rs 5,650 HAL posted a resilient FY25 with 10% YoY PAT growth, supported by improved margins and normalization of provisions. Despite conservative 8–10% revenue growth guidance, HAL's robust INR 1.8 trillion order book and resolution of engine supply issues for Tejas Mk1A aircraft support execution momentum. The company aims to deliver 12 LCA aircraft in FY26. We model a revenue/PAT CAGR of 21%/14% over FY25–27, supported by stable EBITDA margins (~29%), strong cash flows, and manageable capex. HAL has also climbed to the 3rd spot among PSUs by market cap in Jun'25, highlighting sectoral leadership and sustained investor interest. (The author is Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd )
