Defence stocks to buy in India: Global brokerage Jefferies, in its latest report, notes that the global geo-political tensions and India’s rising focus on self-reliance are fueling order flow and revenue growth for domestic defence companies.

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The government's focus on building country-to-country relations to promote exports is the icing on the cake. Two-times growth in domestic defence spending in FY24E–30E should continue to drive stock upside, the brokerage said in its report.

Given this, Jefferies has initiated coverage on Hindustan Aeronautics (HAL) and Data Patterns with Buy and remains positive on Bharat Electronics (BEL). The brokerage added that export defence opportunities should rise at a 21 per cent CAGR in FY23–30.

HAL share price target

Jefferies has initiated coverage on Hindustan Aeronautics with a buy call. The brokerage has placed the target at Rs 3,900. 

HAL share price NSE

HAL shares settled at Rs 3,548, up Rs 144.65 or 4.25 per cent on NSE.

Data Patterns share price target 

Jefferies has initiated coverage with a buy call on Data Patterns India with a target price of Rs 3,545. In-house technology and a 30 per cent+ EPS CAGR are the upside drivers for the stock, as per the brokerage. 

Data Patterns share price NSE

Data Patterns shares jumped 9.79 per cent to the day's high of Rs 2,814.7 on the NSE in morning deals, rising for the second day. The counter settled at Rs 2,714.5, up 5.89 per cent. 

Bharat Electronics share price target

Jefferies has maintained a buy on Bharat Electronics. The brokerage has raised the target price on the stock to Rs 260 from Rs 225. Jefferies notes that the stock is a steady play on overall defence spend.

Bharat Electronics share price NSE

Bharat Electronics gained as much as 5.47 per cent to clock its 52-week high of Rs 222.65, surpassing the earlier peak of Rs 216.8 touched on March 7, 2024, on the NSE. The counter closed at Rs 221.65, up five per cent. 

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