Defence Stocks For up to 25% Gains: HAL, BEL, Midhani and Astra Microwave; check target prices
Defence Stocks to Buy: ICICI Direct has picked a total of 4 defence stocks for investors, including 3 defence PSU stocks. These include Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Midhani and Astra Microwave. Check target prices for up to 25 per cent gain.
4 Defence Stocks to Buy: The Nifty India Defence Index has registered phenomenal growth in the last 1 year thanks to a recent surge due to Operation Sindoor. Due to the central government's excessive focus on the Make in India campaign, the Nifty India Defence Index has jumped by over 40 per cent in the 1-year period.
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(Disclaimer: The stock investment advice given here is given by the brokerage house. These are not the views of Zee Business. Consult your advisor before investing.)
Defence index's sharp surge
The Nifty India Defence Index has registered phenomenal growth in the last 1 year thanks recent surge due to Operation Sindoor. Due to the central government's excessive focus on the Make in India campaign, the Nifty India Defence Index has jumped by over 40 per cent in the 1-year period.
Nifty 50 benchmark vs Nifty India Defence Index
The Nifty 50 benchmarks, meanwhile, has jumped by 7.91 per cent in the same time frame. The Nifty India Defence Index has registered a growth of 30 per cent. Just in last 3 months, the defence index has surged over 57 per cent.
ICICI Direct defence stock picks
Amid such a scenario, brokerage ICICI Direct has picked 4 defence stocks to buy: HAL, BEL, Midhani, and Astra Microwave.
BSE Sensex and Nifty 50 indices today
Even as defence stocks have been rising fast, headline indices- BSE Sensex and Nifty 50- have bee trading in positive territory. The BSE Sensex is up by 304.06 points at 82,493.05. On the other hand, Nifty 50 was also up by 88.70 points at 25,091.75.
Defence stocks to buy
According to a report by brokerage firm ICICI Direct, the government is planning an emergency purchase of Rs 40,000 crore defence equipment. The target is to increase defence spending to 2.5 per cent of India's GDP by FY30.
Brokerage report
The brokerage says that although valuations are high (average P/E 48x FY27E), value is still visible in select defence stocks.
4 defence stocks to invest in
ICICI Direct has picked a total of 4 defence stocks for investors, including 3 defense PSU stocks. These include Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Midhani and Astra Microwave.
Bharat Electronics (BEL) share price target
The brokerage has a 'buy' recommendation on the defence PSU stock, Bharat Electronics Limited (BEL). The current price of the largecap defence company's stock is Rs 390.70 and the target price has been set at Rs 430, which is 10 per cent higher.
HAL share price target
The brokerage has a 'buy' call on defence PSU stock, Hindustan Aeronautics Limited (HAL).
HAL share price target
The defence largecap company's stock at close on Friday was at Rs 4,987.30 and the target price is set at Rs 6,100, which is an upside of more than 22 per cent.
Midhani share Price Target
ICICI Direct has given a 'buy' call on the government defence company Mishra Dhatu Nigam Limited (Midhani). The midcap aerospace and defense company's stock closed trading on Friday at Rs 425.25, while the share price target is Rs 530, which is nearly 25 per cent higher.
Astra Microwave share price target
The brokerage has given a 'buy' recommendation for the midcap aerospace and defence company, Astra Microwave Products. Its stock closed trading on Friday at Rs 1,132.55. The company has given a target price of Rs 1,270, which is more than 12 per cent.