Antique Stock Broking remains optimistic about the Indian defence sector despite a 21% correction in the NSE Defence Index from its July 2024 peak. The brokerage believes the sector’s growth story remains intact, with improved earnings visibility and attractive valuations presenting a meaningful opportunity for investors to accumulate defence stocks.
Key Highlights:
- Defence Sector Outlook:
- Antique notes that the correction in the sector does not reflect any fundamental weakness; instead, the long-term outlook has strengthened.
- The defence industry’s order pipeline and government focus on indigenization continue to offer significant earnings visibility.
- Valuation and Opportunity:
- Valuations in the defence sector, given the robust earnings trajectory, are considered reasonable.
- The recent correction provides investors a favorable entry point to capitalize on the sector’s growth potential.
- Top Stock Picks:
Antique’s preferred stocks in the defence space include:- Hindustan Aeronautics Limited (HAL)
- Bharat Electronics Limited (BEL)
- Bharat Dynamics Limited (BDL)
- Mazagon Dock Shipbuilders
- PTC Industries
Antique remains bullish on the defence sector, driven by government support, rising defence expenditure, and improved earnings prospects. The recent market correction is seen as an opportunity for long-term investors to build positions in quality defence stocks with strong fundamentals.
Disclaimer: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.
