As India prepares to unveil its Union Budget for 2024-25, investors are closely monitoring the defence sector for potential growth opportunities. With the government’s focus on initiatives like ‘Make in India’ and increased defence spending, this sector is poised for significant expansion. This comprehensive guide highlights the top defence sector stocks to watch across various domains.
Budget Session 2024 Announcement
President Murmu has approved the Budget Session from July 22 to August 12, 2024. The Union Budget 2024-25 will be presented on July 23 in the Lok Sabha, potentially impacting defence sector policies and allocations.
Top Defence Sector Stocks to Watch
This comprehensive guide highlights the top defence sector stocks to watch across various domains as we approach this crucial budget announcement.
Major Stock Players in the Indian Defence Sector
| Sector | PSU | Private |
|---|---|---|
| Army | BEML Ltd, Mishra Dhatu Nigam Ltd | Bharat Forge Ltd |
| Air Force & Aerospace | Bharat Dynamics Ltd, Hindustan Aeronautics Ltd | Apollo Micro Systems Ltd, AXISCADES Technologies Ltd, Centum Electronics Ltd, Dynamatic Technologies Ltd, MTAR Technologies Ltd, Rossell India Ltd, Sika Interplant Systems Ltd, Taneja Aerospace & Aviation Ltd |
| Navy | Garden Reach Shipbuilders Ltd, Mazagon Dock Shipbuilders Ltd, Cochin Shipyard Ltd | – |
| Defence (Diversified) | Bharat Electronics Ltd, Bharat Heavy Electricals Ltd | Centum Electronics Ltd, Data Patterns (India) Ltd, Paras Defence and Space Tech Ltd, Zen Technologies Ltd |
Minor Stock Players in the Indian Defence Sector
| Sector | Companies |
|---|---|
| Drones Related | Ideaforge Technology Ltd, Zen Technologies Ltd |
| Batteries | HBL Power Systems Ltd, High Energy Batteries Ltd |
| Automobiles | Ashok Leyland Ltd, Tata Motors Ltd, Mahindra & Mahindra Ltd, Ramkrishna Forgings Ltd, Motherson International Ltd, Pricol Ltd, Sansera Engineering Ltd |
| Technology | Cyient Ltd, Tech Mahindra Ltd, Micro Technologies Ltd, IRIS Business Services Ltd |
| Telecommunications | Avantel Ltd, Astra Microwave Products Ltd, Frog Cellsat Ltd |
| Capital Goods | Cummins India Ltd, DCX Systems Ltd, Dynamatic Technologies Ltd, Lakshmi Machine Works Ltd, Fine Line Circuits Ltd, Kirloskar Pneumatic Company Ltd, Triveni Turbine Ltd |
| Metal Components | Hindalco Industries Ltd, PTC Industries Ltd, Steelcast Ltd |
| Others | Larsen & Toubro Ltd, Reliance Naval & Engineering Ltd, Krishna Defence & Allied Industries Ltd, NIBE Ltd, Walchandnagar Industries Ltd |
| Proxy | Solar Industries India Ltd, Premier Explosives Ltd |
List credit: Jagadeesh Chowdary & Dr Vismaya VR
Factors Driving Growth in the Defence Sector
- Government’s focus on self-reliance and indigenous production
- Increasing geopolitical tensions driving demand for defence equipment
- Modernization of armed forces
- ‘Make in India’ initiative boosting domestic manufacturing
Investor Considerations
- Conduct thorough research on individual company financials
- Analyze order books and growth potential
- Stay informed about government policies and budget allocations
- Monitor geopolitical developments affecting defence demand
As the Union Budget 2024-25 approaches, the Indian defence sector presents exciting opportunities for investors. With the government’s commitment to modernizing the armed forces and promoting self-reliance, defence sector stocks are well-positioned for growth. However, investors should exercise due diligence and stay informed about market dynamics before making investment decisions.
Disclaimer:
The information provided in this article is for general informational purposes only and should not be considered as investment advice. Investing in stocks carries risks, and the value of investments may fluctuate. Past performance is not indicative of future results. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses incurred based on the information presented in this article.
