HAL, BEL, Bharat Dynamics among defence PSU stocks as brokerage picks 4 scrips
Defence PSU Stocks To Buy: In Tuesday's session, the benchmark Sensex closed at 78,472.87 while the Nifty 50 index ended at 23,727.65. Amid this, Elara Capital has come up with a strong report on the defence sector, predicting significant order inflows in Q4, making it a prime time to focus on defence stocks.
According to Elara Capital, a major portion of the defence capital expenditure (capex) for FY25 is still pending and is expected to be completed in Q4. With a robust demand outlook for the next 2-3 years, Elara Capital has identified Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, and Garden Reach Shipbuilders as top picks for investors. Know targets:
Defence PSU Stocks to Buy in 2025
The report highlights that over the past three years, AON (Approval of Necessity) worth Rs 8.3 lakh crore has been issued, compared to just Rs 5.4 lakh crore in the ten years from FY13-22. This surge suggests that order inflows are expected to remain strong over the next 2-3 years.
Defence PSU Stocks to Buy in 2025
The defence sector is undergoing significant indigenisation, with imports steadily decreasing. Additionally, a new avenue for exports is opening up for domestic defence companies, further contributing to their expected healthy growth.
Hindustan Aeronautics Share Price Target
Elara Capital has given Hindustan Aeronautics a "BUY" rating with a target price of Rs 5,465. Currently, the stock is trading around Rs 4,250, implying a potential upside of 28-30 per cent.
Hindustan Aeronautics Stock Performance
The 52-week high for the stock is Rs 5,675, and the low is Rs 2,701. The stock has delivered a 50% return so far this year.
Bharat Electronics Share Price Target
Bharat Electronics has also received a "BUY" rating, with a target of Rs 345. The stock is currently priced at Rs 295, offering a potential gain of 15-16 per cent.
Bharat Electronics Stock Performance
The 52-week high is Rs 340, while the low is Rs 171. The stock has posted a remarkable 60 per cent return this year.
Bharat Dynamics Share Price Target
Elara Capital has downgraded Bharat Dynamics to an "Accumulate" rating but raised its target by 6 per cent to Rs 1,300. The brokerage noted that over the last three months, the stock has outperformed the Nifty index by 18 per cent.
Bharat Dynamics Stock Performance
Currently, the stock is trading around Rs 1,210, with a 52-week high of Rs 1,795 and a low of Rs 776. The stock has given a 40 per cent return this year but has corrected by 28-30 per cent from its peak.
Garden Reach Shipbuilders Share Price Target
Elara has increased the target price for Garden Reach Shipbuilders by 11 per cent to Rs 1,660 and maintained an "Accumulate" rating.
Garden Reach Shipbuilders Stock Performance
The stock is currently priced at Rs 1,550, with a 52-week high of Rs 2,835 and a low of Rs 674. So far this year, the stock has delivered an impressive return of 80 per cent. Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.