Defence stocks to buy before Budget: Analysts suggest buying MTAR Tech and DCX Systems; check out targets
Sharad Avasthi of SMIFS Ltd has suggested buying shares of Mtar Technologies. The company is an equipment supplier for the defense sector, and nuclear, defense, and aerospace programs. It is a precision engineering, manufacturing, and integrator firm. It also has business in data centers and renewable energy space.
The Budget 2024 is all set to be presented on July 23. Before that, every investor is keeping an eye on stock market movement. Before the Budget, investors want to keep strong stocks in their portfolios as it may impact their share price movement.
'Budget My Pick' stocks
Keeping that in mind, analysts are suggesting stocks under 'Budget My Pick'. They have chosen two strong stocks for better returns in the next one year.
2 defence stocks to buy
These stocks include MTAR Tech and DCX Systems. Let's check targets and stop losses of these stocks.
MTAR Technologies
Sharad Avasthi of SMIFS Ltd has suggested buying shares of Mtar Technologies. The company is an equipment supplier for the defense sector, and nuclear, defense, and aerospace programs. It is a precision engineering, manufacturing, and integrator firm. It also has business in data centers and renewable energy space.
MTAR share price target
The analyst has given a target of Rs 2,400 for one year. MTAR Tech's shares closed at Rs 1,945 on Monday, July 15. This means the share can provide up to 23 per cent from its last closing price.
Buy DCS Systems
Dharmesh Kant of Cholamandalam Securities said that the budget will be an extension of the announcements made in the interim budget. The focus will be on defense and railway shares. In particular, there will be more focus on the defense sector. There is a buy opinion on DCX Systems. It is a small company and has a market cap of Rs 4,494 crore. It has been growing rapidly and receiving orders continuously.
Share price target of DCS Systems
It is estimated that their profitability will double in the coming two years. There is also a possibility of improvement in margins in some segments. The analyst has given a target of Rs 560. The stock closed at Rs 421.3 each on Monday, July 15. This means it can provide returns of up to 33 per cent from its last closing price.
The views/suggestions/advice expressed here in this article are solely by the brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.