Defence stocks are in the spotlight today after the Defence Acquisition Council (DAC) approved new procurement proposals worth Rs 79,000 crore.
The move is set to benefit several listed defence companies including Bharat to Cochin Shipyard.
Let’s take a look at the list of defence sector stocks that are in focus following the latest development and other key details –
Defence stocks in focus
Defence-related stocks are to stay active in today’s trade following the announcement. Among the key gainers likely to benefit are –
Bharat Electronics (BEL) – a key player in radar, communication, and electronic warfare systems.
Bharat Dynamics (BDL) – manufacturer of missile systems, including the Nag and Akash series.
Mazagon Dock Shipbuilders – a major naval ship and submarine builder.
Garden Reach Shipbuilders & Engineers (GRSE) – known for warships and patrol vessels.
Cochin Shipyard – India’s largest shipbuilding and maintenance facility.
Astra Microwave Products – supplier of radar and satellite communication systems.
Data Patterns – specialises in electronic systems for defence applications.
BHEL and Larsen & Toubro (L&T) – expected to play key roles in manufacturing components and heavy machinery.
Big boost for defence modernisation
The fresh approvals cover a wide range of systems and equipment for the Army, Navy, and Air Force. The focus includes from missile systems to warships and advanced sensors as well as promoting local production under the government’s Aatmanirbhar Bharat vision.
For the Indian Army, the green signal has been given for the Nag Missile System (Tracked) Mk-II, a key anti-tank weapon, along with Ground-Based Mobile ELINT Systems for intelligence gathering and High Mobility Vehicles to improve logistics.
The Indian Navy will also see fresh orders. This includes Landing Platform Docks (LPDs), Advanced Lightweight Torpedoes, 30mm Naval Surface Guns, and Electro-Optical Infrared Tracking Systems.
Meanwhile, the Indian Air Force has received approval for new Long-Range Target Saturation and Destruction Systems (CLRTS/DS), designed for autonomous operations including detection, targeting, and precision strikes.
Focus on indigenisation
The latest DAC approvals are part of India’s ongoing efforts to reduce dependence on foreign defence suppliers.
Furthermore, many of the proposed systems such as the torpedoes and tracking systems, have been developed domestically by the Defence Research and Development Organisation (DRDO).
Nuvama on Defence sector
Nuvama’s recent report on India’s defence sector highlighted that the sector “is in a high-growth phase, supported by strong Rs 10 trillion defence PSU pipeline, likely higher budget allocation, particularly towards Air Force and Navy and an accelerated indigenisation push.” According to the report, the Defence Ministry’s new 15-year roadmap further reinforces this outlook, outlining ambitions for nuclear-powered warships, hypersonic missiles, stealth UCAVs, directed-energy and enhanced AI/space-warfare capabilities.