Goldman Sachs backs Indian private defense firms amid rising localisation

Bharat Electronics

03/10/2025 10:59

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** Goldman Sachs initiates coverage on eight Indian defense stocks helped by a six-fold rise in domestic defense spending, scope for indigenization and export expansion

** Notes, despite India being a top defense spender and importer, investor attention remains skewed toward public-sector firms, even as private-sector players offer stronger growth and deeper exposure to advanced technologies

** Azad Engineering ("Buy", PT: 2,055 rupees) climbs the most to 8%; to deliver stronger EPS growth than global peers, with improving RoE and sustained momentum through FY33 - GS

** Broker's top picks Solar Industries SLIN.NS and PTC Industries PCIN.NS up 3.5% and 4%, respectively

** SLIN has a unique moat in high energetic materials, PCIN is establishing itself as a leading aerospace grade titanium and superalloy player - GS

** Brokerage initiates "Buy" at Astra Microwave ASTM.NS, Data Patterns DATP.NS and Bharat Electronics BAJE.NS, which are up 4%, 5.9% and 1.1%, respectively

** Hindustan Aeronautics HIAE.NS up 1.34% after being assigned "Neutral" and Bharat Dynamics BARA.NS gains 0.9% after being rated "sell"

Goldman Sachs start coverage of India's aerospace, defence manufacturers https://reut.rs/46BRoYY

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com))