HSBC initiates coverage of Indian defence stocks

Mazagon Dock Shipbuilders

16/09/2026 05:34

** HSBC initiates coverage of India's defence stocks, betting on higher defence spending
** Brokerage estimates defence capital spending in fiscal 2037 to be 2.8 to 3.9 times higher than fiscal 2027
** Sees growth in India driven by higher capital spending, increased domestic manufacturing and increasing export growth
** "We expect order books to continue to expand and allow Indian defence companies to remain among the most profitable globally" - HSBC
** Initiaties coverage on stocks with the following rating: 
Rating
Stocks
Buy
Hindustan Aeronautics HIAE.NS and Bharat Electronics BAJE.NS 
Hold
Solar Industries SLIN.NS, Astra Microwave ASTM.NS, Data Patterns DATP.NS, Bharat Dynamics BARA.NS 
Reduce
Mazagon Dock Shipbuilders MAZG.NS 
** Shares of HIAE, SLIN, ASTM, DATP, BARA and MAZG down about 1% to 4% on Wednesday
** YTD Nifty Defence Index .NIFTYINDDEFENCE up 16.97% vs Nifty .NSEI down 11.08%, as per LSEG-compiled data

 (Reporting by Aishwarya Jain in Bengaluru)
 ((Aishwarya.Jain@thomsonreuters.com;))