Indian defence stocks rise as govt approves military asset purchases

Mazagon Dock Shipbuilders

04/09/2024 05:49

** Shares of defence stocks up; BEML's  BEML.NS  3.6% rise
is largest
    ** India's defence ministry approved purchases worth 1.45
trln rupees ($17.27 bln) of military equipment
    ** Nomura says BEML is among potential beneficiaries of the
key order for Future Ready Combat Vehicles; adds that HAL's
 HIAE.NS  aircraft order was in line with its expectation and
already factored into estimates
    ** Antique Stock Broking says state-run defence cos have
strong growth opportunity near-to-long term with the approval
    ** BEML set for best day since Aug. 7
    ** Shipbuilding stocks had risen on Tuesday on reports that
government will approve the defence projects
    ** Bharat Forge  BFRG.NS  only one in the pack that is down
    
 Company Name  RIC         Stock move  Analysts'
                                       avg
                                       rating*
 BEML           BEML.NS    3.6%        Buy
 Bharat         BARA.NS    0.7%        Buy
 Dynamics                              
 Bharat         BAJE.NS    0.3%        Buy
 Electronics                           
 Hindustan      HIAE.NS    0.3%        Buy
 Aeronautics                           
 Mazagon Dock   MAZG.NS    3%          Hold
 Shipbuilders                          
 Cochin         COCH.NS    2.1%        Hold
 Shipyard                              
 Garden Reach   GRSE.NS    2%          Sell
 Shipbuilders                          
 and                                   
 Engineers                             
 Bharat Forge   BFRG.NS    -0.3%       Hold
 * Data from LSEG

($1 = 83.9525 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))