InvestorQ : Are you positive on defence stocks like HAL, BEL, Astra Micro and Walchandnagar Industries after the sharp defence rally in the last week?
Khushi Patel made post

Are you positive on defence stocks like HAL, BEL, Astra Micro and Walchandnagar Industries after the sharp defence rally in the last week?

Answer
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Dhwani Mehta answered.
1 month ago


You are right that in the last 10 days, defence stocks have rallied sharply. The actual trigger for the rally came after the defence minister announced that 101 defence products would be embargoed for imports. They would only be allowed for domestic production.

That opens up a massive Rs.4 trillion opportunity for defence companies in India. That explains why stocks like Hindustan Aeronautics, BEL, Astra Micro and Walchandnagar Industries rallied sharply in the last couple of weeks. It will be a leg up for captive markets.

This could be a serious boost for Make in India. The 101 items identified by the government is with approval of the defence establishment so the buy-in is likely to be a lot higher. Defence capacities are also ramped up in recent years to get economies of scale.