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HomeSTOCKSGovernment Is Making Efforts To Promote Defence Sector; Buy These Two Stock...

Government Is Making Efforts To Promote Defence Sector; Buy These Two Stock For Huge Returns

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India Defence Sector: Due to the global geopolitical tensions, and the increasing focus on self-reliance, India’s defence sector has seen a significant increase in order volume. 

As a result, revenue for these companies has also increased. By improving its relations with other countries, the Indian government is working to increase defence exports.

India’s defence spending can double from 2023-24 up to 2029-30. In this situation, the price of shares in domestic defence companies may rise dramatically in the next few days.

Brokerage Is Bullish About These Stocks

A foreign brokerage firm, has recommended that investors buy shares in Hindustan Aeronautics Limited (HAL) due to the increase in defence spending and the focus on exports.

The brokerage firm is extremely positive about Bharat Electronics Limited. Brokerage advised that Hindustan Aeronautics be purchased for Rs 3900, which is currently trading for Rs 3589.

The brokerage firm has advised investors to purchase the shares, which are currently trading at Rs. 2739.

A target price of Rs. 3545 was given. The Brokerage advised that Bharat Electronics stock be purchased for Rs 260 as the current price is Rs 221.50.

India Has A Huge Opportunity

They stated in its report that domestic defence companies have a 100-120 billion dollar business opportunity in the coming 5-6 years. Industry growth can reach up to 13 percent per year.

According to the report India ranks third globally in terms of defence spending. India’s defence spending in 2022 will be only 10% of the total US expenditure.

Comparatively, China only had 27 percent. India is ranked second in the world for imports of defence equipment.

Indigenization may be the reason for India’s defence spending to grow by double digits, according to a report. Expert thinks that defence exports could grow by 21 percent annually in the next five to six years.

Disclaimer: The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. We are here to provide timely updates about the stock market and financial products to help you make better investment choices.

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