Defence stocks rallied on Tuesday after the Defence Acquisition Council cleared proposals worth ₹2.12 lakh crore. Apollo Micro Systems and Data Patterns led the gains, rising over 8 per cent. The defence index climbed close to 3 per cent. However, Aequs bucked the trend, slumping nearly 19 per cent after results.
Defence stocks rallied on Tuesday after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, cleared acquisition proposals worth ₹2.12 lakh crore for the armed forces.
Apollo Micro Systems and Data Patterns led the gains, rising over 8 per cent, while BEML, Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) also advanced. The defence index climbed close to 3 per cent to 8,907.90.
Paras Defence, Sigma Advanced Systems, Mishra Dhatu Nigam (MIDHANI) and Garden Reach Shipbuilders & Engineers (GRSE) also gained 3–5 per cent.
Aequs bucked the sectoral trend, slumping nearly 19 per cent after its second-quarter results.
The acquisition proposals cover multiple defence modernisation requirements, including tracked guns, helicopters, drones and ship decoys.
SBI Securities identified several listed defence companies that could potentially benefit from the proposed acquisitions, depending on procurement allocations, tender participation, competitive bidding and final vendor selection.
BEL could be a potential beneficiary of indigenous air defence, counter-drone and associated electronic systems. HAL has relevant exposure to the Light Multi Role Helicopter (LMRH) programme for the Army and Air Force, although the actual benefit will depend on the selected platform, procurement allocation and eventual contract awards.
BEML could benefit from requirements for high-mobility vehicles and specialised military mobility equipment, subject to its participation in relevant tenders and final vendor selection. Larsen & Toubro (L&T) could see opportunities linked to self-propelled artillery systems, counter-drone solutions and naval platforms.
Bharat Forge could benefit from artillery and land-defence modernisation, while Solar Industries could see opportunities from long-range kamikaze drone systems and other ammunition-related requirements. GRSE was also identified as a potential beneficiary of naval platform and shipbuilding requirements.
Electronics and drones
Data Patterns, for potential opportunities in defence electronics, surveillance, radar and air defence-related systems. Astra Microwave Products has relevant exposure to radar, radio frequency and microwave systems, as well as electronic warfare technologies that could support future surveillance and air defence programmes.
Zen Technologies could benefit from counter-unmanned aerial systems and anti-drone solutions, subject to procurement specifications, competitive bidding and final vendor selection.