As the world welcomes 2025, brokerages and market defenders remain positive on stocks amid global political concerns as they expect a further rally in some sectors due to strong order flows and government focus, even Only a few stocks have high valuations.
The NSE India Defense Index has fallen 22 per cent from its July 2024 high, but experts believe India’s defense story has not waned. He has a positive outlook, although he also cautions that some stocks offer an important opportunity for investors after recent declines.
Anand Rathi Shares & Stock Brokers says the approval of AoNs totaling Rs 218 billion in 5 proposals through DAC is a positive growth after a significant slowdown in domestic orders.
Ajit Mishra, SVP Research, Religare Broking, says in the defense sector, Hindustan Aeronautics Ltd and Mazagon Dock Shipbuilders emerge as attractive options for long-term investors, supported by their strong infrastructure and growth potential.
Hindustan Aeronautics and Mazagon Dock Shipbuilders both exhibit clear growth drivers as well as maintain reasonable valuations compared to their peers, making them attractive choices for investors looking for value in the defense sector. The Indian defense sector has delivered several multibaggers in the last 3 years, with stocks rising 3-4x to 8-10x between September 2022 and July 2024, before falling from highs in July 2024.
Surjit Singh Arora, Portfolio Manager, PGIM India AMC, says that there has been an increase in orders in the defense sector, as can be seen from the order flow of defense companies. In our assessment, valuations have outperformed fundamentals. We will remain vigilant in this area.
NSE’s defense sector barometer has gained nearly 55 per cent in the last one year, with stocks like Mazagon Dock, Paras Defence, DCX India, Zen Technologies, Astra Micro and others giving multibagger returns to investors. However, some stocks like MTAR Technologies, Cochin Shipyard and Bharat Dynamics have failed to repeat their previous records.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.