If you want to invest in some defense stocks before the budget, then you can consider these 4 stocks. Brokerage firm Elara Securities has named these 4 stocks, so you can also trust them. The 4 stocks mentioned by brokerage firm Elara include HAL, Bharat Dynamics, Bharat Electronics and Garden Reach Shipbuilders.
According to the brokerage firm, there will be an increase in the orders received by defense companies in the last i.e. March quarter of the fiscal year FY25. Defense companies will get more orders because the time to spend the defense capital expenditure fixed by the government in the budget last year is only till March 2025. After that the new financial year will start.
Why can defense stocks rise?
The government has set a target to spend 75% of the Defense Capex on domestic companies. Along with this, the government has also increased the budget of Navy by 18 percent as compared to the last financial year.
Hindustan Aeronautics was in the news in the last few days due to problems with engine supply from General Electric. However, brokerage firm Elara believes that these difficulties will end soon. Because General Electric will start supplying these engines in March.
Elara believes that Hindustan Aeronautics’ order flow will increase by Rs 1.2 lakh crore during FY 2026.
Elara Securities has advised to buy shares of Hindustan Aeronautics and Bharat Electronics. Whereas it has given ‘Accumulate’ rating for Bharat Dynamics and Garden Reach Shipbuilders.
Shares of both HAL and BEL had fallen by more than 20% from this year’s high, but they saw recovery again in November.
On the other hand, the share prices of Bharat Dynamics and Garden Reach had fallen by almost 50% from the peak. However, recently recovery has been seen in these too.