Defence sector stocks jumped on Wednesday after the government approved the acquisition of Rs 1.4 lakh crore. Shares of major defence companies like BEML and Mazagon Dock have registered a rise of up to 3%.
Let us inform you the defence Acquisition Council (DAC) has endorsed proposals worth the sum of 1.4 lakh crore rupees to improve the capability of the Indian Armed Forces.
Shares Up 5 Percent
The share of government-owned Defence company BEML Limited opened at Rs 3,839.95 on Wednesday. About an hour later i.e. around 10:23 am, it jumped about 7 percent to reach Rs 4,109.
At the same time, the share of Passer Defence was also trading at 1,275 with a gain of more than 2 percent.
Apart from this, the share of Defence PSU Mazagon Dock Shipbuilders Limited has registered a gain of more than 5 percent for the second consecutive day. On Wednesday, the share of Mazagon Dock Shipbuilders was trading up nearly 6 % at Rs 4,776.
Brokerage Gave A Buy Rating
A brokerage firm said, “This is a great opportunity for Indian Defence companies such as HAL, BEL, Mazagon Dock Shipbuilders, GRSE, and other Defence firms.
We therefore maintain a “buy” rating for the PSUs in our Defence coverage.”
It has set a price target of 6,145 rupees on Hindustan Aeronautics Ltd and the price is 381 for BEL, Rs 1,579 for BDL, Rs 5,486 for Mazagon Dock, and Rs 2,092 for GRSE.
The Companies Are Expected To Generate Enormous Profits
Let us tell you that companies like Bharat Forge, Mahindra Defence, and Tata Advanced Systems are likely to benefit heavily from the purchase of fighter jets by DAC.
BEL is the focus of radars for air defence and fire control as HAL is regarded as one of the top choices for Dornier-228 aircraft.
Quick Fact
BEML
| Company name | BEML |
|---|---|
| Share rise | 7% |
| Opening price | ₹3,840 |
| Current price | ₹4,109 |
| Type | Defence |
| Ownership | Government |
Mazagon Dock Shipbuilders
| Company name | Mazagon Dock Shipbuilders |
|---|---|
| Rise | More than 5% |
| Day jump | Nearly 6% |
| Share price | ₹4,776 |
| Target Price | Rs 5,486 |
Hindustan Aeronautics
| Company name | Hindustan Aeronautics |
|---|---|
| Possible target price | ₹6,145 |
| Aircraft focus | Dornier-228 |
Bharat Electronics (BEL)
| Company name | BEL |
|---|---|
| Possible target price | ₹381 |
| Focus area | Radars for air defense, fire control |
Bharat Dynamics (BDL)
| Company name | BDL |
|---|---|
| Possible target price | ₹1,579 |
Garden Reach Shipbuilders & Engineers (GRSE)
| Company name | GRSE |
|---|---|
| Possible target price | ₹2,092 |
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