In Monday’s session, Defence stocks rallied up to 5% following the approval of the new Defence Procurement Manual (DPM) 2025 by Defence Minister Rajnath Singh. The new Defence Procurement Manual (DPM) 2025, aimed at speeding up the revenue procurement process for the Armed Forces.
The Defence Procurement Manual (DPM) 2025 lays down the guiding principles and provisions for all revenue procurements in the Defence Ministry, valued at approximately ₹1 lakh crore for the current fiscal, an official readout said. This new framework is made to make buying defence equipment and services easier, faster, and more efficient, while making sure the process meets the needs of modern military challenges.
The manual also emphasises boosting domestic participation in defence manufacturing, which supports the government’s broader ‘Make in India’ initiative. Officials believe that these changes will enhance operational readiness by enabling faster decision-making and ensuring the timely availability of critical resources.
Nifty India Defence index reflected this positive sentiment by rising 0.3% in today’s session and 4.4% in the previous session and maintaining steady growth of nearly 3% over the past month. Overall, the new procurement manual is expected to accelerate defence sector growth and support India’s strategic self-reliance goals.
Here is the List of stocks to look out for
Cochin Shipyard Ltd
Cochin Shipyard is one of India’s leading shipbuilding and ship repair companies. It builds and repairs ships for both domestic and international clients, including the Indian Navy and Coast Guard. The company is also involved in building technologically advanced vessels such as aircraft carriers.
With a market capitalization of Rs. 47,028.32 crores on Monday, the shares of Cochin Shipyard Ltd jumped upto 4.7 percent, making a high of Rs. 1828.90 compared to its previous close of Rs. 1746.20.
Paras Defence and Space Technologies Ltd
Paras Defence is focused on defence and space engineering solutions. It designs, develops, and manufactures a wide range of defence electronics, electro-optics, and heavy engineering systems for use in defence and space applications. The company also works on projects for DRDO and ISRO.
With a market capitalization of Rs. 5,750.31 crores on Monday, the shares of Paras Defence and Space Technologies Ltd jumped upto 3.6 percent, making a high of Rs. 717.35 compared to its previous close of Rs. 691.90.
Cyient DLM Ltd
Cyient DLM (Design Led Manufacturing) provides electronic manufacturing solutions, particularly for high-reliability industries such as aerospace, defence, medical, and industrial. The company offers design, manufacturing, and after-market support for mission-critical systems.
With a market capitalization of Rs. 3,685.29 crores on Monday, the shares of Cyient DLM Ltd jumped upto 3.02 percent, making a high of Rs. 469.00 compared to its previous close of Rs. 455.25.
Hindustan Aeronautics Ltd (HAL)
HAL is India’s largest aerospace and defence company, engaged in the design, manufacture, and maintenance of aircraft, helicopters, avionics, and related systems. It is a key supplier to the Indian Armed Forces and also collaborates with global aerospace firms. It plays a major role in India’s self-reliance in defence aviation.
With a market capitalization of Rs. 3,20,754.52 crores on Monday, the shares of Hindustan Aeronautics Ltd (HAL) jumped upto 2.1 percent, making a high of Rs. 4845.00 compared to its previous close of Rs. 4744.70.
Astra Microwave Products Ltd
Astra Microwave specialises in RF and microwave components and systems used in defence, space, and telecommunications. The company supports various missile, radar, and electronic warfare programs of the Indian defence sector. It has in-house R&D and manufacturing capabilities and partners with key defence agencies like DRDO and ISRO.
With a market capitalization of Rs. 10,522.76 crores on Monday, the shares of Astra Microwave Products Ltd jumped upto 4.7 percent, making a high of Rs. 1138.00 compared to its previous close of Rs. 1086.20.
Along with it, Defence stocks like GRSE (Garden Reach Shipbuilders), Bharat Dynamics, MTAR Technologies, BEML, BEL and others are expected to benefit from the newly approved Defence Procurement Manual (DPM) 2025. The revised manual simplifies and speeds up the defence procurement process, boosting domestic participation and enabling faster decision-making, factors likely to drive growth and fresh orders for these companies.
Written by Sridhar J
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