In a major boost to the preparedness of the armed forces, the Defence Ministry approved the procurement of military equipment and weapons worth ₹ 84,328 crores. This includes light tanks, anti-ship missiles, long-range guided bombs and next-generation offshore patrol vessels.
The Defence Acquisition Council (DAC) headed by Defence Minister Rajnath Singh accorded approval for 24 capital acquisition proposals which include six for the Indian Army, six for Indian Air Force, 10 for the Indian Navy and two for the Indian Coast Guard.
Defence stocks were trading in the green. By 11:30 AM on Monday, Mazagon Dock Shipbuilders gained 7.08%, Bharat Dynamics climbed 7.04%, Garden Reach Shipbuilders & Engineers rose 6.61%, Bharat Electronics quoted 3.4% higher, Bharat Forge surged 3.31% and Solar Industries India zoomed 1.45%.
The company builds and repairs ships, submarines and other vessels, primarily for the defence sector in India. Its shares were trading at ₹ 746.45 apiece at 11:52 AM and ICICI Direct had given a target of ₹ 1025.00 on its shares earlier this month. This implies an upside of 37.31% as compared to its share price.
The company manufactures forged and machined components for the auto and industry sector. It makes critical components for defence and aerospace. Its shares were trading at ₹ 871.05 apiece at 12:09 PM. HDFC Securities had suggested a target price of ₹ 1,000 on the shares of the company. This indicates an upside of 14.80% as compared to its share price.
Bharat Electronics is an Indian state-owned aerospace and defence company that manufactures advanced electronic products for ground and aerospace applications. Its shares were trading at ₹ 99.15 apiece at 12:17 PM. ICICI Securities has a buy call on its shares with a price target of ₹ 125, hinting at an upside of 26.07%.
Solar Industries manufactures propellants for missiles and rockets, warheads and warhead explosives. Its shares were trading at ₹ 4090.70 apiece at 12:38 PM. ICICI Securities has a buy call on the shares with a target price of ₹ 4760.00. This indicates an upside of 16.36%.
Written by Simran Bafna
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