The Defence Acquisition Council (DAC) approved major procurement projects worth Rs 1.44 lakh crore for the Armed Forces and also granted acceptance of Necessity (AoN) for 10 capital acquisition proposals. DAC is one of the highest authorities for approving major capital purchases from the armed forces.
Additionally, these approved projects include Future Ready Combat Vehicles (FRCVs) and Air Defence Fire Control Radars for the Army, along with Dornier 228 aircraft, Next Generation Fast Patrol Vessels, and Offshore Patrol Vessels for the Indian Coast Guard.
According to a ministry statement, the long-awaited purchase of Future Ready Combat Vehicles (FRCVs) would modernize the Indian Army’s tank fleet. These new Main Battle Tanks will offer increased mobility, all-terrain capabilities, multi-layered protection, precise shooting, destructive firepower, and real-time situational awareness.
The Defence Ministry further stated that the Air Defence Fire Control Radars will improve aerial target recognition and tracking, resulting in more precise firing solutions. The application has been authorized for the Forward Repair Team (Tracked), which has sufficient cross-country mobility to perform in situ repairs during mechanized activities.
Here are defence stocks that can benefit from Rs 1.44 lakh crore outlay for procurement projects;
Mazagon Dock Shipbuilders Ltd
Mazagon Dock Shipbuilders Limited is engaged in building and repairing of ships, submarines, various types of vessels, and related engineering products. The Company is into the construction of warships and submarines. It is also engaged in the production of defence equipment.
With a market capitalization of Rs 95,097.84 crore, the shares were trading at Rs 4,716.15 crore, increasing around 6 percent as compared to the previous closing price.
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Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders & Engineers Limited is primarily engaged in shipbuilding activities for the Indian Navy and the Indian Coast Guard. It is also engaged in the construction of commercial vessels and engineering & engine production activities.
With a market capitalization of Rs 22,536.39 crore, the shares were trading at Rs 1,967.35 crore, increasing around 3 percent as compared to the previous closing price.
Hindustan Aeronautics Ltd
Hindustan Aeronautics Limited is an India-based company, which is engaged in the design, development, manufacture, repair, overhaul, upgrade, and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories, and aerospace structures.
With a market capitalization of Rs 3.27 lakh crore, the shares were trading at Rs 4,898.70 crore, increasing around 2 percent as compared to the previous closing price.
The company received approval for Acceptance of Necessity (AON) for procurement of Dornier-228 Aircraft from the Defence Acquisition Council (DAC).
Bharat Dynamics Ltd
Bharat Dynamics Limited is engaged in the manufacturing of missiles and allied defense equipment. The Company has facilities for manufacturing and supplying of guided missiles, underwater weapons, air-borne products, and allied defense equipment for the Indian armed forces.
With a market capitalization of Rs 48,972.75 crore, the shares were trading at Rs 1,336.00 crore, increasing around 1.16 percent as compared to the previous closing price.
Bharat Electronics Ltd
Bharat Electronics Limited manufactures and supplies electronic equipment and systems for the defense sector as well as for non-defense markets. Its defense products include navigation systems, defense communication products, land-based radars, naval systems, electronic warfare systems, avionics, etc.
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With a market capitalization of Rs 2.17 lakh crore, the shares were trading at Rs 298.00 crore, increasing around 0.27 percent as compared to the previous closing price.
Written by:- Abhishek Singh
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