Brokerage houses and experts say that domestic companies working in the defense sector can benefit tremendously from the budget. The shares of these companies can show strong growth in the coming days.
Best Defense Stocks to Buy: After the budget, a mixed reaction is being seen in the stocks related to the defense sector. Hindustan Aeronautics, Mazagon Shipyard and Mishra Dhatu Nigam are bullish, while some stocks are under pressure. However, in the budget 2022, there has been an increase of 47 thousand crore rupees in the defense budget. Make in India has the highest focus in the defense budget. The special thing is that 68 percent of the total defense procurement budget will be spent on buying from the domestic market. At the same time, research in the defense sector is also going on. Brokerage houses and experts say that domestic companies working in the defense sector can benefit tremendously from the budget. The shares of these companies can show strong growth in the coming days.
Big Booster for Domestic Companies
Brokerage house ICICI Securities says that Defense Capital has been increased by 13 percent in the budget. At the same time, there has been an increase of 68 percent in the Indigenous Capital budget. Defense capital budget for domestic procurement has increased by 30 per cent year-on-year. Higher domestic capital allocation will improve order inflow visibility and working capital for the sector. This is a big booster for domestic companies working in the defense sector. This will benefit PSU defense companies such as Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), Bharat electronics (BEL).
How to make strategy in which stock
The brokerage at Bharat Electronics has given BUY advice and has given a target of Rs 242 for the stock. At the same time, in Hindustan Aeronautics, the brokerage has given BUY advice and has given a target of Rs 2618 for the stock. In Bharat Dynamics also, the brokerage has given BUY advice and has given a target of Rs 600 for the stock. In Mishra Dhatu Nigam, the brokerage has also advised BUY and has given a target of Rs 274 for the stock. Whereas Mazagon Shipyard has recommended ADD and the target has been kept at Rs 330.
The brokerage in Solar Industries has given HOLD advice and has set a target of Rs 2365 for the stock. The brokerage at Garden Reach has given HOLD advice and has set a target of Rs 255 for the stock. The brokerage in Astra Microwave has given HOLD advice and has kept the target of Rs 250 for the stock.
how was the defense budget
There has been an increase of 9.84 percent in the defense budget for the year 2022-23 and it has increased from Rs 4.78 lakh crore to Rs 5.25 lakh crore. To make the defense sector self-reliant, 68 percent of the capital budget will be allocated for the domestic industry. With this, maximum production can be done in the country itself. At the same time, the dependence on the import of defense equipment will be less. Research and development has now been made open to the private sector and startups. Out of the budget released for this, 25 percent will be given to the private sector.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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