Defence stocks set to rally on export hopes amid rising India-Pakistan tensions: Ashika Equity

Indian defence stocks are poised to payment from a surge successful some home and planetary demand, brokerage Ashika Institutional Equity said, citing a favourable backdrop of heightened geopolitical activity, expanding bid books, and increasing export imaginable pursuing India's assertive show of subject capabilities successful the ongoing struggle with Pakistan.

The brokerage is bullish connected prime home manufacturers, including Data Patterns, Bharat Electronics (BEL), Mazagon Dock, Garden Reach Shipbuilders, Zen Technologies, Paras Defence, and Hindustan Aeronautics (HAL), which it says are well-positioned to payment from an expanding bid book.

The twelvemonth 2025 is shaping up to beryllium a twelvemonth of reforms for the defence sector, Ashika Equities said, pointing to India’s demonstrated spot successful next-generation stand-off warfare and the integration of precocious systems specified arsenic AI and robotics. The brokerage said some nationalist assemblage undertakings and backstage manufacturers basal to gain—PSUs from rising home procurement, and backstage players from expanding planetary interest.

India’s caller subject actions, including precision strikes connected panic camps successful Pakistan and Pakistan-occupied Kashmir, person not lone showcased indigenous systems similar the Akash rocket level and the INS Vikrant craft bearer but besides exposed vulnerabilities successful Chinese-supplied hardware utilized by Pakistan.

“Operation Sindoor delivered a resounding stroke to the credibility of Pakistan’s Chinese-supplied aerial defence systems and, by extension, to Beijing’s claims of subject superiority,” said Krishna Doshi, Defence Analyst astatine Ashika Institutional Equity, adding that this could unlock caller export opportunities for Indian companies.

Defence Minister Rajnath Singh, successful a caller briefing, reiterated India’s export people of Rs 500 cardinal by FY29—more than treble the existent Rs 240 billion—with the ambition of becoming the world’s apical defence exporter by 2047.

Defence stocks surged connected Friday, with Paras Defence starring the gains with a 7.5% leap to an intraday precocious of Rs 1,463, followed by BEL, which roseate 4.9%, and HAL, which climbed 3.6%. Bharat Dynamics and Bharat Forge gained 3.5% and 5.6%, respectively.

The rally comes amid reports that the Modi authorities has summoned cardinal defence manufacturers to Delhi adjacent week to sermon ramping up production. Bharat Forge Chairman Baba Kalyani confirmed the gathering successful comments to CNBC TV18, though declined to elaborate.

The banal question tracks developments successful the portion pursuing India's strikes earlier this week that eliminated 9 panic camps. In retaliation, Pakistan launched loitering munitions and resumed rocket attacks crossed the Line of Control, each of which were intercepted by India’s aerial defence systems. Explosions were reported arsenic drones were neutralised crossed Jammu and Kashmir, portion blackouts were enforced successful aggregate districts, including Bikaner and Jalandhar.

Also work | Defence stocks rally up to 4% arsenic India-Pakistan tensions flare

Ashika Equities besides pointed to planetary defence spending arsenic a semipermanent affirmative for Indian exporters. NATO’s planned EUR 800 cardinal outlay implicit the adjacent 3–4 years and the caller Rs 630 cardinal Rafale-M woody betwixt India and France—under which section firms volition manufacture cardinal components—underscore the accidental for Indian players, peculiarly those successful the backstage assemblage which already relationship for 60–65% of defence exports.

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