Defence stocks, BHEL, Cochin Shipyard: Defence-linked stocks surged on Tuesday amid reports that the Defence Acquisition Council (DAC) is likely to approve emergency defence procurement worth Rs 75,000 crore this week. Key deals could include orders for Quick Reaction Surface-to-Air Missiles (QRSAM) and mine sweepers, with major public-sector beneficiaries including Bharat Electronics (BEL), Bharat Dynamics (BDL), Cochin Shipyard, and Mazagon Dock Shipbuilders.
According to a Zee Business exclusive, the DAC is expected to meet later this week to fast-track a new round of defence deals under the Ministry of Defence. The approval push follows Operation Sindoor and aligns with the government’s thrust on ‘Make in India’, defence self-reliance, and export-oriented manufacturing.
QRSAM missile order worth Rs 30,000 crore seen boosting BEL and BDL
A proposal to approve a Rs 30,000 crore procurement for QRSAM systems could directly benefit BEL and BDL. These quick-reaction missile systems are critical for India’s tactical air defence and form a key part of the country’s short-range protection strategy.
Rs 44,000 crore mine sweeper contracts may aid Cochin, Mazagon, Goa Shipyard
In the shipbuilding segment, DAC is expected to greenlight a Rs 44,000 crore order for 12 mine sweepers for the Indian Navy. The order is likely to go to Cochin Shipyard, Mazagon Dock, and Goa Shipyard, with all three PSUs expected to share execution responsibilities for delivering these advanced naval vessels.
From BEL to Cochin Shipyard to Mazagon Dock, defence stocks zoom on procurement buzz
The stock market reflected strong buying interest in defence counters:
1) Bharat Electronics surged nearly 3 per cent, hitting an all-time high of Rs 433
2) Bharat Dynamics rallied over 3 per cent, climbing past Rs 2,000
3) Cochin Shipyard gained nearly 1 per cent to Rs 2,080
4) Mazagon Dock Shipbuilders rose over 2.25 per cent, trading above Rs 3,320
Investors appear to be positioning for further upside as the government prioritises domestic defence capability.
India may see Rs 16 lakh crore in defence procurement by FY27
According to brokerage Antique Stock Broking, India’s defence procurement could reach Rs 16 lakh crore by FY27, with a strong bias toward domestic orders. The DAC has already cleared Rs 8.5 lakh crore worth of projects between FY23 and FY25.
Likely future contracts may include: Six P75I submarines, Three Kalvari-class submarines, P-17B stealth frigates, LCA MK-1A combat aircraft, ALH-LCH helicopters and new-generation combat electronics and naval systems
Analysts bullish on long-term defence stock performance
Market experts advise investors to retain quality defence PSUs in their long-term portfolios. With the Centre’s focus on indigenisation, capital expenditure, and strategic autonomy, companies such as BEL, BDL, Cochin Shipyard, and Mazagon Dock are expected to be prime beneficiaries of the defence investment cycle.
