Defence stocks surge up to 20% with Paras Defence, HAL, Garden Reach Shipbuilders, Mazagon Dock at record highs

Defence stocks surged, with Paras Defence and GRSE leading the rally. Paras Defence, GRSE, HAL hit record highs. Investor interest in the sector is high, driven by Defence Minister Rajnath Singh's plans to boost defence exports and domestic manufacturing under 'Make in India'.

Pranati Deva
First Published18 Jun 2024, 03:29 PM IST
Defence stocks surged, with Paras Defence and GRSE leading the rally.
Defence stocks surged, with Paras Defence and GRSE leading the rally.(Photo: AP)

Defence stocks surged by up to 20 percent in intra-day deals on Tuesday, building on double-digit gains from the previous week. Paras Defence and GRSE led the rally, reflecting heightened investor optimism.

Shares of Paras Defence were locked in the 20 percent upper circuit at their record high of 1,388.70 apiece following a block deal involving 1.8 percent of the company’s equity (3.29 lakh shares). Meanwhile, Garden Reach Shipbuilders surged almost 15 percent to its new high of 1,627.85. Both these stocks have given robust returns in June so far, jumping 51 percent and 32 percent, respectively.

Also Read | How the stock market boom has made investor dreams a reality

Furthermore, shares of Hindustan Aeronautics Limited (HAL), the manufacturer of Tejas, surged by 7 percent to reach an all-time high of 5,565.35 apiece. This rally was fueled by the Ministry of Defence issuing a request for a proposal to procure 156 Light Combat Helicopters from the PSU. The tender, valued at approximately 50,000 crore, marks the largest single order for helicopter acquisition awarded to an Indian company, underscoring HAL's significant role in the defence sector. The stock has added over 11 percent in the current month to date.

Also, Mazagon Dock rallied 8.8 percent to its record high of 4,219. It has also advanced almost 30 percent in June so far. Astra Microwave Products also hit a new peak of 1,059.75, jumping almost 10 percent in intra-day deals.

Meanwhile, other defence stocks also gained. Ideaforge Tech rallied 10 percent, Zen Tech surged over 8 percent, Bharat Dynamics rose 4.2 percent, and Bharat Electronics increased 3.7 percent.

Also Read | Som Distilleries and Breweries shares tank 16% amid child labour concerns

Defence stocks have been in focus with investor interest soaring following Defence Minister Rajnath Singh's ambitious plans to boost India's defence exports and strengthen domestic manufacturing under the 'Make in India' initiative. Singh's announcement, aimed at achieving annual defence exports of 50,000 crore and fast-tracking indigenous production, has sparked renewed optimism in the sector. His emphasis on scaling up defence capabilities aligns with India's broader strategic goals and underscores the government's commitment to self-reliance in defence. This proactive stance has not only bolstered market sentiment but also positioned defence-related stocks favorably for potential growth opportunities ahead.

Nomura, a Japanese brokerage firm, recently emphasised on India's burgeoning defence sector, projecting a substantial ordering opportunity of $138 billion spanning FY24 to FY32. This forecast is underpinned by increasing demand for advanced defence equipment, technologies, and services, signalling robust growth potential for firms engaged in defence production and technology development.

Also Read | Top 10 tech giants by market cap in 2024

Earlier projections by Nomura indicate a significant upward trajectory in India's defence capital expenditure (capex), with the share expected to rise to 37 percent of the total budget by FY30, up from 29 percent in FY25. This surge implies a cumulative capital outlay of approximately 15.5 lakh crore from FY24 to FY30, doubling the 7.8 lakh crore spent from FY18 to FY24. In the interim budget for FY2024–25, the Ministry of Defence received a total allocation of $74.8 billion ( 6,21,540.85 crore).

The Japanese brokerage firm remains optimistic about Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), considering them well-positioned to benefit from these developments.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:18 Jun 2024, 03:29 PM IST
HomeMarketsStock MarketsDefence stocks surge up to 20% with Paras Defence, HAL, Garden Reach Shipbuilders, Mazagon Dock at record highs

Most Active Stocks

Adani Power

725.35
03:50 PM | 9 JUL 2024
27.4 (3.93%)

Indian Oil Corporation

171.70
03:52 PM | 9 JUL 2024
1.55 (0.91%)

Bharat Electronics

334.55
03:57 PM | 9 JUL 2024
0.4 (0.12%)

Tata Steel

171.80
03:58 PM | 9 JUL 2024
-0.5 (-0.29%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Gland Pharma

2,027.50
03:44 PM | 9 JUL 2024
142.65 (7.57%)

KRBL

331.20
03:55 PM | 9 JUL 2024
22.4 (7.25%)

Phoenix Mills

3,994.20
03:29 PM | 9 JUL 2024
256.6 (6.87%)

Maruti Suzuki India

12,820.20
03:55 PM | 9 JUL 2024
794.2 (6.6%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,983.00-110.00
    Chennai
    74,128.00-691.00
    Delhi
    74,346.00-473.00
    Kolkata
    75,074.00400.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts