Defense Stock News

Defense stocks rose across Europe and Asia after US President Donald Trump said NATO nations should shoot down Russian aircraft that violated their airspace and struck a more sympathetic tone on Ukraine’s chances of winning the war.

Data Patterns India Ltd shares have surged 225% over three years, despite a recent 13% decline. Q1FY26 PAT dropped 22%, with revenue slipping 5%. Brokerages maintain optimistic targets, citing strong order inflows and growth projections in the defence sector.

Jefferies' Christopher Wood predicts a decline in US market dominance, a weakening dollar, and a shift towards Asian assets and European defense stocks. He highlights structural overvaluation in US equities and projects long-term strength for Asian currencies amid geopolitical risks.

Defence stocks rose up to 7% on Tuesday after PM Modi advocated for Made In India defence equipment and emphasized military self-reliance. Key stocks like Bharat Electronics and Hindustan Aeronautics saw significant gains, with BEL rising 4.5% and HAL jumping 4% during trading.

A big rally in defense stocks, deal-fueled gains in banks and a surge in Siemens Energy AG shares were among the main highlights for European stocks in 2024, a year that again saw the region struggle to keep pace with the US.

India's Defence Acquisition Council has approved five acquisition proposals worth ₹21,772 crore to enhance military capabilities. Key beneficiaries include Bharat Electronics, Astra Microwave, and Bharat Dynamics, while some some firm face cautious outlooks due to competitive pressures.

Apollo Micro Systems shares surged 920% over four years, reflecting strong investor confidence amid increasing domestic defence spending. The company reported an 84.38% revenue growth in Q2 FY25, alongside a substantial PAT increase, highlighting its potential in the growing defence sector.

A recent study by Value Stocks indicates that while some Public Sector Undertakings (PSUs) are overvalued, many remain undervalued. Key sectors like defence, railways, and shipbuilding show significant growth potential after price corrections, making them attractive for long-term investment.

Defence Stocks: The recent surge in capital allocation by the union government has ignited a wave of optimism, propelling defence PSU stocks to new heights.

ICICI Securities maintains a 'sell' recommendation on Garden Reach Shipbuilders despite a 122% surge. It cites anticipated delays in order execution from Bangladesh and competitive pressures on margins.