Defence Minister Rajnath Singh announced that India’s defence exports have surged to a record Rs.21,000 crore, up from Rs.2,000 crore a decade ago. Speaking to officers at the Army War College (AWC) in the historic Mhow Cantonment during his two-day visit to Madhya Pradesh, Singh highlighted the ambitious target of achieving Rs.50,000 crore in defence exports by 2029.
He emphasized the importance of mastering frontier technologies to stay ahead in an ever-evolving global landscape and stressed the vital role military training centers play in preparing soldiers to meet future challenges.
Here are the stocks to benefit from this development:
1. Bharat Dynamics Ltd
With a market capitalization of Rs.41,920 crore, the share price of Bharat Dynamics Ltd closed at Rs.1,142.90 per share on Friday, rising 1.55 percent from its previous close.
Bharat Dynamics Ltd (BDL) has received export orders for lightweight torpedoes, countermeasure dispensing systems, and the Akash Weapon System, approved for supply to nine countries. In April 2024, it secured a contract worth USD 255 million (approximately Rs.2200 crore) for defence products, bringing its total export order book to Rs.2449 crore.
BDL is expanding its product range to include advanced systems like Air-to-Air Missiles, Anti-Tank Guided Missiles (ATGMs), and Heavy Weight Torpedoes to attract a wider international clientele.
The company is also forming MoUs and joint ventures with foreign manufacturers, promoting technology transfer and product development under India’s offset policy. Additionally, BDL is working to convert leads from 21 countries into orders, with growing interest in products such as the Astra missile system.
In Q2FY25, the company reported a 12 percent year-on-year decrease in revenue to Rs.545 crore and a 16 percent fall in net profit to Rs.123 crore.
2. Hindustan Aeronautics Ltd
With a market capitalization of Rs.2.81 lakh crore, the share price of Hindustan Aeronautics Ltd closed at Rs.4,203.00 per share on Friday, falling 0.7 percent from its previous close.
Hindustan Aeronautics Limited (HAL) reported revenue of Rs.29,810 crore for the fiscal year 2023-24, driven by new manufacturing contracts exceeding Rs.19,000 crore and Repair and Overhaul (ROH) contracts surpassing Rs.16,000 crore.
The company also secured an export contract with the Guyana Defence Forces for the supply of two Hindustan-228 aircraft, which were delivered within a month of signing, highlighting its efficiency in meeting international orders.
Hindustan Aeronautics Limited (HAL) offers a diverse range of products, including the Light Combat Aircraft (LCA) Tejas, Advanced Light Helicopter (ALH), and Dornier Do-228 aircraft, catering to both domestic and international needs.
The company has formed international partnerships, such as with Airbus for maintenance operations and joint ventures for technology transfer, enhancing its export capabilities.
HAL is also focusing on expanding its market presence in Southeast Asia, West Asia, and North Africa, with plans to establish logistic bases in countries like Indonesia and Malaysia to support its products and foreign military equipment.
In Q2FY25, the company reported a 6 percent year-on-year increase in revenue to Rs.5,977 crore and a 20 percent increase in net profit to Rs.1,490 crore.
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3. Bharat Electronics Ltd
With a market capitalization of Rs.2.13 lakh crore, the share price of Bharat Electronics Ltd closed at Rs.291.95per share on Friday, falling 1.6 percent from its previous close.
For FY 2023-24, BEL reported a turnover of approximately Rs.19,700 crore, marking a 13.65 percent increase from the previous year. The growth was driven by securing orders worth around Rs.35,000 crore, including advanced defence systems like electronic fuzes, electronic warfare systems, and communication systems for naval warships.
Exports saw remarkable growth, with sales reaching USD 92.98 million, up 92 percent from the previous year. The company’s export order book now totals approximately USD 407 million, with significant contracts worth USD 211 million secured during the fiscal year.
BEL offers a diverse range of products, including TR Modules, CoMPASS, radar systems, electronic warfare solutions, medical electronics, and communication equipment, catering to global markets. The company is strengthening its technological capabilities through strategic partnerships with leading defence firms, which are essential for accessing advanced technologies and expanding its presence in international defence projects.
In Q2FY25, the company reported a 15 percent year-on-year increase in revenue to Rs.4,605 crore and a 39 percent increase in net profit to Rs.1,093 crore.
Written by – Siddesh
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