Jefferies initiate coverage on Hindustan Aeronautics Data Patterns and Bharat Electronics with Buy Call | self-reliance

India Defense Sector: Due to global geopolitical tensions and India's increasing focus on self-reliance in the defense sector, there is a big jump in the order flow of the country's domestic defense companies and due to this, the revenue of these companies has also increased significantly. The Indian government is making efforts to promote defense exports by improving relations with different countries. India can double its expenditure in the defense sector from the financial year 2023-24 to 2029-30. In such a situation, there may be a huge rise in the prices of shares of domestic defense sector companies in the coming days.

Jefferies is bullish on these stocks

Foreign brokerage house Jefferies has advised to buy shares of Hindustan Aeronautics (HAL), Data Patterns in view of increase in expenditure in defense sector and focus on exports. So the brokerage house is very positive on the stocks of Bharat Electronics Limited.

Jefferies has advised to buy Hindustan Aeronautics for a target of Rs 3900 which is currently trading at Rs 3589. The brokerage house has advised investors to buy the shares of Data Patterns which is currently trading at Rs 2739 and a target of Rs 3545 has been given. Jefferies has advised to buy the stock of Bharat Electronics for a target of Rs 260, which is trading at Rs 221.50.

Big opportunity for India

Jefferies said in its report that there is a business opportunity of 100 to 120 billion dollars available for domestic defense companies in the next 5 to 6 years. The industry can show growth of up to 13 percent annually. According to the report, India ranks third in the world in terms of spending in the defense sector. But compared to the total expenditure of America, India's defense expenditure in the calendar year 2022 was only 10 percent. Whereas compared to China it was only 27 percent. India ranks second in terms of import of defense equipment. According to the report, India's defense expenditure may show double digit growth due to indigenization. Jefferies believes that defense exports can show an annual growth of 21 percent in the next 5 to 6 years.

Disclaimer: (The information provided here is for informational purposes only. It is important to note here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. ABPLive.com It is never advised for anyone to invest any money here.)

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