By Admin 
India Defense Sector: Global brokerage firm Goldman Sachs sees a lot of promise in India’s defense sector. According to one of its reports, India’s aerospace and defense market is going to grow rapidly.
In fact, all the proposals in this sector are getting government approval, due to which its Total Addressable Market (TAM) is getting stronger. Recently, on October 23, the Defense Acquisition Council (DAC) approved a proposal worth Rs 790 billion for the Navy, Army and Air Force. It is clear from this that the government is continuously focusing on strengthening the defense sector of the country.
India’s defense system is getting stronger
Actually, India is looking to strengthen its defense system in view of the tensions with its neighbors like China and Pakistan. In this sequence, DAC has given green signal to the proposal to purchase new missile systems, high-mobility vehicles and many other equipment. This deal is worth Rs 790 billion (about 9 billion dollars).
Along with this, defense proposals worth Rs 2.5 trillion have been approved so far this year, and more proposals are expected to be approved in the remaining six months. This is more than the proposals worth Rs 2.3 trillion in the last financial year. It is clear from this that India is spending more and more on its defense sector.
Goldman has hope from these shares
Meanwhile, Goldman has given ‘buy’ rating to shares of PTC Industries and Solar Industries and also increased their target prices to Rs 24,725 (46 per cent higher) and Rs 18,215 (30 per cent higher) respectively. Apart from these, it also maintained its ‘buy’ rating on Bharat Electronics (BEL), Astra Microwave, Data Patterns and Azad Engineering. However, it adopted a ‘neutral’ stance on Hindustan Aeronautics (HAL) and also reduced the target price on Bharat Dynamics (BDL) by 11% to Rs 1,375 and gave a ‘sell’ rating.
Since BEL is a major supplier to the defense sector in India, Goldman expects it to earn a profit of Rs 120-150 billion from the next electronics and integration contract. Similarly, given the increasing investment in electronic warfare and radar systems, the income of Data Patterns and Astra Microwave is also expected to increase.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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