₹84,560 crore. In its report, brokerage house Nuvama Institutional Equities stated that the Ministry of Defence had taken a tactical move based on lessons learned.
The report highlighted that private players across the defence value chain would benefit by becoming tier 2/3 component suppliers, with Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Bharat Dynamics Ltd being the main beneficiaries. Also Read: Defence stocks rise as DAC sanctions ₹80,000 crore project; HAL up 2%; MTAR Tech, Bharat Forge see sharp gains According to Brokerage Nuvama, India has been observing and adapting the strategies employed in recent wars in Russia, Israel, and Armenia.
These strategies stress the importance of large defence systems, but they also recognise that modern warfare is fought strategically, employing cutting-edge technology-enabled systems (as evidenced by the current Acceptance of Necessity) to neutralise large weapon systems (which are expensive and valuable). “We like Bharat Electronics (‘HOLD’), HAL (not-rated) and Data Patterns (not-rated) in the defence space from a longer-term structural perspective," the brokerage said.
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