Indian defence companies a long-term growth story; betting on Zomato: Siddhartha Khemka
Siddhartha Khemka, Head of Retail Research, MOFSL, says among food aggregators, we definitely like Zomato. We have a target price of Rs 110. We believe the excellent Q1 numbers where the company has turned profitable at PAT level, which is much ahead of its Q4, FY24 guidance. We believe that the company could see strong growth where the management is confident of achieving 40% plus organic growth. Even Blinkit is seeing improvement.”
How realistic are the gains in some of the companies which have got business or presence in this entire space/rocket vertical? Stocks have gone up 50 to 100% even though the upside could be minuscule. Is it time to log out of BHEL or Paras Defence or Centrum Electronics? Just about every company in that space has got re-rated because of the Chandrayaan mission.
The defence space has been in momentum not only because of the Chandrayaan effect but in the past several months also we have seen the large order book that has flown to some of these Indian companies.
The opportunity for the private sector and defence has quite opened up in the last few years. A special mention here is to the export potential that has opened up.
The government has not only tied up with some of the foreign companies for Make in India but also for technology transfer. That is where the multi-year growth story for defence comes into play.
Chandrayaan is just one of the events which showcases the technical capabilities of some of these companies. There are definitely not going to be so many space projects in India. There could be some opportunity from some of the global players where they can come and provide supply to them.
But space is just a small portion of the overall opportunity in defence, especially in an
