The European Commission’s Rearm Plan shot booster in the Indian defense sector: HAL, 6 stocks to buy Bel

The European Commission has announced a major defense initiative, in response to the increasing security threat. Analysts believe that European defense costs will increase Indian defense stocks, especially India electronics and others.

In addition, the cost of the government on infrastructure and capital goods remains strong, and the expansion of private sector capacity is also increasing.

Here’s what the experts have said about the field view:

Nilesh Shah, MD and CEO, Envision Capital

In the interaction with Ato, Nilesh Shah said how the cost on the government’s infrastructure and capital goods remains strong, and the expansion of private sector capacity is also increasing.

He noted that the recent fresh defense orders have been a slowdown, but the order is expected to increase by the end of this fiscal year or the beginning of the next. In areas such as aerospace and space technology, some companies have been seen developing strong engineering and production capabilities, making them the main players in domestic and global markets.

Shah said that infrastructure and defense sectors face execution-related delays, causing investors to take a long-term view (2-3 years) instead of focusing on short-term fluctuations.

In addition, following the recent correction, capital goods, capex and defense stocks are now more attractive to long -term investors.

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Chakrakpriya, CIO-Equities, LGT Property

Chakra popular believes that the European Commission will benefit from the Ukraine war, with the rising costs of European countries and the UK due to the Ukraine war.

Large defense companies such as Bharat Electronics (BEL) and Hindustan Aeronautics (HAL), as well as small component manufacturers, are ready to achieve these increased costs.

Lokpriya said recent reforms in defense stocks were due to uncertainty over the long -term growth rate. However, Europe is likely to improve the growth expectations for Indian defense companies, with commitment to defense costs in the next 10 years.

ICICI Securities

Domestic brokerage Pay FIRM ICICI Securities also believes that the European Commission’s Rearm European Plan will boost Indian defense companies as they have published solar industries, PTC industries, dynamatic technologies and indigenous engineers as the main beneficiaries of such a policy in all these stocks.

Brokerage Pay FIRM target price is Rs 13,720 for solar industries, Rs 20,070 for PTC Industries, Rs 9,330 for dynamatic technologies and Rs 2,350 for AZ Engineering.

President Ursula von der Lane proposed a five-point plan dubbed as Rearem Europe, to help pay for further security costs before the EU leaders’ meeting in Brussels on March 6, 25th.

ICICI Securities said in its report, “In our view, more costs on defense bodies by the EU are for India’s defense players who have established relations with EU players like Solar Industries, PTC Industries, AZ Engineering and Dynamatic Technologies.”

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(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)