Here’s why ICICI Securities is upbeat on defence and related stocks:
The order book of defence-oriented companies is expected to improve in the second half of the fiscal, according to the ICICI Securities, citing Q2FY23 earnings calls.
Hindustan Aeronautics expects its order book to increase by Rs 50,000 crore in the next six months from manufacturing orders, the brokerage said. Repair and overhaul, and spares and development segments are likely to help the company get orders worth Rs 15,000 crore and Rs 1,600-1,700 crore per annum, respectively, he said.
Bharat Electronics expects an order book accretion of at least Rs 20,000 crore each in FY23 and FY24, while Bharat Dynamics expects its Rs 25,000-crore order book to double in the next two to three years.