| Defence stocks | Decline from highs | 1YR P/E |
| Bharat Dynamics | down 41% | 37.2X |
| BEL | down 26% | 33.1x |
| Well | down 52% | 25.2x |
| Cochin Shipyard | down 56% | 27.6x |
| HAL | down 41% | 26.1x |
| Mazagaon dock | down 27% | 24.5x |
| Zen Tech | down 60% | 24.0x |
| Data Patterns | down 58% | 32.5x |
P/E refers to the price-to-earnings ratio, which measures a stock’s valuation relative to its earnings. The figures in the table represent the forward P/E, based on estimated future earnings.
While the stock of Bharat Dynamics Ltd climbed over 9%, Hindustan Aeronautics Ltd gained 2%, whereas Garden Reach Shipbuilders rallied 15%.Earlier in December, Elara Securities upgraded stocks including HAL, Bharat Dynamics, Bharat Electronics, and Garden Reach Shipbuilders on expectation of increase order flows.
We expect ordering flow to rise sharply in the March quarter of the current financial year, given that the defence capex is set to be met in the current financial year, Elara wrote in an investor note.The brokerage further added that, allocation to domestic companies currently stands at 75% of the total budgeted defence capex, with the Indian Navy’s budget having gone up by 18% from last year in the Budgeted Estimates of financial year 2025.
Out of the 16 analysts that have coverage on Hindustan Aeronautics, 15 of them have a “buy” rating, while the other one has a “sell” rating.
Out of the 27 analysts who cover Bharat Electronics, 24 of them have a “buy” rating, while two of them suggest a “Sell”, one analyst recommends “Buy”.
Of the eight analysts who cover Bharat Dynamics on Bloomberg, four of them have a “buy” rating, three suggest “hold”, while the other one has a “sell” rating on the stock.
Even the broader market bounced back in Wednesday’s trade with a greater number of stocks gaining against each loser. As many as 1980 stocks gained on the NSE against 575 stocks that saw decline.
