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He said multiple older aircraft platforms are being phased out, which is increasing the urgency for fresh procurement, as India may need at least 200 aircraft over the next seven to eight years and more than 400 aircraft over the next 12 to 15 years.”There could be 40 to 50% locally manufactured, indigenous component even in profiles going forward,” he added, noting that this could benefit private defence companies, maintenance providers and other service players once details of contracts are finalised.
Hindustan Aeronautics
remains among the more comfortable picks for Anwani based on order visibility and execution pipeline. He expects delivery schedules to improve, which could support manufacturing revenue over time.
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In shipbuilding, Anwani said the order pipeline remains strong, with potential opportunities worth around ₹1.5 lakh crore to ₹2 lakh crore over the next two years. He expects companies such as GRSE and Mazagon Dock could benefit if these orders are cleared.
On defence electronics companies, Anwani said valuations remain relatively high, with stocks trading in the range of about 35-45 times forward earnings. He said this segment currently requires a cautious approach.
He also spoke about companies such as Solar Industries, saying order inflows in areas such as missile systems, UAVs and rocket systems remain strong. However, he said valuation levels remain high compared to some other defence segments.
For the full interview, watch the accompanying video
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