Let us look at the proposals and the stocks that are likely to benefit from these:
For Indian Army
The Defence Acquisition Council has approved the acquisition of Thermal imager-based driver Night Sight for the infantry fighting vehicle.Bharat Electronics, or BEL is likely to be the beneficiary of this as it supplies the commander thermal imaging sight for the BMP-1/2/2K Infantry Combat Vehicles and T-72 tanks.
For Indian Navy
The DAC has approved multiple proposals for the Indian Navy, one of them is the procurement Procurement of Compact Autonomous Surface Craft, which could benefit private companies like Sagar Defence.
Approval for the BrahMos Fire Control System and Launchers will likely benefit names like Larsen & Toubro (L&T) and Godrej Aerospace.
Additionally, the DAC has approved the upgradation of the BARAK-1 Point Defence Missile Systems, which could benefit names like Bharat Electronics, Bharat Dynamics or Adani Defence.
For Indian Air Force
Multiple proposals have also been approved for the IAF, one of which is the procurement of the Mountain Radar, which could benefit stocks like BEL and Astra Microwave.
The upgradation of SAKSHAM and SPYDER Weapons System for integration with the Integrated Air Command and Control System (IACCS), has also been approved, which could make BEL a beneficiary again.
Approval is also granted to acquire Medium Altitude Long Endurance (MALE) drones, which could benefit Adani Defence, Tata Advanced Systems, BEL, Hindustan Aeronautics, who is a key partner in DRDO’s MALE programme, and L&T.
Lastly, the approval for maintenance of the S-400 Air Defence System could benefit listed players like BEL or Bharat Dynamics, along with other private names.
The Nifty India Defence Index is down 11% in the last one month, with stocks like BEL and Bharat Dynamics having declined 8% and 18% respectively over the same period.
