3 Defence Stocks Likely To Give Higher Return After Govt Defence Push, Brokerages Give Buy Call

The defence push of the central government is likely to assist stocks such as Hindustan Aeronautics, Bharat Forge, and Bharat Electronics. According to Motilal Oswal, "The Defence business is ready to take off and is waiting for orders to come in."

Meanwhile, leading brokerages have recommended investors to buy these stocks. ICICI Securities in its latest report has given buy call to Bharat Electronics with a target price of Rs 125 apiece and Hindustan Aeronautics with a target price of Rs 2850 apiece. Motilal Oswal has assigned buy call to Bharat Forge with a target price of Rs 1015. If you buy these stocks now, you will likely to get maximum 37% return. Check details below:

1. Buy Bharat Electronics Ltd

ICICI Securities has assigned buy call to Bharat Electronics Ltd with a target price of Rs 125 apiece. Current market price of Bharat Electronics is Rs 91.95 apiece with an intraday surge of 1.16%.

If you buy Bharat Electronics now, you will get a potential return of 37%. The stock's 52-week high is Rs 115.00 apiece and 52-week low is Rs 62.24 apiece, respectively. The company has a market capitalisation of Rs 67,140.32 crore.

The Defence sector stock has given 30% return in last 1-year and 223% return in last 3-years. The large cap company was incorporated in 1954.

2. Buy Hindustan Aeronautics

The last trading price of the stock is Rs 2383.25 after an intraday gain of 0.83%. ICICI Securities has recommended investors to buy Hindustan Aeronautics Ltd with a target price of Rs 2850 apiece.

If you buy Hindustan Aeronautics now, you will likely receive a return of 20%. The stock's 52-week high is Rs 2812.75 apiece and 52-week low is Rs 1248.65 apiece, respectively. It has a market capitalisation of Rs 79,935.33 crore.

The large cap Defence sector stock soared 16% in last 6-months and 68% in last 1-year. In last 3-years, the return is 209%. It was incorporated in 1963.

According to ICICI Securities, "We see HAL in a sweet spot, riding on its solid orderbook (highest among defence companies under our coverage). In our view, strong order pipeline along with development projects in progress are likely to maintain earnings momentum in medium to long run."

3. Buy Bharat Forge

Motilal Oswal has assigned buy call to Bharat Forge with a target price of Rs 1015 apiece. The current market price of Bharat Forge is Rs 873.80 apiece with an intraday rally of 0.80%.

If you buy Bharat Forge now, you can expect to receive a potential return of 16%. The stock's 52-week high is Rs 919.50 apiece and 52-week low is Rs 595.85 apiece, respectively. It has a market capitalisation of Rs 40,675.48 crore.

The stock gave a return of 15% in last 1-year and 83% in last 3-years.

According to Motilal Oswal, "We estimate a consolidated revenue/EBITDA/PAT CAGR of 11%/23%/39% over FY23-25E. The stock trades at 25.1x/20.4x FY24E/FY25E consolidated EPS. We reiterate our Buy rating with a TP of INR1015 (at 25x Dec'24E EPS)."

 

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities and Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage Houses are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.