Budget 2025: HAL, BEL Are Sanjeev Hota's Top Picks In Defence Pack
Hota emphasised HAL and BEL were well-positioned to benefit from the government's focus on indigenisation and increased defence spending.
With the upcoming Union Budget 2025, defence stocks are gaining attention from investors and analysts alike. In a recent interview with NDTV Profit, Sanjeev Hota, head of research at Sharekhan, highlighted Hindustan Aeronautics Ltd. and Bharat Electronics Ltd. as top picks in the sector.
Hota emphasised HAL and BEL were well-positioned to benefit from the government's focus on indigenisation and increased defence spending. Both companies have the expertise and capabilities to secure significant orders, particularly in the areas of missiles, radar, and electronic warfare systems, he noted.
The defence sector remains top priority for the government, especially given the geopolitical tensions and the need for enhanced defence capabilities, Hota noted. The government's push for 'Make in India' in defence manufacturing is expected to drive growth for domestic players like HAL and BEL.
Despite some corrections in stock prices, the long-term outlook for the sector remains promising. "Integration of manufacturing of different equipment is where the government is working quite well. I believe defence spend will definitely go up," he said.
Several major defence programmes are expected to be rolled out in 2025, including the QRSAM, P75i submarine project, the LCA Mark 1A programme, and Pinaka missile system. These programmes present significant opportunities for domestic defence companies to secure large orders and expand their market presence.
While there may be some short-term volatility, the structural growth story of the defence sector in India is strong, Hota said.
