HAL, Mishra Dhatu And Other Defence Stocks In Limelight As Army Set For Rs 30,000-Crore QRSAM Boost

Share prices of defence bigwigs such as Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Mishra Dhatu Nigam Ltd. and more are in focus on Tuesday as the Defence Ministry is expected to soon clear the acquisition of three regiments of the indigenous quick reaction surface-to-air missile system in a deal estimated at around Rs 30,000 crore, as reported by ANI.

Sources in the defence establishment told ANI that the Defence Acquisition Council is likely to take up the proposal in the fourth week of June. The new QRSAM systems, developed by the Defence Research and Development Organisation, are set to be deployed along India's western and northern borders.

The QRSAM systems are designed for high mobility and rapid deployment. Capable of searching, tracking, and firing at targets while on the move or during short halts, the missile system brings a tactical edge to Army Air Defence formations. With an operational range of about 30 km, QRSAM will complement existing systems like the Akash and Medium-Range Surface-to-Air Missile platforms, extending the layered air defence shield from short to medium ranges.

Trials of the QRSAM were conducted under both day and night operational scenarios, with performance evaluations deemed successful by the defence establishment.

The Army Air Defence is simultaneously inducting new radar systems, very short-range air defence systems, and drone countermeasures including jammers and laser-based systems. These will be vital in tackling evolving aerial threats, particularly low-cost drones of Turkish and Chinese origins.

Among the defence stocks, Mishra Dhatu Nigam was leading the gains, up 5.65% to Rs 443.85 apiece at 10:22 a.m. Data Patterns (India) came second with a 3.86% increase, hitting Rs 3,067.90 apiece.

Hindustan Aeronautics also performed well, up 2.28% to Rs 5,123 per share, while DCX Systems increased by 2.26% to Rs 316.45.

Other stocks which saw an advance include Ideaforge Technology, which surged 1.76% to Rs 595.65 apiece, Bharat Electronics, up 1.57% to Rs 398.60, and Cyient DLM, which rose 1.45% to Rs 484 per equity share.

Counters which bucked the trend include shipbuilders Cochin Shipyard ad Garden Reach Shipbuilders and Engineers, whose share prices dipped 1.72% and 1.36% respectively. Unimech Aerospace and Engineers, as well as Bharat Forge also witnessed a decline.

In comparison, the Nifty India Defence index was trading 1.23% higher, while the benchmark Nifty 50 was trading at a 0.13% advance as of 10:30 a.m.