Five Defence Stocks To Keep An Eye On After DAC's Rs 79,000 Crore Procurement Approval

The expectations of the Defence Acquisition Council's approval for defence procurement deals worth Rs 79,00 crore sent some of the defence stocks flying in trade on Monday.

Following the announcement during late market hours, some of the stocks will continue to remain in focus, particularly of those companies that are engaged in the manufacturing and production of more than a dozen items mentioned in the procurement list.

Soon after the announcement from the DAC, NDTV Profit had given you a complete list of stocks set to benefit from the Rs 79,000 crore defence spend.

Here, we will take a look at five defence stocks one should keep eye on, heading into trade on Tuesday.

Bharat Electronics Limited (BEL) is the primary beneficiary of the DAC's approval as they are engaged in active manufacturing and production of multiple items included in the Acceptance of Necessities.

These include Low Level Light Weight Radars, Long Range Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System and Automatic Take-off Landing Recording System, Astra Mk-II Missiles.

Zen Technologies is also involved in the manufacturing and production of more than one item mentioned in the procurement list.

The company particularly specialises in Integrated Drone Detection & Interdiction System Mk-II for the Indian Army.

They are also invovled in the business of producing Full Mission Simulator and SPICE-1000 Long Range Guidance Kits.

Another beneficiary is Bharat Earth Movers Ltd. (BEML), which, along with BEL, also produces Long Range Guided Rocket Ammunition for Pinaka Multiple Launch Rocket System.

Along with BEL, Bharat Dynamics is a key manufacturer of Automatic Take-off Landing Recording System and Astra Mk-II Missiles, making them a crucial beneficiary of the DAC package.

Finally, the entire Shipbuilding pack, including the likes of Garden Reach Shipbuilders, Astra Microwave, Cochin Shipyard, and Mazagon Dock will be in focus, primarily due to the mention of Bollard Pull (BP) Tugs, High Frequency Software Defined Radio, a product they are all involved in.