NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
PL Captial Report
Policy Update
The Department of Defence Production, Ministry of Defence, has notified the sixth Positive Indigenisation List (PIL) comprising 405 strategically important items across key defence platforms. Brokerage firm PL Capital believes the broader scope of the latest PIL is aligned with the government's Atmanirbhar Bharat initiative and should strengthen the domestic defence manufacturing ecosystem by driving capacity creation, increasing MSME participation across the supply chain and reducing import dependence.
The initiative builds on the Defence Acquisition Procedure (DAP) 2020 and Defence Procurement Manual (DPM) 2025, while complementing the Draft DAP 2026, which proposes indigenous content requirements of up to 60%.
According to the brokerage Bharat Electroncis Ltd. and Hindustan Aeronautics Ltd. have the highest share of items notified for indigenisation, with both companies already undertaking initiatives to deepen domestic sourcing. BEL has consistently invested in R&D, strengthened its vendor ecosystem through partnerships with MSMEs and established a dedicated Indigenisation Cell to support its Atmanirbhar Bharat objectives.
HAL, meanwhile, has established a dedicated indigenisation fund by allocating 3% of annual PAT and is pursuing indigenous development through its Make-II framework, supporting greater localisation across its platforms and supply chain.
Positive Indigenisation Lists are structurally positive for Indian defence companies as they create a domestic demand pool by mandating local sourcing of identified defence equipment and components. This should accelerate import substitution, and technology development, while increasing opportunities for private players and MSMEs across platforms, subsystems and critical components.
PL Capital remains positive on long-term growth story of BEL given-
- strong order backlog of Rs 722.6 billion (2.6x TTM Revenue) provide multi-year revenue visibility,
- healthy pipeline comprising QRSAM, NGC Systems, MFRX radars, P75I submarine programs and many others,
- diversification in non-defence verticals like data centres, cyber-security, drones and quantum communication to aid non-defence growth and
- government focus on product indigenization and import substitution, supporting long-term growth visibility.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
