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2h ago

Goldman Sachs Starts Coverage of Eight Indian Defence Stocks With Private Players in Focus

The bank signals preference for private contractors based on a projected multi‑decade expansion in India’s defence outlay.

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Overview

  • Buy ratings go to Bharat Electronics, Astra Microwave, Data Patterns, Azad Engineering, Solar Industries and PTC Industries, with Hindustan Aeronautics at Neutral and Bharat Dynamics at Sell.
  • PTC Industries carries the highest implied upside at about 58% and Astra Microwave at roughly 45%, while Solar Industries is seen up 36% over 12 months.
  • The initiation sets 12‑month targets across the group and frames valuations around earnings trajectories and cash generation through the current capex cycles.
  • Goldman’s thesis highlights three drivers: a domestic defence capital outlay rising to about Rs 10.4 trillion by FY47, indigenisation opportunities in electronics and aero‑engine parts, and export goals of Rs 500 billion by FY29.
  • The report projects stronger EPS growth for private firms than PSUs and flags risks from shifts in government allocations, product‑development delays and global OEMs revising sourcing away from India.