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4 Defence stocks to benefit after Govt approves projects worth ₹21,772 Cr

The Defence Acquisition Council approved projects worth ₹21,772 crores, including procuring advanced helicopters and other defence assets, which is expected to benefit key defence stocks.
4 defence stocks set to benefit from government-approved projects worth ₹21,772 crore, boosting growth and financial prospects.

Introduction:

The Defence Acquisition Council (DAC) recently approved capital acquisition proposals worth ₹21,772 crore to enhance India’s defence capabilities. These initiatives aim to strengthen surveillance, coastal security, and operational efficiency. 

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The approved projects cover various defence equipment, including helicopters, fast attack crafts, and advanced radar systems. Among the key approvals was procuring six Advanced Light Helicopters (ALH) to strengthen the surveillance capabilities of the Indian Coast Guard. 

These helicopters will enhance coastal security, particularly in sensitive coastal areas. The project reflects India’s growing focus on improving defence preparedness for maritime and coastal operations.

In addition to the helicopters, the DAC also approved the acquisition of fast interceptor crafts, radar systems, and electronic warfare suites. The approval is expected to impact the following defence stocks positively. 

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Hindustan Aeronautics: 

On December 04, Hindustan Aeronautics Ltd (BSE: HAL) opened at ₹4,609.95, reached a high of ₹4,626.30 and a low of ₹4,516.80; the stock is currently trading at ₹4,526.00, up by 0.20%. The company’s market capitalization is ₹3,02,687.57 crore.

The recent DAC approvals, including the purchase of advanced helicopters, are expected to benefit Hindustan Aeronautics Ltd (HAL). The company will likely secure contracts for manufacturing and maintenance services, increasing demand for its helicopters.

Hindustan Aeronautics Ltd is a key player in the Indian aerospace sector, specialising in the design, manufacture, and maintenance of aircraft and helicopters. With a focus on innovation, HAL supports both defence and civilian sectors.

Cochin Shipyard: 

On December 04, Cochin Shipyard Ltd (BSE: COCHINSHIP) opened at ₹1,700.00, reached a high of ₹1,720.00 and a low of ₹1,680.00; the stock is currently trading at ₹1,692.00, up by 0.34%. The company’s market capitalization is ₹44,513.27 crore.

The recent DAC approvals, including procuring advanced helicopters and other defence assets, are expected to benefit Cochin Shipyard, given its substantial presence in defence and maritime services. The company stands to gain from increased demand for shipbuilding and repair services for defence projects.

Cochin Shipyard Limited is a prominent player in shipbuilding and repair services, specialising in large vessels and offshore structures. The company is known for its advanced technology and expertise in maritime operations.

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Paras Defence and Space Technologies: 

On December 04, Paras Defence and Space Technologies Ltd (BSE: PARAS) opened at ₹1,100.55, reached a high of ₹1,138.65 and a low of ₹1,100.55; the stock is currently trading at ₹1,124.45, up by 3.29%. The company’s market capitalization is ₹4,530.82 crore.

For Paras Defence, procuring advanced defence equipment such as radar systems and electronic warfare suites aligns with its focus on providing innovative solutions to the defence sector. This news signals potential growth in contracts and opportunities for the company.

Paras Defence and Space Technologies Limited is a leading defence and aerospace solutions provider, offering advanced products for defence, space, and homeland security. The company focuses on innovation and technology to meet national security needs. 

Bharat Electronics: 

On December 04, Bharat Electronics Ltd. (BSE: BEL) opened at ₹316.95, reached a high of ₹320.85 and a low of ₹312.65; the stock is currently trading at ₹313.20, up by 0.38%. The company’s market capitalization is ₹2,29,161.57 crore.

Bharat Electronics Limited (BEL) is likely to see positive impacts from the DAC approvals, particularly with an emphasis on advanced radar systems and electronic warfare technologies. The company’s expertise in these areas positions it well to secure additional defence contracts.

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Bharat Electronics Limited (BEL) is a renowned public sector company specialising in electronics for defence and other strategic sectors. With a strong emphasis on research and development, BEL offers cutting-edge solutions in radar, communication, and surveillance.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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