1 week ago
Kotak Favors HAL as Defence Indigenization Benefits Electronics
Kotak studied a new Indian defence-manufacturing list.
It found that many listed items are related to electronic equipment.
These include parts for radars, sonars, communication systems and other important defence tools.
The list also includes aircraft, missiles, armoured vehicles and warship components.
Kotak believes smaller manufacturers may receive much of this work.
It preferred HAL among the companies it reviewed.
Kotak gave HAL an Add rating with a target price of Rs 5,305.
It gave lower ratings to several other defence-related companies.
Kotak said 56% of items in the 6th Positive Indigenization List are linked to Bharat Electronics Ltd.
The list covers defence-electronics components for radars, sonars, satellite communications, fire-control and other systems.
Kotak said aerospace opportunities include components for the ALH, LUH, Su-30MKI, LCA Tejas and AL-31FP engine.
The brokerage expects MSMEs and companies including BEL, Astra Microwave, Data Patterns and Paras Defence to benefit.
Kotak retained an Add rating on HAL, while rating BEL Reduce and Mazagon Dock, Cochin Shipyard and Solar Industries Sell.
- Who
- Kotak and the listed defence companies discussed in its research, including HAL, BEL, Mazagon Dock, Cochin Shipyard and Solar Industries.
- What
- Kotak assessed potential beneficiaries of the 6th Positive Indigenization List and issued stock ratings and target prices.
- Where
- India’s defence sector.
- When
- Why
- The list contains defence components and subsystems, with a significant focus on defence electronics, aerospace, missiles, armoured platforms and naval systems.
Key facts
- Research house
- Kotak
- List assessed
- 6th Positive Indigenization List
- Electronics-linked items
- 56% of the list, according to Kotak
- HAL rating and target
- Add; Rs 5,305
- BEL rating
- Reduce
- Mazagon Dock target and rating
- Rs 1,950; Sell
- Cochin Shipyard and Solar Industries
- Targets of Rs 860 and Rs 11,200 respectively; Sell ratings
Quotes
Kotak Securities analyst
Analyst at Kotak Securities
“"This should benefit broader defence electronics systems, including Bharat Electronics, Astra Microwave, Data Patterns and Paras Defence, among listed players,"”
businesstoday.in
Sources
Related news
India’s Defence Electronics Shift Opens Rs 3,100-Crore Opportunity
Nuvama Favors BEL, Solar Industries Among Defence Stocks
Govt Notifies 405-Item Defence Indigenisation List Worth Rs 3,070 Crore
India’s Defence Indigenisation Targets 405 Components Across Supply Chains
Antique reiterates BUY on HAL, BEL, Mazagon Dock shares
Antique backs HAL, BEL, Mazagon Dock on defence order funnel
Telangana CM Invites Rajnath Singh to Defence Summit
India’s Post-Sindoor Defence Push Targets Networked Future Warfare
India's R&D Ecosystem Faces Hurdles On Path To Knowledge Economy
Pune To Host AWTIS 2026 Technology Innovation Summit
High Court Denies Bail to Wife in Rs 7.8-Crore Fraud
