What Does The Defence Sector Expect From Budget 2024? | Union Budget Expectations
Summary
TLDRIn this episode of 'Budget Trade' on NDTV Profit, host Samina Nala discusses India's defense sector, focusing on the impact of Defense Minister Rajat Singh's plans to enhance domestic manufacturing and exports. The show highlights the sector's growth, with defense stocks soaring and the interim budget for FY 2024-25 allocating a significant 13% of total expenditure. Expert opinions on the potential benefits of increased R&D incentives, collaboration between public and private sectors, and the focus on exporting complete defense platforms are shared, suggesting a promising future for India's defense industry.
Takeaways
- 📈 Defense stocks have seen increased investor interest due to ambitious plans to boost India's defense exports and strengthen domestic manufacturing under the Make in India initiative.
- 💰 India is the fourth highest defense spending country, with the interim budget for FY 2024-25 allocating 6.21 lakh crores to defense out of a total budget of 47.66 lakh crores.
- 🔍 The final budget for FY 2024-25, expected on July 23, will provide a clearer picture of India's defense priorities.
- 📊 The Nifty defense index currently has an order book of 2.87 lakh crores, showing strong future potential.
- 🚢 Defense stocks like Garden Reach, Cochin Shipyard, Mazagon Dock, and others have shown significant gains in the past year, with returns as high as 198%.
- 🔧 Key themes for the future include indigenization, increased defense exports, and higher government contracts for military equipment.
- 🌍 India's defense exports aim to reach 50,000 crores by FY 2028-29, a significant increase from the current 21,000 crores.
- 💡 The government is focusing on policies to support local defense manufacturing, R&D, and collaboration between public and private sectors.
- 🚀 Private sector involvement in R&D and technology development is expected to increase, driven by initiatives like the Technology Development Fund.
- 📉 Despite the recent rally in defense stocks, experts believe there is still potential for growth, especially for companies involved in advanced defense equipment and technology services.
Q & A
What is the current focus of the Indian defense sector according to the script?
-The current focus of the Indian defense sector is on boosting defense exports and strengthening domestic manufacturing under the 'Make in India' initiative, as outlined by Defense Minister Rajat Singh.
What is India's ranking in terms of defense spending?
-India stands fourth in the rankings of the highest defense spending countries, following the US, China, and Russia.
What was the defense share and budget allocation in the interim budget for FY 2024-25?
-The defense share and budget allocation in the interim budget for FY 2024-25 stood at 13%, amounting to 6.21 lakh crores out of a total budget of 47.66 lakh crores.
When is the full budget for FY 2024-25 expected to be provided?
-The full budgetary picture for FY 2024-25 is expected on the 23rd of July.
What is the current order book value of the Nifty defense index?
-The current order book value of the Nifty defense index stands at 2.87 lakh rupees.
How have defense stocks performed in terms of investor wealth creation over the last one year and one month?
-Defense stocks have seen significant gains, with companies like HAL and BML experiencing year-to-date returns of 99% and 83% respectively, and even higher returns in the last one month.
What is the growth trend in defense budget allocation over the years?
-There has been a significant jump in defense budget allocation, with an 18.3% growth from FY 21 to 22 to the interim budget of FY 24 to 25.
What are the key themes in focus for the defense sector in the upcoming budget?
-The key themes in focus include indigenization, localization of production to benefit domestic manufacturers, defense exports, and higher government contracts for acquiring new military equipment.
What is the current status of defense exports according to the script?
-Defense exports have jumped to about 50,000 CR, with a plan to increase this number by FY 2028-29, representing a 3X jump from the FY 21 level.
What are the expectations from the defense budget in terms of R&D and private sector involvement?
-There is an expectation for more government incentives and reforms to support the growth of the 'Make in India' theme, including a push towards privatization of R&D in defense technologies and collaboration between DPSUs and private industries.
How do the experts suggest the defense sector can compete more efficiently in the global market?
-Experts suggest that the focus should be on exporting complete platforms rather than components, and that the government should encourage R&D and provide incentives for the private sector to develop advanced defense technologies.
Outlines
🚀 Defense Stocks and India's Make in India Initiative
The video script opens with a discussion on defense stocks in India, focusing on the impact of the defense minister Rajat Singh's plans to increase defense exports and domestic manufacturing under the Make in India initiative. India's ranking as the fourth highest spender in defense is highlighted, along with the interim budget allocation for FY 2024-25, which stands at 13% of the total budget. The script also mentions the anticipation of the full budget on July 23rd and the current order book value of the Nifty defense index. The segment ends with a preview of the defense minister's ambitious plans for capital outlay and a discussion on the performance and expectations of defense stocks.
📈 Growth and Expectations of the Defense Sector
This paragraph delves into the performance of defense stocks, noting significant gains over the past year and the last month. It outlines the growth in defense spending from previous years to the current interim budget, highlighting an 18.3% increase. The focus on indigenization and the Make in India theme is emphasized, with a mention of the defense minister's comments on the growth of defense manufacturing. The paragraph also discusses the defense export target set by Rajat Singh and the potential policy initiatives to support this growth. Lastly, it touches on the importance of higher government contracts for new military equipment and the benefits to listed companies with substantial order books.
🌐 Geopolitical Impacts and Defense Sector Growth
The conversation with Amit Mahajan, Director of Faris Defense, explores the defense sector's potential for growth, influenced by geopolitical scenarios and the need for India to be self-reliant in critical defense technologies. Mahajan emphasizes the importance of R&D and the role of the private sector in developing defense technologies, suggesting that incentivization could boost the industry. He also discusses the preference for collaborative approaches between public sector units (PSUs) and private industries, citing successful past collaborations. The potential for India to become a significant player in defense technology exports is also highlighted, with a focus on exporting complete platforms rather than components.
💼 Budget Expectations and the Future of Defense Spending
Hasid Kardiya from Nara Capital shares his expectations for the upcoming budget, suggesting stability in the defense capital budget with no significant increase expected. He anticipates potential reallocations within the armed forces but maintains that the overall budget will remain consistent. Kardiya also discusses the importance of R&D investment, noting the government's increased funding towards startups and technology development. The potential benefits for companies involved in the Navy and Air Force, as well as those in drone technology, are highlighted. The discussion concludes with an analysis of private defense companies that could gain from the budget, emphasizing the secondary benefits to those supplying components and being part of the defense ecosystem.
🛫 Defense Budget Allocation and Market Valuations
The final paragraph focuses on the expectations from the budget regarding allocations for the Navy and Air Force, and the potential benefits for companies involved in these sectors. It also mentions the possibility of imports for the Indian Navy, particularly related to the Rafale M and drone technologies. Shipbuilding companies are expected to benefit from domestic orders, with policy announcements under the Maritime India Vision 2030. The discussion touches on private sector companies like Par Defense, Zen Technologies, and others that could gain from the budget. The paragraph concludes with a consideration of whether the recent market rally is justified, with an acknowledgment of high valuations but also the potential for further upside based on domestic capital expenditure and future order conversions.
Mindmap
Keywords
💡Defense Stocks
💡Make in India Initiative
💡Defense Spending
💡Interim Budget
💡Capital Outlay
💡Indigenization
💡Defense Exports
💡Order Book
💡R&D (Research and Development)
💡Geopolitical Scenarios
💡Technology Hub
💡PSUs (Public Sector Undertakings)
💡Budget Allocation
💡Domestic Ecosystem
💡Reforms and Policy Initiatives
Highlights
Defense stocks have been gaining investor interest due to India's ambitious plans to boost defense exports and strengthen domestic manufacturing under the 'Make in India' initiative.
India ranks fourth globally in defense spending, with a 13% share in the interim budget for FY 2024-25, amounting to 6.21 lakh crores out of a total budget of 47.66 lakh crores.
The interim budget showcases a consistent approach towards modernizing the Armed Forces and promoting a domestic ecosystem for defense manufacturing.
The final budgetary picture for FY 2024-25 is expected on July 23rd, providing more clarity on defense spending.
The current order book of the Nifty defense index stands at 2.87 lakh rupees, indicating future potentials in the sector.
Defense stocks have seen significant gains over the past year, with companies like HAL and BEL showing returns of 99% and 83% respectively.
The government's focus on defense budget allocation has seen a substantial increase, with a 18.3% growth from FY 21 to 22 to the interim budget of FY 24 to 25.
Defense manufacturing in India has grown over 177% to about 1.26 lakh crores in FY 24, supporting the 'Make in India' theme.
Defense exports are targeted to reach 50,000 crores by FY 2028-29, a significant increase from the current level of 21,000 crores.
Expectations of more policy reforms and initiatives to support growth in the 'Make in India' theme for defense manufacturing.
Increased government contracts for acquiring new military equipment such as weapons, aircraft, and warships are anticipated to benefit listed defense companies.
Hindustan Aeronautics has a substantial order book of 94,000 crores, indicating healthy revenue growth visibility.
Analysts project a substantial ordering opportunity of $138 billion in India's defense sector from FY 2024 to FY 2032, driven by increasing demand for advanced defense equipment and technology.
Favorable government policies, particularly those incentivizing R&D and private sector participation, are expected to spur growth in the defense sector.
The defense sector is poised for an all-time high, with a long-term growth outlook supported by geopolitical scenarios and the push for self-reliance in critical defense technologies.
Collaboration between DPSUs and private industries has been successful in past projects, suggesting a continued approach that could benefit both sectors.
The focus for defense companies is to satisfy domestic requirements first before looking at exports, with a preference for exporting complete platforms rather than components.
The budget is expected to allocate funds towards the Indian Navy and Air Force, potentially benefiting companies with products or components in these areas.
Investment in drone and counter-drone systems is anticipated, which could benefit companies operating in these spaces.
Policy announcements under the Maritime India Vision 2030 are expected to benefit shipbuilding and ship repair companies.
Private defense companies supplying components and part of the ecosystem are also expected to gain from the budget allocations.
The recent rally in defense stocks may be justified by high evaluations, but investors should be cautious and consider the post-budget allocation and order pipeline.
Transcripts
[Music]
hello and welcome you're watching budget
trade on NDTV profit and this is Samina
Nala today's focus is defense defense
stocks have been in focus with investor
interest soaring following defense
minister rajat Singh's ambitious plans
to boost India's defense exports and
strengthen domestic manufacturing under
the make in India initiative India
stands fourth in the rankings of highest
defense spending countries next only to
the US China and Russia the defense
share and budget allocation in the
interim budget for F5 2425 stood at 13%
at 6.21 lakh crores out of a total
budget of 47.66 lakh crores while the
interim budget provides a preview of
India's ongoing defense priorities and
showcases a consistent approach in
implementing policy initiatives towards
modernization of the Armed Forces and
promoting a domestic ecosystem for
defense manufacturing the final
budgetary picture will be provided by
the full budget of F5 2425 which is
expected on the 23rd of July well
remember the current order book of the
Nifty defense index stands at 2.87 lakh
rupees for the future potentials well
let's quickly listen into what the
defense minister had to say as he outlay
or laid out rather the capital outlay
and his very ambitious defense plans
PR
welli is standing by to tell us what the
sector expects from the big bag budget
in the next couple of weeks anushi the
stocks have gotten very excited so from
garden reach to a coachin to masg dogs
to Zen a Paris defense these stocks have
had a phenomenal dream run over the last
one year 6 months and even the last one
month walk us through what's expected
from the sector in terms of budget
expectations and also how how has the
stock performed in terms of investor
wealth
creation well Samina defense is the
theme of today and just let's just look
at how the defense in general has done
if you look at the defense stocks their
year-to dat return their one month
return they've been on a tear ever since
just look at a Hal just look at BML 99%
83% of gains in this just year-to dat
period while in one month also the
there's no stopping these defense talks
about 49% gains for coachin Shipyard all
the ship building companies in fact
let's go to a mazow dog as well um mazow
dog Garden reach we are seeing about
198% to 144% of gains over the year
to-day basis and even the 97% Garden
reach has this clocked in but before we
go into what we should be expecting
about these defense budget expectations
let's see overall how the government has
focused on the budget over the years so
if you look at the allocation over the
period so we have seeing a significant
jump in the growth period so now fy21 to
22 4.78 lakh CR if we go to FY 24 to 25
in this internal budget we saw about
6.21 lakh CR 18.3% of growth so strong
growth both numbers here in fact even if
you look at the 6.21 lakh CR that we are
looking at this was the highest am
allocation given by the budget to any
other Ministry so defense continues to
remain strong over here and even if you
look at their expenditure to the the
Union to the overall budget so again it
has more or less remained in a 13 to 15%
of range so in this interim budget we
saw that the total spending was about
30% again going to what we can expect
going forward from this line onwards
some of the key themes that remains in
Focus one is the indigenization theme
now the defense localizing the
production will continue to benefit some
of these domestic manufacturers even
some of one of the latest comments also
came by our defense minister rajat Singh
where in our defense manufacturing has
gone up over 177% to about 1.26 lakh CR
in fy4 this continues to support the
make in India theme it said that the
make in India continues to reach to New
mil stes and similar lines we can expect
some more reforms or more initiatives to
support this growth in the make it India
theme going forward as well other than
that even if you look at the defense
exports now defense exports we are
seeing that the sectoral exports have
jumped to about 50,000 CR that's what
the rajat sing's plan is to take the
exports number to 50,000 CR by FY 28 to
29 so if you look at the current exports
that is about 21,000 CR a 3X jump from
fy21 level just let's just pull up a
chart to understand how the exports have
done yeah so if you look at the exports
51% growth 24% growth 32% growth so
there's no stopping these exports so
similar lines we can export more reforms
more policy initiatives for supporting
the kind of um outline that the
government the defense minister has
given for these and how this would
continue to benefit the defense players
now the last now the last one that we
need to focus on is the higher
government contracts for acquiring these
new weapons aircraft warship and other
military equipment as well so with these
again if there are more government
contracts with this the top listed B
players are to benefit we can just look
at the order book and get a sense now H
has 94,000 CR of an order book while if
you look at something like a garden
reach ship Builders 22,000 CR of an
order book wherein their book to Bild
ratio is about six over six times so
this shows about healthy Revenue growth
visibility also going forward so again
now the focus remains on how these
contracts increase over the period and
how the companies can um benefit from
these increasing orders so back to you
Samina the defense continues to remain
on a strong footing it has generated
significant wealth and Us in fact as we
speak as well defense stocks continue to
be on the buy list of a number of large
proces as well in fact namura recently
emphasized on India's defense sector
projecting a substantial ordering
opportunity of $138 billion spanning for
f524 to f532 the forecast is underpin by
increasing demand for advanced defense
Equipment Technology Services signaling
strong growth potential for the sector a
well to begin with we've got Amit
Mahajan director of Faris defense who
joins us to tell us what his wish list
is as we go into the budget Amit morning
thanks aan for joining us Amit we live
in exciting times um I mean if you're an
investor buying these defense stocks
obviously you're laughing your way to
the bank you are at the center of all
the activity and excitement uh the
defense sector has witnessed uh you want
to start by telling us what's on your
wish list a lot has changed in the last
few years for sure but as we look ahead
into the next 5 to 10 years what do you
expect from this
budget Samina firstly thank you for
having me over it's always a pleasure
talking to you uh the defense sector is
is slated for an alltime high not just
what you see right now but even looking
at the future as to what to expect from
this sector I think uh the days have
just started this is just the dawn uh
there is a huge huge big big long long
day with a good Sunshine awaiting us um
why I don't know whether uh you could
you could analyze from the last four
five years of analysis uh that your team
did
uh why this has increased in in favor of
the defense sector you have to
understand the geopolitical scenarios
across the world today India although
has almost all the countries in the
world as their allies it is imperative
for us to be a
self-reliant country when it comes to
Critical Defense Technologies now this
is something which I think is an
emphasis as an underline uh message that
uh the country
and the government is trying to give to
uh the industry that now it is the time
that we step up we we start investing
into this and so will the business be
offered so you see the budget
allocations you see the growth in the
last three years looking at the
geopolitical scenario this is this is
the roadblock this is a fundamental uh
Stone which is being laid for a much
much bigger outlay in defense this is
this is a very very encouraging sign uh
it is going to make us not just
self-reliant but it is also going to
create us as a technology Hub when it
comes to cutting a technology because
defense and space always drives the
technology segment this is where we will
start leading and be recognized
worldwide as a technology sector a
technology Hub in the whole uh spectrum
of things right it's always good talking
to you Amit great to get perspective but
let's get specific now I and you've said
this to me as well time and again that
it's the favorable government policies
that will spurt or feed growth for your
sector and for your company what are
these policies that we're talking about
where do you think the trust should lie
should it be an R&D should it be on
encouraging uh you know private
companies to compete with psus should it
be encouraging and making India far more
competitive in the global Marketplace so
take one at a time and tell me what your
expectations are in terms of policies if
it's R&D where do things stand and what
should be done I think a small step
towards the R&D uh I if I may call it as
U privatization of development in
defense Technologies this step when they
put a mandate of 25% of the R&D done by
drdo has to be done by the industry I
think it was this was a small step in
the direction of what they want to
achieve at the end of it all today if
you look at Dr a lot of R&D happens
there amazing brains of our country when
it comes to defense engineering and
Technologies they work in the dro now
when we are taking a 25% pie of such a
big development activity this is a big
big big uh opportunity for the industry
because industry you you have to
understand that the industry is focused
on delivering and then generating
revenues and you know clocking all the
finances making sure that the working
capital is in place and you know doing
all the all the things that are required
for the business now when this industry
is expected to develop Technologies all
by themselves under the guidance of drdo
this is a shift of mindset for a
businessman now this when when a
businessman start looking at development
and start doing
development uh you just see the effect
not now but maybe a couple of years from
now that when an industry is get AED up
to do developments at the rate of much
faster than drdo but at the technology
Readiness as what drdo is the future is
going to be very very bright this this
will make sure that uh we are
decentralizing the development in
defense Technologies this I I would
expect um uh an incentivization of this
particular activity I would I had
mentioned this earlier also that
development linked incentive is
something that will be great for an
industry like defense and this is
something which I would wish for when it
comes to uh development and R&D when it
comes to looking at maybe the PSU
competing with the you know the dpsu
competing with the Private
Industry uh we are trading at the tier
two or tier 1.5 level uh but when it
comes to maybe see the processes the
domain expertise lie in the hands of the
BPS ISU it is not very easy to replicate
that I think a collaborative approach I
would always wish for that a dpsu works
with a large uh conglomerate in a
collaborative operator there have been
instances where they have worked
together uh they have there have been
the rohini radar I can think of Akash
missile I think there are multiple
programs which have been extremely
successful where the dpsus have
collaborated with the large uh private
industries of the country and the the
the result has only been success so I
think more collaborative approach than a
competitive approach should be the way
to go and that's such a fair point right
and if you collaborate only then can you
get you know better and compete as well
in the global place and of course R&D
encouraging development seems like the
need of the a you're right you said this
to me when we spoke early this year as
well ahead of the interim budget uh but
we didn't see much getting done on that
front uh as we look ahead how do you
think uh a company like yourself or
peers right uh can compete more
efficiently in the export space in the
global Marketplace uh borders have to be
a lot more secure today I know our
exports to countries in Africa has gone
up because of the war in Ukraine uh what
do you think the government needs to do
to encourage that and make companies
like yourself a lot more competitive if
you aren't I know you already are but
what more needs to be done and what more
could be done rather
if you ask me a company like me uh doing
exports is actually not very difficult
but uh it is it is for me to choose that
catering to the domestic need where the
requirement is far more higher than my
export Market uh this is far more uh
profitable as well than an export market
and um I enjoy a preferential treatment
here in in serving the domestic industry
my plan a always will be to First make
sure that I'm satisfying the domestic
requirement in defense when it comes to
um all the platform when it comes to
Army Navy as well as on Air Force I will
look at exports even if you ask me today
we are export ready but I will look at
exports not for components I would not
look at uh India to be an export Hub of
components what we are today uh
embarking upon by development being
offloaded to Industries is we are
preparing ourselves to be a much
significant player when it comes to
defense technology when we start
delivering platforms I would always want
to dream that India exports a submarine
to another country rather than you know
exporting a small part of a submarine to
another country so this is where we
should be looking at when that happens
like you you just want to take an
example of a country like USA they
deliver platforms and you just imagine
the pull that uh a delivery of a
platform by a country like USA to an XYZ
country the whole industry the the pool
gets created it benefits from the large
segment to the smallest smmes working
for that particular industry it
generates a great amount of pull we have
started doing this in certain areas I
think in radar programs we've already
started and I think brahmos missile is
one classic example as to how we are
exporting a larger platforms I think a
similar uh thrust on various other
segments this will create a great great
opportunity for the domestic industry oh
it's exciting times we live in uncertain
but nevertheless very exciting times
good luck and hopefully some of those
fact uh you know points you mention
comes true in this budget we'll
hopefully catch you around budget time
again and good luck with earnings as
well we have hasid kardia who joins in
Nara Capital to talk to us about what
his expectations are from budget 2020
2425 hi asid thank you for joining us
has sorry we were in a conversation with
Paris defense uh but just uh coming to
you now it's all eyes on the budget and
one sector that's created enormous
wealth has been the defense sector in
your opinion in your expectation what is
going to be the defense outlay this
budget do you expect an increase uh from
what we saw between the in and now
hasit I think you're on
mute are you able to hear me now now I
can yeah okay so basically I expect the
uh defense capital budget to be stable
at 1.72 lakh I don't expect any increase
as far as the budget is concern but
there could be a allocation made on a
difference between what we pay for
Indian Navy between the Army and the Air
Force so there could be some jugy within
uh the within the Armed Forces but the
overall budget what I expected to be uh
stable uh so you are saying that most of
these defense funds would be going into
Indian Navy Army and Air Force is that a
fair
expectation yes absolutely has also uh
you know we were talking of Paris
defense just before we got into this
conversation with you
and he was telling us about how it is
important for those vertical or those
companies to see the government
encouraging and incentivizing R&D how
important do you think is this as an
expectation and do you think it's a fair
expectation that could potentially be
fulfilled in this
budget yes I think it's a very fair
expectation and we have been not
investing much in the R&D side it was
only largely drdo who was uh you know
putting more of efforts on the R&D and
now over last few years uh the ministry
of Defense has started lot more uh
activities uh to fund some of the
startups uh so there's a technology
Development Fund uh they have also
invested in that and there is no fund
allocation being given uh to these kind
of uh Investments within make one make
two projects where the government is
funding helping private sector to work
with them and develop products so uh
there is this initiative which is uh
taken uh to ramp up the R&D and if you
look at the overall budget allocation
towards R&D and that is also come to an
alltime high in the interim budget it
came to around 25,000 cres this number
let's say five years back or close to
around 18,000 so there has been a rise
as far as the R&D budget is concerned
how should ship Builders or companies
like Garden reach coach and shipyard
Mount dogs of course not too many
private players in the ship building
space drones uh the likes of a power's
defense as Zen technology aircrafts AGL
uh case in point and cyber I believe
that's the other uh emerging uh you know
space that we've been talking about
these stocks or listed companies in the
space have had an exceptional dream run
over the last few months and the last
month especially has been phenomenal at
this juncture if you're not expecting an
increase in capital outlay what
companies do you think could benefit
most through this budget
announcement so most company so so
budget is likely going to be more
shifted towards uh the Navy as well as
the Air Force so any companies who have
products or components in this
particular space is likely to see more
benefit and there's also some investment
which will be going towards drone as
well as counter drone system so any
companies within the space would benefit
so just to give names on the Air Force
side it will largely be Hindustan
aeronautics who will get the benefit as
far as navy is concerned uh we are
expecting some imports to also happen
for the Indian Navy side uh which will
largely be related to the Rafal M and
also to the uh drone side of it uh so
ship building companies on the radar
which can benefit from the domestic
orders could be mesg dog followed by kin
Shipyard there's also a policy
announcement which we can expect on the
ship building and Ship Repair side uh
under the maritime India Vision 2030
document so that should help companies
on coaching Shipyard as well as gardened
ship Builders to benefit on the
commercial ship building side so that is
what we expect to uh see from the budget
as well as uh post budget you know hasit
as expected all the companies mentioned
by you are dpsu right anything in the
private uh amongst the private players
in the defense space that you're
constructive on because you do have you
have Optics when it comes to Paris
defense you have Zen technology that's
got drones can those also stand to gain
you think anything in the private sector
place yes if if you look at the primary
beneficiaries are always the psus but
the secondary level of benefit which
supplies these component and which are
part of the ecosystem are the private
defense companies and the companies
which uh I think would benefit one is
par defense other is Zen Technologies
data pattern um and estra microwave are
some of the names which which we like
within the private defense pie and also
on the platform side it will be bat
Forge it's very LLY harit do you feel
like the recent rally is Justified uh
because it is a budget rally right uh
and these prices are well valued as we
see it or do you feel like uh some of
these counters have ran up ran ahead of
themselves and it's buying them
pre-budget may not be
advisable uh so so uh one thing to say
is uh definitely evaluations are high
but they are still under a reach if you
look at the domestic Cap Code companies
their multiples are significantly higher
than what uh the defense uh pack is
trading in so there is an upside uh
which could be seen from here on as well
uh however this budget really is largely
uh you can play with but post that how
the allocation happens within the
defense budget and what is the pipeline
which would be converted into order INF
something which To Be watchful and you
have to take a decision on that right
thank you very much har would have loved
to have a more extended chat with you
but hopefully closer to the budget we'll
try and connect back with that we're
completely out of time on this edition
of budget trades thanks for watching
stay tuned to NTV profit
[Music]
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