Now Reading: ICICI Securities picks HAL among defence stocks as order approvals hit a record
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ICICI Securities picks HAL among defence stocks as order approvals hit a record
ICICI Securities picks HAL among defence stocks as order approvals hit a record
ICICI Securities has kept a structurally positive view on India's defence sector, according to NDTV Profit, pointing to the defence ministry's target of a Rs 3 trillion annual capital outlay by CY29…
ICICI Securities has kept a structurally positive view on India's defence sector, according to NDTV Profit, pointing to the defence ministry's target of a Rs 3 trillion annual capital outlay by CY29 and to a new Defence Procurement Manual 2025 expected to shorten acquisition timelines. Approvals from the Defence Acquisition Council reached an all-time high in FY26 and continued into the first quarter of FY27 at Rs 52,000 crore, and the brokerage expects order-awarding momentum to build through FY27 and FY28, particularly in aerospace, missiles, electronic warfare and drone technology. It links this to a geopolitical backdrop it says has sharpened defence-budget urgency across the Gulf. Hindustan Aeronautics is named among ICICI Securities' preferred defence stocks. Approvals are not signed contracts, and the report gives no specific contract sizes or the brokerage's valuation method.
Indian Opinion Analysis
A record pace of government approvals underpins the brokerage's optimism, but an AoN approval clears a purchase to proceed, it is not a signed order, and the gap between approvals and actual contract awards has stretched out before. ICICI Securities' preference for Hindustan Aeronautics and its named segments reflect one brokerage's reading of that pipeline, not a confirmed order book, and no contract-level detail or valuation method is given to test the call independently. The Gulf-linked demand tailwind it cites is plausible but unquantified here. Confirmed order awards through FY27 and FY28, set against this quarter's approval pace, will show whether the momentum the brokerage expects actually arrives.
Source: www.ndtvprofit.com
This brief was synthesised by AI from the source linked above.
