Defence Stocks: Following Operation Sindoor, investors drove significant gains in defense companies such as Bharat Dynamics (BDL), Bharat Electronics (BEL), and Ideaforge Technology, fueled by hopes of continued demand. Analysts believe some defense stocks still offer attractive long-term investment opportunities, although the recent surge has pushed valuations higher.
Operation Sindoor Impact:
India launched Operation Sindoor on May 7 to retaliate for the April 22 terror attack in Pahalgam, which killed 26 people, by bombing terror camps in Pakistan and Pakistan-occupied Jammu and Kashmir. India’s operation demonstrated the strength, efficiency, and effectiveness of its defense hardware. Experts noted that the confrontation between India and Pakistan increased global awareness of the quality and importance of defense systems made in India, potentially leading to more international orders in the coming years.
Defence Stocks Boom:
Since May 8, defense supplies have increased by 5–40% due to the anticipation of strong demand. Since then, the stocks of Ideaforge Technology, Misra Dhatu Nigam, Zen Technology, Data Pattern, BDL, BEL, Bharat Forge, BEML, and Hindustan Aeronautics (HAL) have increased by over 10%.
Are Defence Stocks better for Long-Term?
Given India may raise its defense budget in the coming years due to security concerns, some analysts consider the sector a solid long-term investment despite inflated valuations. Experts emphasize that, although stocks currently trade slightly above fair value, profits growth similar to that seen in Q4FY25 justifies these valuations.
Also Read: 5 Best Stocks for High Returns and Strong Growth in 2025
Disclaimer: This article is for educational purposes only. The views and suggestions presented are based on expert opinions. It is advisable to consult certified professionals before making any investment decisions.
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