As other sectors dominated by PSU companies come into limelight, defence stocks which ignited the re-rating of PSU stocks have moved into consolidation mode for some time. The question is whether the business is in consolidation mode or not, the answer is tilting toward no. It appears the underlying developments in the sector continue to be going at the same pace or rather even more. Allowing 100 % FDI in space related industries, is probably an indication that focus on defence and related sectors continues. As things are shaping up, it appears the exports would also become a focus area.
Mihir Vora, CIO of Trust Mutual Fund, discusses the tendency of investors to overestimate short-term and underestimate long-term growth in high-growth sectors. He highlights the potential of PSU defence, railways, and manufacturing sectors in India, while cautioning about the risks of global commodities and the possibility of Chinese currency devaluation.
Indian stock market to focus on defense stocks post DAC meeting allocating ₹80,000 crore order. Experts foresee value buying for defense companies with strong CAPEX on Monday
Over the course of three years, shares of Solar Industries India have experienced a significant surge, escalating from ₹1,083 per share to ₹6,875 per share, translating into an impressive 535% return for investors.