Defense stocks showed a third consecutive session. On October 3, shares of Solar Industries, PTC Industries, Estra Microwave, Data Pattern and Azad Engineering jumped up to 11 per cent. The reason for this is the beginning of coverage of Goldman Sachs on 8 Defense Kapanis. Goldman Sachs has started coverage of these companies in view of the increase in defense exports, focus on focus on making defense equipment in the country and increasing expenses on defense.
Private defense companies will be fast growth
Goldman Sachs It has said in its report that India has been a major importer of Equipments. India’s expenditure on defense has also been very high. Despite this, investors have been interested in shares of government defense companies, while private defense companies have been prone to good growth. These companies have access to Advance Defense Technologies. The growth of these companies can be more than government defense companies.
Increasing expenses on defense in the world will benefit
The Brokej firm has said in its report that the CAGR of private defense companies per share (EPS) may be 32 per cent, while the CAGR of EPS of government defense companies is expected to be 13 per cent. In this report, it has said that the expenditure on defense is increasing worldwide, which is expected to benefit India’s private defense companies. There are many companies in the private sector, which have performed well.
Target of more than 2000 for Azad Engineering
The shares of Azad Engineering showed a huge jump on 3 October. It climbed 6.95 to close at Rs 1,723. In the last six months, this stock has climbed around 27 percent. This stock had climbed 8 per cent at one time. The reason for this is the report of Goldman Sachs, stating that the EPS growth of stock may remain more than the growth of foreign defense companies. This report said that good growth of India’s defense companies may continue till FY33. Goldman Sachs has advised to buy Azad Engineering shares. A target price of Rs 2,055 has been given for shares.
These two defense shares do wonders
Shares of Solar Industries and PTC Industries also rose on 3 October. Solar industry shares rose 3.52 per cent to Rs 13,845. In the last six months, this stock has risen 22.59 percent. PTC Industries shares climbed 5.75 per cent to close at Rs 16,600 on 3 October. This stock has climbed about 18 percent in the last six months. Goldman Sachs has said that solar industries are in a business in which the entry of new players is difficult. On the other hand, PTC Industries is installing itself as major aerospace grade titanium and superloy player.
Estra microwave climbed more than 11 percent
Goldman Sex has also started covering Estra Microwave, Data Pattern and India Electronics. He has advised to buy these shares. On October 3, these shares also saw a good rise. The shares of Astra Microwave saw the highest 11.21 per cent rose. This stock has risen 59.30 percent in the last six months.