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The third Positive Indigenisation List (PIL), sixth PIL for defence goods, further attests to the Defence Ministry’s continued pursuit of self-reliance in defence manufacturing, as also to minimizing imports and developing small and medium private defence companies, said analysts at brokerage Elara Capital in a note.
They remain positive on the indigenization story and are encouraged by rising exports pie. The brokerage believes that small and medium private defence stocks such as Data Patterns, MTAR Technologies, Paras Defence, Astra Microwave, Dynamatic Technologies, Taneja Aerospace, etc would likely emerge as key beneficiaries.
The Ministry of Defence (MoD) has approved the sixth Positive Indigenization List (PIL) of 780 items, comprising line replacement units (LRUs)/sub-systems/components, on 28 August 2022. This step will further curtail defence imports.
The indigenous development of these LRUs/Sub-systems/components will bolster the economy and reduce the import dependence of DPSUs. In addition, it will help to harness the design capabilities of domestic defence industry and position India as a design leader in these technologies, the ministry said in a release.
The list comprises 360 items from Hindustan Aeronautics (HAL), 134 items from Mazagon Dockyard, 111 items from BEML, 69 items from Bharat Electronics (BEL), three items from Garden Reach Shipbuilders & Engineers, two items from Bharat Dynamics (BDL) and 101 items from other unlisted DPSUs. The indigenization timeline spans December 2023-28 and Elara expects small and medium domestic private companies to be major beneficiaries.
The brokerage house has Buy tag on Garden Reach Shipbuilders & Engineers with a target price of ₹400. Whereas, it has Accumulate ratings on Hindustan Aeronautics and Bharat Dynamics shares with target prices of ₹2,650 and ₹960 respectively and has reduce recommendations on Bharat Electronics (TP: ₹305) and BEML (TP: ₹1,865).
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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