Defence Stocks Soar: Can the Rally be Sustained?
Defence stocks are on a roll, with HAL leading the charge. But will the momentum last? Experts weigh in.
Defence StocksHalCochin ShipyardStock MarketInvestmentReal Estate NewsSep 03, 2024
Ratnesh Goyal, Senior Technical Research Analyst at Arihant Capital Markets, believes that momentum in the defence sector is likely to continue. He shares his views on Cochin Shipyard, advising that if you're investing for the short to medium term, set a stop loss at ₹1,800 as the stock may see more consolidation, with a medium-term target of ₹2,150-₹2,190.
Regarding HAL, Ratnesh Goyal describes it as a promising and outperforming stock with strong potential, advising investors not to panic. The company's recent order win is a significant boost to its revenue and profitability prospects.
The defence sector has been witnessing a significant rally in recent times, driven by the government's focus on indigenization and modernization of the armed forces. The sector is expected to continue to attract investor attention, driven by the government's thrust on 'Make in India' and the need to reduce dependence on imports.
HAL, in particular, has been a beneficiary of the government's defence modernization plans. The company has a strong order book and is expected to continue to receive orders from the Indian defence forces.
However, investors should be cautious and not get carried away by the rally. The defence sector is highly dependent on government orders and any changes in government policies or priorities could impact the sector's performance.
In conclusion, while the rally in defence stocks may sustain in the short term, investors should be cautious and keep a long-term perspective in mind. It's essential to do your research and consult with experts before making any investment decisions.
Arihant Capital Markets is a leading financial services company that provides research and advisory services to investors. The company has a strong team of analysts who provide expert advice on various sectors, including defence.
Hindustan Aeronautics Limited (HAL) is a state-owned aerospace and defence company based in India. The company is involved in the design, development, and manufacture of aircraft, helicopters, and aero-engines.
Arihant Capital Markets is a SEBI-registered research analyst and investment advisor. The company provides research and advisory services to investors, covering various sectors, including defence.
Frequently Asked Questions
What is driving the rally in defence stocks?
The rally in defence stocks is driven by the government's focus on indigenization and modernization of the armed forces.
What is the outlook for HAL?
HAL is expected to continue to receive orders from the Indian defence forces, driven by the government's thrust on 'Make in India'.
Should I invest in defence stocks?
Investors should be cautious and do their research before making any investment decisions. It's essential to consult with experts and keep a long-term perspective in mind.
What is the target price for Cochin Shipyard?
The target price for Cochin Shipyard is ₹2,150-₹2,190, according to Ratnesh Goyal, Senior Technical Research Analyst at Arihant Capital Markets.
What is the significance of the ₹26,000 crore procurement order for HAL?
The ₹26,000 crore procurement order is a significant boost to HAL's revenue and profitability prospects.
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