Defence stocks like Hindustan Aeronautics, Bharat Dynamics, Bharat Electronics and others are in focus after the government granted an extension in the exemption of customs duty on the imports of certain parts. Initially set to expire on July 1, 2024, the exemption has now been extended for five years, until 2029. So how does it impact the stocks?
What does the extension of exemption imply?
The exemptions cover categories including military helicopters with an empty weight of more than 3,500 kg, associated role equipment, ground support equipment, ground handling equipment, and other specified categories.
In the Union Budget of 2019, Finance Minister Nirmala Sitharaman proposed exempting defence equipment not manufactured in India from customs duty to “secure our borders.” This move aligns with the ongoing focus on Public Sector Undertakings (PSUs) and the hope of securing more orders in the medium to long term.
Defence Minister Rajnath Singh has set an ambitious target for India’s defence exports, aiming for Rs 50,000 crore by 2028-2029. In the financial year 2024, defence exports reached a record high of Rs 21,083 crore.
As a result, defence stocks have been in focus throughout the year, reflecting the positive sentiment around PSUs and the sector’s growth potential.
Here are how major defence stocks are performing ahead of Budget 2024
Hindustan Aeronautics
In terms of stock performance, HAL shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 2% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 86.46%, indicating a strong upward trend.
Year-to-date, HAL shares have surged by 88%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 179.57% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
Bharat Electronics
In terms of stock performance, BEL faced a mixed bag of results. In the last month, the stock has given negative returns at 3.77%, showcasing a modest down trend. But the stock bucked the trend and have given positive returns of 66.18% in last 6 months.
Year-to-date figures continued in positive territory, with stock yielding over 67%. However, over the last twelve months, the stock delivered an impressive return of over 148%.
BEML
The shares of BEML have demonstrated mixed returns across various time intervals. In the last month, the stock delivered a negative return of 4.37%. Over the past six months, it exhibited strong momentum with returns of 57%, indicating a robust performance.
Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 60%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 180% in the last year.
Bharat Dynamics
BDL shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 2%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 89.37%, showcasing the stock’s resilience and upward momentum.
Year-to-date, BDL shares have surged by 88%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 187%.
Mazagon Dock Shipbuilders
In terms of stock performance, Mazagon Docks shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 34.36% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 91.16%, indicating a strong upward trend.
Year-to-date, Mazagon Dock shares have surged by 93%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 239.54% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
Cochin Shipyard
Cochin Shipyard shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 12.18%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 231.38%, showcasing the stock’s resilience and upward momentum.
Year-to-date, Cochin Shipyard shares have surged by 233%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 679%.
Data Patterns (India)
When assessing the stock performance, Data Patterns stands out with impressive returns. In the last one month, the shares delivered a positive return of 1.68%, maintaining resilience. Over the past six months, the stock exhibited strong performance, recording substantial returns of 64.27%.
The year-to-date trajectory remained positive, showcasing an 66% increase in value. Looking at the broader picture, the stock’s robust performance over the last year is evident, with returns exceeding 60%.
Paras Defence and Space Technologies
In terms of stock performance, Paras Defence shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 54.45% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 89.64%, indicating a strong upward trend.
| Stock Name | 1-Month Returns | 6-Months Returns | YTD Returns | 1-Year Returns |
| Hindustan Aeronautics | 2% | 86.46% | 88% | 179.57% |
| Bharat Electronics | -3.77% | 66.18% | 67% | 148% |
| BEML | -4.37% | 57% | 60% | 180% |
| Bharat Dynamics | 2% | 89.37% | 88% | 187% |
| Mazagon Dock Shipbuilders | 34.36% | 91.16% | 93% | 239.54% |
| Cochin Shipyard | 12.81% | 231.28% | 233% | 679% |
| Data Patterns (India) | 1.68% | 64.27% | 66% | 60% |
| Paras Defence and Space Technologies | 54.45% | 89.64% | 91% | 131.51% |
| Mishra Dhatu Nigam | 2.95% | 11.65% | 13% | 57.78% |
| Apollo Micro Systems | 1.20% | -9.72% | -10.95% | 106.78% |
| ideaForge Technology | 14% | -5.70% | -6.95% | -40% |
| MTAR Technologies | 3% | -17% | -16.45% | -5% |
Year-to-date, Paras Defence shares have surged by 91%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 131.51% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
Mishra Dhatu Nigam
Mishra Dhatu shares have delivered positive returns across various time frames. Over the last month, the stock has shown a positive return of 2.95%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 11.65%, showcasing the stock’s resilience and upward momentum.
Year-to-date, Cochin Shipyard shares have surged by 13%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 57.78%.
Apollo Micro Systems
In terms of stock performance, Apollo Micro Systems faced a mixed bag of results. In the last month, the stock tried to secure positive returns at 1.20%, showcasing a modest upward movement. Contrastingly, the past six months were challenging, with the stock experiencing negative returns of 9.72%, indicating a period of decline.
Year-to-date figures continued in negative territory, depicting a decline of -10.95%. However, over the last twelve months, the stock managed to maintain positive returns of 106.78%, highlighting its resilience in the longer term.
ideaForge Technology
In terms of stock performance, ideaForge faced a mixed bag of results. In the last month, the stock tried to secure positive returns at 14%, showcasing a modest upward movement. Contrastingly, the past six months were challenging, with the stock experiencing negative returns of 5.70%, indicating a period of decline.
Year-to-date figures remain in negative territory, showing a decline of -6.95%. Over the last twelve months, the stock has continued to fall, delivering negative returns of 40%.
MTAR Technologies
In terms of stock performance, MTAR Tech faced a mixed bag of results. In the last month, the stock tried to secure positive returns at 3%, showcasing a modest upward movement. Contrastingly, the past six months were challenging, with the stock experiencing negative returns of 17%, indicating a period of decline.
Year-to-date figures continued in negative territory, depicting a decline of -16.95%. Over the last twelve months, the stock has continued to fall, delivering negative returns of 5%.
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