Multibagger Defence Stocks Astra Microwave, Azad Engg, Solar Ind are ICICI Securities 3 top picks, ahead of Q4 results

Astra Microwave Products, Azad Engineering , Solar Industries India stock terms portion person risen 100-134% during past 1 year, much gains are expected arsenic per analysts astatine ICICI Securities.  The Defence Public Sector undertakings person benefitted immensely from beardown bid flows successful the caller past and much orders are expected to autumn in. As Defence Sector PSUs arsenic Hindustan Aeronautics and others benefit, the positives are apt to percolate to backstage assemblage manufacturers arsenic Astra Microwave Products, Azad Engineering , Solar Industries India.

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Strong gains of up to 24% expected 

Despite the beardown returns seen successful FY24 analysts astatine ICICI Securities expect that determination is inactive much beingness successful the defence equities due to the fact that determination are a fig of ample orders scheduled for FY25. 

In addition, the home aerospace ecosystem would payment from the implementation of LCA Tejas Mk-1A. In airy of this, analysts astatine ICICI Securities deliberation that the Indian government's continuous propulsion for indigenization volition astir apt origin orders from Defence PSUs to scope backstage firms moving successful the defence manufacture much quickly.

ICICI Securities has urge Solar Industries with astatine people terms of RS 10,950, indicating 24% upside from existent banal prices astatine adjacent to ₹8830. 

Astra Microwave people terms astatine ₹800, indicates an upside of much than 14% from existent levels of astir ₹700 , While Azad Engineering people terms astatine ₹1600 indicates upside of astir 17% frm existent levels of banal trading adjacent ₹1364 levels. 

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Traditionally beardown Q4 to spot see beardown bid flows too

The Q4 remains traditionally is simply a beardown 4th and ICICI Securities  expect companies nether their sum to fare good . 

The expect mean gross maturation astatine 15% YoY aided by beardown execution.  The companies are expected to study bully bid inflows.  In summation  private companies person received bully export orders item analysts and they expect borderline to grow sequentially crossed each the companies, but shipbuilders.

While Bharat Electronics Ltd (BEL)  received orders worthy ₹6000 Crore dispersed implicit assorted platforms and services, Hindustan Aeronautics  orders inflows stood astatine ₹17560 Crore. Mazagon Dock Shipbuilders  A received  order for 14 accelerated Patrol vessels.

However  Solar Industries has received 2 export orders worthy ₹4440 Crore to beryllium executed wrong 3 years and this arsenic per ICICI Securities is apt to springiness a important thrust to defence gross for the company. On the aerospace front, some Dynamatic Technologies and Azad Engineering stood among important bid recipients from planetary OEMs (Original Equipment Manufacturers), highlighted ICICI Securities. These bid flows are apt to support execution astatine these companies robust.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions

Defence Stocks that person fixed multibagger returns are apt to study bully show for 4th ending MArch'2024.per

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Published: 29 Apr 2024, 05:29 PM IST