Mazagon Dock, Garden Reach, Paras Defence And Others Gain As Government Clears Mega Acquisitions

The amendments in the Defence Acquisition Procedure, 2020, were also cleared by the government to promote procurement of advanced technologies from startups and micro, small and medium enterprises under the Innovations for Defence Excellence and Technology Development Fund schemes.

The total share of domestic procurement has seen a phenomenal improvement from 54% in fiscal 2019 to 75% five years later and is expected to improve further, Antique Stock Broking Ltd said in a note. The new proposal is a tremendous opportunity for local defence manufacturers like HAL, BEL, Mazagon Dock, GRSE and other defence players, it said.

Companies like Bharat Forge Ltd, Mahindra Defence Ltd, Tata Advanced Systems Ltd. are likely to benefit from the planned procurement of future-ready combat vehicles, while Bharat Electronics Ltd. stands to gain from air defence fire control radars.

Defence stocks recently witnessed a dip after a phenomenal run-up in the last two years. Reports of the government's acquisition plan led to a jump on Tuesday.