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Bharat Electronics: Motilal Oswal's Top Defence Pick Amidst Rs 13 Lakh Crore Approvals
M
Moneycontrol•05-10-2026, 12:01
Bharat Electronics: Motilal Oswal's Top Defence Pick Amidst Rs 13 Lakh Crore Approvals
- •Motilal Oswal names Bharat Electronics its top defence sector pick, citing a robust order pipeline and improved execution prospects.
- •Government approvals totaling Rs 13 lakh crore over FY25-YTD FY27 have significantly expanded the total addressable market for domestic defence companies.
- •The government is opening missile production to Indian private players and allowing DRDO to transfer technology for conventional missile systems, boosting private sector participation.
- •Despite weak defence ordering in 2QFY27, Motilal Oswal anticipates a surge as approved AoNs worth Rs 13 lakh crore move towards finalization.
- •Key monitorables include QRSAM and P75I CCS clearances, Mk1A deliveries, and AMCA announcements, particularly regarding increased private involvement.
Key Questions Answered
Bharat Electronics remains Motilal Oswal Securities' top pick in the defence sector, supported by a strong order pipeline and improving execution prospects as government approvals expand the total addressable market for domestic companies.
Total approvals of Rs 13 lakh crore over FY25-YTD FY27 have helped expand the total addressable market for domestic players, with DAC approvals alone reaching Rs 1.62 lakh crore in FY27 YTD.
The deadline for submitting the request for proposal (RFP) for the AMCA project has been shifted to October 30.
