Latest news with #DPSUs
Time of India
3 days ago
- Business
- Time of India
Officers from 10 DPSUs, private organisations join IIM-Vizag's defence MBA
Visakhapatnam: Amid India's push for increased defence production, IIM-Vizag has launched its novel and first-of-its-kind modular MBA programme for officers in the defence sector. Approved by the dept of defence production under the ministry of defence, 37 officers from 10 defence public sector undertakings (DPSUs), Naval Armament Depot, and Geomarine Dynamics India Ltd have enrolled for the programme. The 10 DPSUs include Yantra India Ltd, Troop Comforts Ltd, Munitions India Ltd, Mishra Dhatu Nigam Ltd, India Optel Ltd, Hindustan Shipyard Ltd, Advanced Weapons and Equipment India Ltd, Armoured Vehicles Nigam Ltd, BEML Ltd, and Bharat Electronics Ltd. Hindustan Shipyard Ltd CMD, Commodore Hemant Khatri (retd) said he has been noticing a profound shift in the mindset of Indians. "Previously, there might have been a sense of impossibility or hesitation. Now, however, there is a burgeoning confidence and self-belief, fostering an attitude of 'it is possible, and we can do it'. This fundamental change is evident in a newfound willingness to invest, experiment, and innovate – the driving force propelling India towards its future aspirations. This conviction is crucial for the nation's continued progress," he said. Explaining India's economic turnaround and its progress across various sectors, including railways, telecom, digital transactions, chip manufacturing, defence production, etc., Khatri said that today's youth are expected to be the leaders who will shape India in 2047. "This generation has the potential to propel the nation forward, transforming it into a developed country and fulfilling the aspirations of 1.4 billion people. The mantle of leadership will rest on their shoulders. In 2014, India was ranked the 11th largest economy in the world and now it stands as the fourth largest economy. This is a testament to the innovative spirit of its people. I urge the participants to foster an innovative India, lead in research and development, and drive decisive, transformative progress," he added. IIM-V director Prof M Chandrasekhar reflected on the personal significance of the programme. "This programme is particularly nostalgic for me, as I fondly recall joining HAL in 1983 as a young trainee. I later moved to L&T. Defence sector experience, therefore, remains very dear to me, it is a solid foundation upon which I built my career. Today, India's defence sector is no longer merely tied to budget cycles or geopolitical events; it has become a strategic growth sector with sustained expansion. Industry experts estimate India's defence capital outlay will grow by up to eight percent annually over the next five years, translating into defence procurement worth over $130 billion or approximately 11.1 lakh crore. A case in point is the performance of defence mutual funds and the Nifty India defence index, both of which have outpaced the broader market, reflecting strong investor trust and confidence in defence stocks," he said.
Mint
3 days ago
- Business
- Mint
Will the bull run in defence stocks continue? Long-term growth seen, but valuations flash warning signs
Defence stocks have been on a blistering rally, with the NSE Defence Index soaring 20 percent in the last one month, vastly outperforming the Nifty 50, which rose by only about 1 percent during the same period. With India sharpening its strategic focus on indigenous defence manufacturing amid global geopolitical tensions, many investors are wondering: Will the bull run in defence stocks continue? While the long-term fundamentals remain strong, market experts warn that valuations have already priced in much of the near-term earnings growth. The bull case for defence stocks is rooted in a larger geopolitical and policy shift. According to Omniscience Capital, which manages a defence-focused smallcase, the Indian government is likely to ramp up defence spending from the current ~2 percent of GDP to 3–4 percent over the next decade. With India expected to become a $10 trillion economy by 2035, this would imply an annual defence budget exceeding USD 300 billion, or ₹ 30 lakh crore—translating to a 16–17 percent CAGR in defence expenditure over the next ten years. Omniscience Capital's report, 'Operation Sindoor: An Inflection Point for Bharat's Omni Defence Strategy', argues that the recent military and security operations have highlighted the need for a robust, future-ready defence infrastructure—not just to protect borders, but also to secure India's digital ecosystems, trade routes, and overseas strategic assets. India's domestic defence production crossed ₹ 1.4 lakh crore in FY25, with DPSUs (Defence Public Sector Undertakings) contributing around ₹ 1.1 lakh crore, or 78 percent. Of this, ₹ 90,000 crore came from 8 listed DPSUs, forming 66 percent of the total DPSU output. The government now aims to double the total defence production to ₹ 3 lakh crore by 2029. Even assuming DPSUs maintain a 60 percent share, their combined output would need to grow at 18 percent CAGR, hitting ₹ 1.8 lakh crore by 2029. Analysts project that the turnover of listed DPSUs will grow by 18 percent in FY26 and 22 percent in FY27, while 9 unlisted DPSUs are estimated to generate over ₹ 20,000 crore in FY26 alone. Private players are also expected to play a larger role, diversifying the sector's investment potential. However, while the sector's structural growth story remains intact, concerns around high valuations are surfacing. The median trailing P/E of listed DPSUs stands at 57, with forward P/E for FY26 and FY27 at 45 and 36, respectively. Valuations are even steeper for private defence companies, making investors vulnerable to corrections if expectations aren't met. Dr. Vikas Gupta, CEO of Omniscience Capital, said, 'The future of India's defence sector is undoubtedly bright. However, we urge investors to remain valuation-conscious. Much of the high growth has already been factored into stock prices, particularly in the short term.' Despite these cautionary signals, experts argue that the rally has legs over the long run. India's strategic ambitions—to become the world's third-largest economy by 2027–28 and a 7–8 percent contributor to global GDP—will require significant defence investment. The Indian Armed Forces are under pressure to modernize, especially with neighboring countries likely to boost their own defence spending in response to India's growing capabilities. Moreover, a strong fiscal position and global interest in India as a defence exporter could help sustain capex in the sector, while also creating tailwinds for listed players. Overall, the bull run in defence stocks has been driven by compelling macro themes: rising geopolitical risk, India's focus on self-reliance, and ambitious spending targets. However, with valuations running ahead of fundamentals in many cases, the question for investors is no longer whether defence is a growth story—it is how much of that growth is already in the price. Experts suggest a balanced approach: remain invested for the long-term transformation underway, but be selective and valuation-conscious in the short run. The next leg of the rally may belong not to the sector as a whole, but to the well-positioned companies with sustained earnings visibility. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
4 days ago
- Business
- Hans India
Defence PSUs likely to clock 18 pc growth as India beefs up armed forces
Mumbai: India will gradually increase its defence budget as a percentage of GDP from around 2 per cent at present to 3 per cent or even 4 per cent over the next decade, according to a report released by Omniscience Capital on Monday. With a $10 trillion GDP, the defence budget is expected to grow to more than $300 bn or around Rs 30 lakh crore. This implies a 16-17 per cent annualised growth till 2035, the report observes. The total output of the defence PSUs is expected to double to Rs 1.8 lakh crore by 2029, indicating a growth of 18 per cent over the next four years, according to the report. The report further states that Operation Sindoor has triggered a renewed focus on defence, vigilance, and strategic preparedness to attack enemies and safeguard not only our borders and citizens but also the critical resources, economic and trade infrastructure, and the digital ecosystem. As per the report, the mid-term target for domestic defence production is set at Rs 3 lakh crore by 2029. In FY25, domestic defence production crossed Rs 1.4 lakh crore, of which 78 per cent was contributed by the defence PSUs at around Rs 1.1 lakh crore. The listed defence PSUs accounted for more than Rs 90,000 crore of this, accounting for 66 per cent of the total defence PSUs' share. This growth outlook gets revalidated if one looks at the analyst estimates for the next couple of years. The total turnover of 8 listed defence PSUs is expected to grow at 18 per cent and 22 per cent for FY26 and FY27, respectively. Nine unlisted defence PSUs combined are expected to report a total turnover in excess of Rs 20,000 crore in FY26, according to the report. According to the report, in the long term, the defence pensions, which account for around 25 per cent of the total defence budget, currently, and the largest part of the expense under the salary head (currently around Rs 2 lakh crore), are expected to grow at a slower pace. The expected annualised growth of the capital budget and supplies would be even higher, potentially at levels above 20 per cent. The cumulative capex over the next 10 years could range from Rs 50 lakh crore (at 2.4 per cent in 2035) to Rs 64 lakh crore (at 3 per cent in 2035). It also expects the Rs 3 lakh crore domestic defence production target for 2029 announced earlier might be revised upward and exceeded. The report notes that while the growth potential of the defence sector is unmistakably robust, the TAM (total addressable market) is large, and the growth rates are likely to remain high for decades. However, the investors need to pay attention to the valuations. The median trailing price to earnings (P/E) multiple of the 8 listed DPSUs is 57. The forward median P/E for FY26 and FY27 is at 45 and 36, indicating that the high growth potential is significantly priced in. For some of the private sector names, the multiples are even higher, and hence, investors are advised to be extremely cautious while allocating capital to specific names at current levels.
United News of India
26-05-2025
- Business
- United News of India
Rajnath Singh reviews performance of eight DPSUs in meeting with CMDs
New Delhi, May 26 (UNI) Defence Minister Rajnath Singh on Monday commended the role of the entire defence industry, including Defence Public Sector Undertakings (DPSUs), in developing platforms and technologies that demonstrated the preparedness of the Indian Armed Forces during Operation Sindoor. In a review meeting with CMDs of eight DPSUs at South Block, here, Rajnath emphasised that the government, led by Prime Minister Narendra Modi, remains committed to strengthening the defence industrial base and enhancing the competitiveness of the DPSUs, a Defence Ministry statement said. In view of the prevailing geopolitical scenario and the recent developments, Rajnath Singh directed the DPSUs to enhance their production on latest technologies with more focus on research and development in the emerging fields of modern warfare. During the meeting, Secretary (Defence Production) Sanjeev Kumar presented the growth statistics of the DPSUs highlighting their steadfast performance. The value of production is poised to be more than Rs 1,40,000 crore for Financial Year 2024-25, out of which around 78 percent would be contributed by DPSUs. The Minister, while appreciating the increase in the value of production by DPSUs, exhorted them to focus on timely delivery of products to the Armed Forces as well as their other customers. He emphasised on the role of DPSUs in increasing exports and directed them to increase their focus on better marketing of their products. Rajnath Singh congratulated Hindustan Aeronautics Limited (HAL) on getting the Maharatna status and Mazagon Dock Shipbuilders Limited (MDL) on getting the Navratna Status. CMDs of eight DPSUs - HAL, MDL, Bharat Electronics Limited, Bharat Dynamics Limited, Mishra Dhatu Nigam Limited (MIDHANI), Garden Reach Shipbuilders and Engineers Limited (GRSE), Goa Shipyard Limited (GSL) & BEML Limited - presented the cheques for interim dividend on equity shares held by the Government for Rs 2,138 crore for the Financial Year 2024-25. UNI RBE RN
Time of India
26-05-2025
- Business
- Time of India
Operation Sindoor: Rajnath Singh lauds defence industry's role in making platforms that proved military preparedness
Defence Minister Rajnath Singh on Monday commended the role of the entire defence industry, including DPSUs , in developing platforms and technologies that demonstrated the preparedness of the Indian armed forces during Operation Sindoor . Heads of eight major DPSUs, including Hindustan Aeronautics Limited , Mazagon Dock Shipbuilders Limited and Bharat Electronics Limited , "presented the cheques for interim dividend on equity shares held by the government for Rs 2,138 crore for the financial year 2024-25", the defence ministry said. Singh received the first interim dividend cheque of Rs 1,197.75 crore for financial year 2024-25 from CMD, Hindustan Aeronautics Limited, D K Sunil in New Delhi. Secretary (Defence Production) in the ministry, Sanjeev Kumar was also present on the occasion. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Crossout 2.0: Supercharged Crossout Play Now Undo Singh held a review meeting with CMDs of the eight Defence Public Sector Undertakings (DPSUs) at South Block here. He commended the role of the entire defence industry, including DPSUs, in developing platforms and technologies that "demonstrated the preparedness of the Indian armed forces during Operation Sindoor", the ministry said in a statement. Live Events The defence minister emphasised that the government, led by Prime Minister Narendra Modi, remains committed to strengthening the defence industrial base and enhancing the competitiveness of the DPSUs. In view of the prevailing geopolitical scenario and the recent developments, Singh directed the DPSUs to enhance their production on latest technologies with more focus on research and development in the emerging fields of modern warfare. During the meeting, the secretary (defence production) presented the growth statistics of the DPSUs highlighting their steadfast performance. "The value of production is poised to be more than Rs 1,40,000 crore for financial year 2024-25, out of which around 78 per cent would be contributed by DPSUs," it said. Singh appreciated the increase in the value of production by DPSUs, however, he exhorted them to focus on timely delivery of products to the armed forces as well as their other customers. He emphasised the role of DPSUs in increasing exports and directed them to increase their focus on better marketing of their products. The defence minister congratulated HAL on getting the Maharatna status and Mazagon Dock Shipbuilders Limited on getting the Navratna status, it said. Other DPSUs whose CMDs also presented cheques include Bharat Dynamics Limited , Mishra Dhatu Nigam Limited (MIDHANI), Garden Reach Shipbuilders and Engineers Limited (GRSE), Goa Shipyard Limited (GSL) and BEML Limited .
