Stocks to Buy: Multibagger Solar Industries, Azad Engineering, Astra are 3 Defence sector picks by ICICI Securities

Stocks to Buy: Multibagger Solar Industries , Astra Microwave and Azad Engineering are the top picks of ICICI Securities in the Defence Sector. Solar Industries, Astra Microwave, Azad Engineering share price have risen 147-217 % in last one year giving Multibagger returns to investors.

We continue to remain positive on the sector, as the order pipeline for most of the companies remains healthy and managements have guided for 15–25% revenue growth while maintaining the margins for FY25, said ICICI Securities in its report.

ICICI Securities also has a BUY rating on Dynamatic Technologies share Price with a target price of ₹10,250. However, they await the award of the Pinaka order, which they believe is in advanced stages; Solar Industries share price is also the likely beneficiary. Also, they await the orders for QRSAM and MRSAM (Quick reaction and medium range Surface-to-Air Missiles ) which are likely to benefit Bharat Electronics, Bharat Dynamics and and Astra Microwave share price.

The ordering activity has been catching pace in last one month post the completion of Lok Sabha Elections.

Key developments in the month of June’2024 included, First Tejas Mk-1A aircraft is expected to be delivered in Jul’24.while Hindustan Aeronautics ltd also has received Request for proposal from Ministry of Defence on the procurement of 156 LCH Prachand helicopters. Hindustan Aeronautics Ltd has won orders worth ₹1170 Crore from Cochin shipyard.

Garden Reach Shipbuilders & Engineers Ltd has won orders worth ₹1910 Crore order while Bharat Electronics has won orders worth ₹3170 Crore as per ICICI Securities data. Cochin shipyard also has won orders worth ₹1100 Crore while Solar industries has developed three new explosives.

The target price of Solar Industries share price at ₹13250 by ICICI Securities indicates more than 13% upside for the stock from current market price of ₹11710. For Astra Microwave share price , target of ₹935 and Azad Engineering share price target of ₹1750 are 2-4% higher than current levels at which these share prices are trading and hence any corrections may be good opportunity to Buy.

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 taking any investment decisions