Third Positive Indigenization List (PIL), Sixth PIL for Defense Goods, Ministry of Defense’s continued pursuit of self-reliance in defense manufacturing as well as reducing imports and developing small and medium private defense companies, brokerage Elara said. analysts said. Capital in a note.
They remain positive on the story of indigenization and are encouraged by the growing export pie. Brokerage believes that small and medium private defense stock Such as Data Patterns, MTAR Technologies, Paras Defence, Astra Microwave, Dynamic Technologies, Taneja Aerospace etc. will emerge as major beneficiaries.
The Ministry of Defense (MoD) has approved the Sixth Positive Indigenization List (PIL) of 780 items, including Line Replacement Units (LRU) / Sub-systems / Components on 28 August 2022. This move will further reduce defense imports.
Indigenous development of these LRUs/sub-systems/components will boost the economy and reduce the import dependence of DPSUs. In addition, it will help harness the design capabilities of the domestic defense industry and establish India as a design leader in these technologies, the ministry said in a release.
The list includes 360 items from Hindustan Aeronautics (HAL), 134 items from Mazagon Dockyard, 111 items from BEML, 69 items from Bharat Electronics (BEL), three items from Garden Reach Shipbuilders and Engineers, two items from Bharat Dynamics (BDL) . 101 items from other unlisted DPSUs. The indigenization deadline extends to December 2023-28 and Elara expects small and medium domestic private companies to be the major beneficiaries.
The brokerage house has placed a buy tag on Garden Reach Shipbuilders & Engineers with a target price of 400. Whereas, it sold . Ratings have been submitted with target prices of 2,650 more 960 respectively and have reduced recommendations on Bharat Electronics (TP: 305) and BEML (TP: 1,865).
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