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Antique Stock Broking has given bullish stance on India's defence space following its Defence Conference 4.0, pointing to a Rs 13.8 lakh crore domestic defence capex drive and growing export prospects as major tailwinds. The brokerage has suggested four primary defence stocks for investors who want to benefit from the sectoral rally: Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Mazagon Dock Shipbuilders, and PTC Industries.

Hindustan Aeronautics is Antique's highest largecap recommendation, referring to the firm's Rs 2 lakh crore order book in the pipeline by 2030. As big projects for the Indian Air Force and fresh alliances are in the works, HAL stands as a key contributor to India's defence modernisation plan.

Bharat Electronics is supported by its dominance in defence electronics and a shift from mere manufacturing to full-system integration. Next-generation missile system orders such as QRSAM (Quick Reaction Surface-to-Air Missiles) are viewed as a robust catalyst for future growth.

Mazagon Dock Shipbuilders will be aided by new orders for Scorpene-class submarines and foreign partnerships, particularly with Thyssen Krupp in order to transfer technology. Antique considers this PSU to be a good bet on naval modernisation.

PTC Industries, a smallcap defence proxy, is a candidate for being a multi-bagger. Its subsidiary Aerolloys Technologies is developing a Strategic Material Tech Complex in Lucknow, which should bring exponential growth in revenues in the next 5-6 years.

The brokerage observed that the Government of India's emphasis on 'Atmanirbhar Bharat' and rising proportion of defence exports in helicopters, missiles, and aircraft are crucial structural themes. Private sector involvement and price stability are additional tailwinds.

Strong government capex, enhanced order visibility, and expanding global partnerships are the pillars of Antique's bull call. The company is convinced that investors can take advantage of long-term expansion as well as near-term order flows in these flagship defence names.

With the industry set to see high double-digit growth and scale-up globally, Antique's defence stock basket has a combination of stability, scale and exponential upside potential. Tactical as well as long-term players should consider HAL, BEL, Mazagon Dock, and PTC Industries.

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