Defence stocks skyrocket after India's record defence production growth in FY24; check list

Defence stocks were trading in positive territory on Friday after Defence Minister Rajanath Singh announced that India registered the highest-ever growth in defence production in the financial year 2023-24.

The value of defence production in FY24 reached to ₹1,26,887 crore, reflecting a 16.8% year-on-year (YoY) growth than the value of production in previous financial year.

Following the announcement, shares of defence companies gained as much as 11%. Bharat Earth Movers Limited (BEML) stock was trading 11.3% higher, while Data Patterns, which provides electronics solutions in the defence sector, gained 7.8%.

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Of the total value of production in FY24, PSUs contributed 79.2% and the private sector 20.8%.

"The data shows that in terms of absolute value, both DPSUs/PSUs and private sector have recorded a steady growth in defence production," the defence ministry said in a statement.

Taking to X, the defence minister said, "Many congratulations to our industry including DPSUs, other PSUs manufacturing defence items and the Private industry. The Government is committed to create more conducive regime for developing India as leading Global Defence Manufacturing Hub".

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Prime Minister Narendra Modi also lauded this feat, calling it a "very encouraging development".

"Compliments to all those who have contributed to this feat. We are fully committed to nurturing a supportive environment to further enhance our capabilities and establish India as a leading global defence manufacturing hub. This will enhance our security apparatus and make us Aatmanirbhar!" he added.