India's defense sector is rapidly growing stronger. Proposals are being approved one after another, strengthening its total addressable market (TAM).

India Defense Sector: Global brokerage firm Goldman Sachs sees great promise in India's defense sector. According to a report, India's aerospace and defense market is poised to grow rapidly.

In fact, various proposals in this sector are receiving government approval, strengthening their total addressable market (TAM). Recently, on October 23rd, the Defense Acquisition Council (DAC) approved proposals worth ₹790 billion for the Navy, Army, and Air Force. This clearly demonstrates the government's continued focus on strengthening the country's defense sector. 

India's defense system is getting stronger.

India is seeking to strengthen its defenses in light of tensions with its neighbors, like China and Pakistan. In response, the DAC approved a proposal to purchase new missile systems, high-mobility vehicles, and several other equipment. This deal is worth ₹790 billion (approximately $9 billion).

Meanwhile, defense proposals worth ₹2.5 trillion have been approved so far this year, with more approvals expected in the remaining six months. This is an increase from ₹2.3 trillion in proposals received in the previous financial year. This clearly indicates that India is increasingly spending on its defense sector.

Goldman expects these stocks.

Meanwhile, Goldman Sachs has given a 'buy' rating to PTC Industries and Solar Industries and raised their target prices to 24,725 (up 46%) and 18,215 (up 30%), respectively. Furthermore, it maintained its 'buy' ratings for Bharat Electronics (BEL), Astra Microwave, Data Patterns, and Azad Engineering. However, it adopted a 'neutral' stance on Hindustan Aeronautics (HAL) and reduced its target price by 11% to ₹1,375 for Bharat Dynamics (BDL) and maintained a 'sell' rating.

Since BEL is a major supplier to the defense sector in India, Goldman expects its next electronics and integration contract to generate profits of ₹120-150 billion. Similarly, Data Patterns and Astra Microwave are also expected to see revenue growth due to increased investment in electronic warfare and radar systems.