Over the past five sessions, HAL's stock price has tanked 20.5 percent in trade.
However, it bumped up its target price to Rs 294 from Rs 207 earlier.
Story continues below Advertisement Remove AdThe brokerage maintained its outperform call on HAL, with a target price of around Rs 4,731 per share.
Hindustan Aeronautics' stock price was lower by 6.5 percent at Rs 4,054.15.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management.
Over the past five sessions, HAL's stock price has tanked 20.5 percent in trade.
live bse live
nse live Volume Todays L/H More ×
As the market sentiment on defence firms took a sharp turn after the election verdict for the NDA government plunged under expectations, foreign brokerage CLSA said that the defence stocks' valuations leaves little room for execution error.
CLSA downgraded Bharat Electronics to 'outperform' from 'buy'. However, it bumped up its target price to Rs 294 from Rs 207 earlier. This indicates an upside potential of 15 percent.
Story continues below Advertisement Remove Ad
The brokerage maintained its outperform call on HAL, with a target price of around Rs 4,731 per share.
At 9.50 am, BEL shares were quoting Rs 243.25 on the NSE, lower by 4.8 percent. Hindustan Aeronautics' stock price was lower by 6.5 percent at Rs 4,054.15.
Follow our market blog to catch all the live updates
Defense stocks had been the flavor of the season under the Modi government's second term, reaching greater highs on the back of the centre's push towards the indigenization of defense manufacturing under the Atmanirbhar Bharat theme.
With the BJP having to depend on its allies to form the government, experts believe the government's policy stance might shift from growth-led initiatives to favour consumption, welfare-based initiatives.
As a result, some experts suggested that stocks that have seen policy favour such as PSUs, capital goods, railways or defence will see slower growth.
Story continues below Advertisement Remove Ad
CLSA, on the other hand, expects that the government will continue to "walk-the-talk" on the defence front and continue to push for indigenisation. The government's thrust has led to a 9 percent CAGR in defence spending over FY16-24, which is unlikely to change.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
