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ππππ πππππ‘ππ ππ¨π‘π NFO OPEN DATE – 19 MAY 2023
In India, enhancement of defence capabilities was already in focus. with a strong emphasis on ‘Aatmanirbharta’ or self-reliance. This does provide an investment case for Indian defence companies, which are expected to benefit from this trend of indigenization of defence, along with promising export potential.
Why invest in Defence companies ?
βͺοΈMultipolarity to aid increase in global defence expenditure.
βͺοΈIndiaβs strong economic growth and geopolitical considerations support runway for Indian defence expenditure.
βͺοΈDefence expenditures have been stable as a % of GDP and defence capex can grow in sync or closer to nominal GDP growth.
βͺοΈR&D focus to help tap global export potential.
βͺοΈIndian defence companies display strong orderbooks and growth potential.
Why to Invest in HDFC Defence NFO ?
1οΈβ£ Defence spending of India is around 2.4% of GDP and increasing year on year.
2οΈβ£ Through initiatives like Make in India, government policies remain conducive to the growth of the defence sector in the country.
3οΈβ£ India’s capital outlay in Defence has grown at 9% CAGR.
4οΈβ£ India’s defence exports increased 8x over 8 years and India is now exporting equipment to 85+ countries.
Still low, less than 1% of global defence exports.
5οΈβ£.Indian defence companies have order book in excess of βΉ2 Tn, which is 4x of revenues and gives strong visibility on revenue growth.
*SOURCE HDFC MF