Defense PSUs in Focus: HAL and BEL Order Books Cross Historic Milestones

Order Book Execution

Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL) have solidified multi-year revenue visibility, driven by domestic modernization mandates and bilateral export agreements.

Fundamental Metrics

• Capital Outlay: The defense budget's domestic procurement share continues to rise, ensuring multi-year revenue compounding.
• Export Expansion: Indigenous avionics, radar systems, and lightweight helicopters are capturing interest across Southeast Asia and Africa.

Valuation Perspective

While defense multiples trade at premium valuations, structural earnings growth and debt-free balance sheets support valuations on corrective pullbacks.