These defence stocks are likely to benefit from the latest ₹79,000 crore DAC approval

A slew of defence companies are likely to benefit from the latest procurement approval granted by the Defence Acquisition Council (DAC) on Thursday, October 23.

The DAC approved procurement proposals worth ₹79,000 crore on Thursday, for the acquisition of equipment for the Indian Army, Navy and the Indian Air Force.

According to Elara Capital, these stocks are the likely beneficiaries of the most recent proposals:

For the Indian Army, the DAC has approved the procurement of Nag Missile System (Tracked) Mk-II (NAMIS). This could benefit Bharat Dynamics, as the company could receive orders worth nearly ₹2,000 crore to enhance the capability of neutralizing the enemy's combat vehicles, bunkers and other field fortifications.

The DAC has also approved the acquisition of Ground-based Mobile ELINT System (GBEMS), which would benefit stocks like Bharat Electronics and Astra Micro, to provide round-the-clock electronic intelligence of enemy emitters.

The Indian Army has also been granted approval to acquire High Mobility Vehicles (HMVs) with material handling crane, which puts the spotlight on stocks like BEML.

Multiple approvals have also been granted to the Indian Navy, and as per Elara Capital, these are the likely beneficiaries:

Shipbuilding companies like Mazagon Dock, Garden Reach Shipbuilders, Cochin Shipyard, along with L&T could be potential beneficiaries of orders worth up to ₹60,000 crore for Landing Platform Docks (LPD), to help the Indian Navy to undertake amphibious operations along with Indian Army and Indian Air Force.

The approval to acquire 30 mm Naval Surface Gun (NSG) could benefit stocks like BHEL and Garden Reach Shipbuilders. BHEL could also be a potential supplier of smart ammunition for 76 mm Super Rapid Gun Mount, according to Elara.

Bharat Dynamics could also be a beneficiary of orders between ₹500 crore to ₹1,000 crore for Advanced Light Weight Torpedoes, capable of targeting conventional, nuclear and midget submarines.

BEL, Astra Micro and Data Patterns could also receive orders from the Indian Navy for Electro Optical Infra-Red Search and Track System.

The Nifty India Defence Index has been on a six-day winning streak, and has gained 2.5% during this period. The index though, has been flat over the last one month.