Goldman Sachs Sees Up to 46% Upside in BEL, Solar Industries, and PTC Amid India’s ₹790 Billion Defence Boost

India’s defence sector is poised for a significant upswing, and global investment bank Goldman Sachs has taken notice. In a recent report, the firm turned bullish on India’s defence manufacturing landscape, citing the Defence Acquisition Council’s (DAC) approval of ₹790 billion worth of new procurement projects. Among the top beneficiaries, Goldman Sachs has identified Bharat Electronics Limited (BEL), Solar Industries India Ltd, and PTC Industries Ltd as key players with potential upside of up to 46%.

This strategic endorsement comes at a time when India is aggressively pushing for defence indigenisation, enhanced export capabilities, and private sector participation. The DAC’s greenlight for these massive capital acquisitions signals a long-term commitment to strengthening the country’s military infrastructure and self-reliance in defence production.

Defence Sector: A ₹790 Billion Opportunity

The DAC’s approval of ₹790 billion (approximately $9.5 billion) in capital acquisitions marks one of the largest single tranches of defence procurement in recent years. The projects span a wide range of capabilities, including:

• Naval shipbuilding and submarine upgrades
• Advanced missile systems and air defence platforms
• Electronic warfare systems
• Armoured vehicles and artillery modernization
• Indigenous manufacturing of critical components

This massive investment aligns with the government’s “Make in India” and “Atmanirbhar Bharat” initiatives, aiming to reduce dependency on imports and boost domestic manufacturing.

Goldman Sachs’ Top Defence Picks

Goldman Sachs has initiated coverage on eight defence and aerospace companies, assigning “Buy” ratings to six of them. Among these, BEL, Solar Industries, and PTC Industries stand out for their strong order books, technological capabilities, and alignment with the government’s procurement roadmap.

Goldman’s analysis suggests that private sector players are better positioned to capitalize on the current defence push due to their operational flexibility, faster execution, and export potential.

Bharat Electronics Limited (BEL): The PSU Powerhouse

BEL, a Navratna PSU under the Ministry of Defence, is a key supplier of radar systems, communication equipment, and electronic warfare systems to the Indian Armed Forces. With a robust order book exceeding ₹65,000 crore and a strong pipeline of upcoming projects, BEL is expected to benefit significantly from the DAC’s approvals.

BEL’s focus on R&D, indigenous development, and diversification into civilian sectors like smart cities and railways further strengthens its long-term outlook.

Solar Industries India Ltd: The Private Missile Maker

Solar Industries has emerged as a formidable player in the defence ammunition and missile propulsion space. The company has successfully transitioned from industrial explosives to high-end defence products, including Pinaka rockets, loitering munitions, and propellants for strategic missiles.

Solar’s agility, innovation, and export readiness make it a standout in the private defence ecosystem.

PTC Industries Ltd: Precision Engineering for the Future

PTC Industries specializes in high-integrity castings and components for aerospace, defence, and energy sectors. The company’s indigenous titanium casting capabilities and partnerships with DRDO and HAL position it well for upcoming defence programs.

PTC’s focus on advanced materials and additive manufacturing aligns with the future needs of defence platforms.

Market Sentiment and Investor Response

The defence sector has seen a surge in investor interest following the DAC announcement and Goldman Sachs’ report. Stocks of BEL, Solar Industries, and PTC Industries have witnessed increased trading volumes and upward price momentum.

Retail and institutional investors are closely tracking order inflows, quarterly results, and policy developments to gauge future performance.

Strategic Implications for India’s Defence Sector

The ₹790 billion defence push is not just a financial stimulus—it’s a strategic move to:

• Enhance self-reliance in critical technologies
• Boost exports to friendly nations
• Create high-skilled jobs in manufacturing and R&D
• Strengthen India’s geopolitical standing

With global tensions rising and supply chains being reconfigured, India’s defence manufacturing capabilities are becoming increasingly vital.

Challenges and Risks

While the outlook is positive, there are challenges that could impact execution:

• Bureaucratic Delays: Procurement cycles in defence are often prolonged.
• Technology Gaps: Indigenous development of cutting-edge systems requires sustained R&D.
• Global Competition: Indian firms must compete with established global OEMs.
• Valuation Concerns: Some stocks may already be pricing in future growth.

Investors are advised to monitor order execution, margin trends, and policy continuity.

Conclusion

Goldman Sachs’ bullish stance on India’s defence sector, backed by the ₹790 billion procurement approvals, signals a transformative phase for companies like BEL, Solar Industries, and PTC Industries. With strong fundamentals, strategic alignment, and government support, these firms are well-positioned to deliver robust returns and contribute to India’s defence self-reliance.

As the sector evolves, investors, policymakers, and industry leaders must collaborate to ensure that India not only meets its domestic defence needs but also emerges as a global hub for defence innovation and exports.

Disclaimer: This article is based on publicly available financial reports and analyst commentary. It does not constitute investment advice. Readers are advised to consult certified financial advisors before making investment decisions.