Defence Ministry Declares 2025 'Year Of Reforms': List Of Defence Stocks That May Benefit

On January 1, 2025, the Ministry of Defence under Rajnath Singh declared the year 2025 as the ‘Year of Reforms,’ indicating that the government will focus extensively on mordenising the Indian Defence Forces that will give a boost to domestic defence production. 

“Key initiatives include establishing Integrated Theatre Commands for streamlined operations, adopting emerging technologies like AI and robotics, boosting indigenous defence production and exports, and strengthening global partnerships,” the Ministry of Defence wrote in post on X.com. 

Defence Ministry shared that these reforms are aimed towards elevating the nation’s defence capabilities, ensuring readiness for future challenges while driving innovation and leadership on the global stage. With this update, the key defence stocks are likely to remain in focus as the boost to indigenous defence manufacturing will drive growth for local armouries. 

Here are the top stocks that may benefit from modernisation and focus on domestic defence equipment acquisitions. 

Mazagon Dock

Mazagon Dock Shipbuilders Limited, formerly called Mazagon Dock Limited, is a company with shipyards situated in Mazagaon, Mumbai with its share price currently standing at Rs 2,248. The shares of the company have surged by over 96 per cent in 2024. Mazagon Dock manufactures warships and submarines for the Indian Navy and offshore platforms. 

Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited is a public-sector aerospace and defence company with a market capitalisation of Rs 2.79 lakh crore and a share price of Rs 4,167.80. In the last one year, the shares of the company have surged 47.46 per cent.

Bharat Dynamics 

Bharat Dynamics Limited is one of India's manufacturers of ammunition and missile systems based in Hyderabad. The company has a market capitalisation of Rs 41,630 crore and the current share price of Rs 1,135.55 apiece. The shares of the company gained 31.53 per cent in 2024. The company manufactures guided missiles, Underwater weapons, Air-borne products, and Ammunition systems for the Indian Defence Forces. 

Bharat Electronics

Bharat Electronics Limited is an aircraft and defence electronics manufacturer headquartered in Bangalore. The stock of the company has performed great in the last year with 58.96 per cent gains.