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Below the Quote on Defence Stocks by Mr. Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings Ltd 

Defence stocks look promising due to the ongoing geopolitical tussle between Iran and Israel. Moreover, the Indian government is likely to enhance defence spending from the current ~2 percent of GDP to 3–4 percent over the next decade. Further, the government has targeted Rs.25,000 crore in defence exports by 2025–26. Investors can focus on export-driven defence stocks with long-term potential. In the current scenario, geopolitical tensions will likely be lingering between different countries, especially as being reflected in rising tensions in the Middle East. Investors should carefully assess the financials and outlook of such stocks before investing, and their should be judicious mix so that a healthy dividend can also be earned.

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