Why Indian-Share-Tips.com’s Gulshan Khera, CFP®, Sees India’s Defence and Core Sectors Entering a Golden Growth Phase
Why the Shift Towards Domestic-Focused Sectors
According to Khera, India’s resilience lies in its structural demand and policy execution. Falling inflation, stable interest rates, and robust banking liquidity are driving capital formation. In his view, the best opportunities now lie within sectors directly tied to India’s growth engine — including financial services, manufacturing, and defence production. Waiting for “perfect clarity,” he warns, could mean missing the rally that has already begun.
Sectoral Overview: Broad-Based Growth Theme
Khera identifies six sectors that reflect India’s multi-dimensional growth opportunity. Each offers unique triggers — from policy support to rising order inflows and margin recovery:
| Sector | Market Sentiment | Key Triggers | Outlook |
|---|---|---|---|
| NBFCs | Positive | Retail credit demand, MSME lending surge | Attractive with steady growth visibility |
| Infrastructure & Cement | Strong | Government capex, affordable housing, logistics | Multi-year expansion; pricing stability returning |
| Steel & Power | Cyclical Recovery | Manufacturing rebound, renewable capacity build-up | Long-term structural play with improving ROEs |
| Defence | Extremely Bullish | Record defence orders, Make-in-India policy support | Secular uptrend; large order visibility for 3+ years |
| Auto Components & Exports | Positive | Global supply-chain diversification, EV adoption | Medium-term compounders with rising global share |
Defence Sector: India’s Strategic Growth Engine
India’s defence manufacturing ecosystem has transformed from a public-dominated setup to a competitive private participation model. Supported by government initiatives such as the Defence Acquisition Procedure (DAP 2020) and higher indigenization targets, order inflows have surged for both public and private entities. Khera sees this as one of the strongest long-term structural stories in India.
| Company | Order Book (₹ Cr) | Recent Developments | Outlook |
|---|---|---|---|
| Hindustan Aeronautics (HAL) | 94,000+ | Tejas Mk1A and helicopter orders; export inquiries rising | Strong visibility till FY28; margin expansion likely |
| Bharat Electronics (BEL) | 80,600+ | Radar, missile system, naval communication contracts | Stable execution, expanding export footprint |
| Mazagon Dock Shipbuilders | 42,300+ | Scorpene submarine delivery and next-gen destroyer orders | Execution momentum improving with higher efficiency |
| Bharat Dynamics (BDL) | 23,000+ | Surface-to-air and anti-tank missile contracts | Visibility through FY27 with new export orders expected |
| Cochin Shipyard | 24,000+ | Naval fleet expansion, green vessel construction | Diversification into commercial shipbuilding improving margins |
Khera’s Strategic Insight: Deploy Early, Stay Allocated
Khera advises that investors should gradually build exposure instead of waiting for confirmation signals. Historically, India’s market leadership rotates quickly across cyclical sectors, and those who deploy early capture the best part of the move. With capex, defence, and credit growth forming a synchronized expansion cycle, he considers the next 12–18 months crucial for portfolio realignment.
Investor Takeaway
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
