Railways, Defence, Industrial Stocks: Antique Stock Broking ups target price of these 13 shares

Antique Stock Broking is positive on industrials, railways and defence space, citing India’s capex story in 2024. The brokerage believes that there is a substantially high probability of the current government at the centre continuing, and as a result the outlook for capex, defence and railway sectors has meaningfully improved. “Even though valuations have risen, many segments within these sectors offer multi-year investment potentials,” it said.

The brokerage has raised target prices across companies within industrials, railways and defence sectors– valuing companies based on FY26 earnings.

Following a prolonged lull of stagnation during FY12–21, the industrial sector under the coverage of Antique reported a massive 24 per cent and 18 per cent growth in order intake during FY22 and FY23, respectively.

“We are revising upwards order inflow growth to a CAGR of 21 per cent over FY23–26E (18 per cent earlier). Similarly, revenue is expected to grow at 17 per cent CAGR (15 per cent earlier), while earnings will grow at 28 per cent (26 per cent earlier) over the same period,” Antique Stock Broking said.

The brokerage is bullish on Siemens (Target price: Rs 5,633), ABB (Rs 6,167), BHEL (Rs 230), Larsen & Toubro (L&T) (Rs 4,214), Hitachi Energy (Rs 5,941) and Kirloskar Oil Engines (Rs 851) in the industrial space.

It further added that the defence equipment sector has seen a remarkable transformation and is expected to post order inflow CAGR of 29 per cent (10 per cent earlier). Significant change is led by prospect of large ticket orders for Hindustan Aeronautics (HAL) in FY26.

“Revenue and earnings are expected to grow at a CAGR of 17 per cent (16 per cent earlier) and 15 per cent (13 per cent earlier), respectively,” the brokerage said.

HAL (Target price: Rs 3,615), Bharat Dynamics (Rs 2,038), Bharat Electronics (Rs 221) and Mazagon Dock (Rs 2,833) are among the top picks of the brokerage in the defence space.

Railway equipment and EPC companies are expected to grow revenue and earnings by 15 per cent and 16 per cent over FY23–26. Antique Stock Broking is positive on Titagarh Rail Systems (Target price: Rs 1,252), RITES (Rs 649) and IRCON (Rs 187) in the railway sector.vSharing its view on the railways sector, Antique Stock Broking added that

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