Brokerage Nirmal Bang expects a 13% year-on-year revenue growth for the defence stocks in its coverage.

What The Brokerage Said: Nirmal Bang upgraded Hindustan Aeronautics, Bharat Earth Movers and Data Patterns to "buy" due to a recent correction in stock prices, while maintaining their earning multiples. 

Nirmal Bang noted that most of the defence stocks have fallen between 6% and 22% between July and October. However, it still bets on the long-term growth of the sector with the government's increased defence spending and increased push towards indigenization.

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For Bharat Dynamics, the brokerage expects the order book to come at ₹23,674.1 crore in the September quarter, indicating a 14% year-on-year growth. For BHEL, it sees the order book grow by 11.3% from the previous year to ₹76,447.7 crore in Q2.

For BEML, the order book is expected to grow 12% year on year to ₹14,269.2 crore. In HAL's case, it is expected to increase 10.2% from the previous year to ₹1.15 lakh crore. For Data Patterns, the order book is set to grow 12.4% year on year to ₹1,127.3 crore. 

On the other hand, Mazagon Dock's order book is expected to decline 6.7% year on year to ₹34,982.8 crore. 

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