Can defence stocks sustain momentum in 2026?
The sharp surge has also raised concerns around the valuations of these companies, forcing investors to reconsider if the multibagger defence stocks still deserve a spot in their portfolios.
Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital, said the main concern for defence stocks is the valuations. “The pure-play weapons equipment-related defence stocks trade at valuations ranging from 34 to 178. The median PE of the defence pack is 50+. This is still very high, despite the recent fall,” he said.