Safran Vs Rolls-Royce-Reliance: HAL, BEL or L&T, which defence stock could benefit? CLSA reveals

CLSA says India has become “the most promising defence fighter and helicopter engine market in the world,” citing US$17 billion in Make in India contracts for fighter jets, engines and helicopters. The brokerage keeps Hindustan Aeronautics, Bharat Electronics and Larsen & Toubro rated “Outperform,” with Bharat Electronics showing the highest potential upside among the three. The near-term catalyst is the AMCA Mk2 engine programme: Safran is selected for a 120 kilonewton engine R&D contract, while Rolls-Royce has partnered with Reliance to explore an aerospace gas-turbine engine hub in India. CLSA argues technology-transfer delays by General Electric opened space for Safran, and the Rolls-Royce-Reliance plan adds another route for indigenous fighter-engine goals. It lists major pipelines, order sizes, MRO and export opportunities tied to Safran and other programmes.