Ideaforge Technology Ltd. has secured a Rs 137 crore order from India’s defence ministry, a move that has propelled its shares to the upper circuit in a broader market decline. The order, announced on Monday, involves the supply of mini unmanned aerial vehicles (UAVs) with accessories, to be delivered within 12 months. This development comes amid heightened geopolitical tensions, as the ongoing Iran-Israel conflict continues to ripple through global financial markets.
The defence sector in India has shown resilience, with the Nifty Defence index rising 2% despite broader market downturns. The escalation between Iran and Israel, following US strikes on Iranian nuclear sites and retaliatory airstrikes, has intensified investor focus on defence stocks. Ideaforge Technology Ltd. has emerged as a standout performer, with its shares climbing 4.19% to Rs 598.70 by 9:45 a.m. before hitting the upper circuit limit—a 10% surge to Rs 631.05, the highest level since January 6.
Other defence stocks also saw gains, with Paras Defence and Space Technologies Ltd. up 3.68% to Rs 1,696.70, Zen Tech Ltd. rising 2.77% to Rs 1,926.60, and DCX Systems Ltd. increasing 2.40% to Rs 298.45. Despite this positive momentum, Ideaforge’s stock has faced volatility, falling 18.60% over the past year but gaining 6.93% year-to-date. Trading volume has been robust, reaching 1.2 times its 30-day average, while the relative strength index stands at 59.14.
Analyst sentiment remains mixed, with one recommendation to hold and another to sell, according to Bloomberg data. The average 12-month price target suggests a potential downside of 38.5% from the previous close, indicating caution among some market watchers.
This latest order underscores the growing demand for advanced UAV technology in India’s defence sector. As geopolitical tensions persist, companies like Ideaforge are likely to remain in focus, with their ability to deliver cutting-edge solutions shaping future market dynamics. The defence sector’s resilience in the face of broader market declines highlights its strategic importance, particularly in times of heightened global instability.