Phani Sekhar of Karvy Stock Broking told CNBC-TV18, "It is a good idea to invest in any of the defence stocks, companies like Bharat Electronics which already has an existing line of defence production going on and more importantly which already sells defence products because defence is a sector where it takes abnormally long time to get your products approved. The cycle may be as long as three to five years."
"So, while we are seeing the first round of excitement where many companies are either acquiring capacity or striking partnerships to enter into defence production but by the time that they start realising the first dollar in revenue, it might be another three to five years. So, it is possible that many of these companies or stocks might go sideways over a period of time," he said.
"So it is a good idea to carefully look at those companies which already have an existing business rather than bet on companies that intend to start one."
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