BEL and HAL among 10 stocks where HDFC Defence Fund hiked stake in February

HDFC Defence Fund, the only sector-focused defence fund, increased its stake in 10 stocks, including BEL, HAL, Solar Industries India, MTAR Technologies, and Techno Electric & Engineering.

The fund added approximately 14.83 lakh shares of Bharat Electronics, raising its total holding to 3.37 crore shares in February from 3.23 crore in January. It also acquired 2.66 lakh shares of BEML and 1.36 lakh shares of Astra Microwave Products during the month.

Additionally, HDFC Defence Fund increased its stake in Hindustan Aeronautics by 1.02 lakh shares, bringing its total holding to 23.58 lakh shares. The fund also added 81,661 shares of Solar Industries, 80,000 shares of Techno Electric & Engineering, and 23,764 shares of Power Mech Projects.


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The fund did not reduce its stake in any stock during the period, while its exposure to 11 stocks remained unchanged, including Cyient DLM, Larsen & Toubro, Premier Explosives, InterGlobe Aviation, Avalon Technologies, The Anup Engineering, and Adani Energy Solutions.

No new stocks were added, nor did the fund completely exit any holdings during the period.

As of February 28, 2025, HDFC Defence Fund holds a total of 21 stocks. Its top 10 holdings include Bharat Electronics, Hindustan Aeronautics, Solar Industries, BEML, Cyient DLM, Astra Microwave Products, L&T, MTAR Technologies, Premier Explosives, and InterGlobe Aviation.

Based on portfolio classification by industry, the fund has the highest exposure in Aerospace and Defence at 49.61%, followed by 14.76% in Chemicals and Petrochemicals. The fund holds 9.53% in Agricultural, Commercial, and Construction Vehicles, followed by 8.71% in Industrial Manufacturing. Power has the lowest allocation at 0.82%.

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HDFC Defence Fund is an open-ended equity scheme that invests in defence and allied sector companies. It is suitable for investors seeking long-term capital appreciation/income through equity and equity-related instruments in the defence sector.

The scheme is benchmarked against the Nifty India Defence Index TRI and had an AUM of Rs 3,880 crore as of February 28, 2025.