New Delhi, June 11 -- Shares of the Chinese defence company, AVIC Chengdu, which manufactures fighter jets like the J-10, have failed to see any traction this year despite the US-Iran war, having lost 27% so far this year.

The correction comes after a stellar rally in the stock over the past year, fuelled by heightened interest in Chinese military hardware and the J-10 fighter jet. The stock has lost 22% in three months and 28% in the last one year. However, on a longer time frame, it has delivered multibagger gains of 288% in five years.

AVIC Chengdu had become one of the biggest beneficiaries of geopolitical tensions last year. The stock surged after the India-Pakistan conflict brought global attention to the J-10 fighter jet. In just...