New Delhi, Oct. 14 -- India's defence and aerospace sector could be entering a new phase of growth, with rising domestic procurement, localisation, defence electronics, drones and global aerospace partnerships creating opportunities across the manufacturing value chain.

Brokerage DAM Capital, following discussions with industry leaders and management teams, has identified Hindustan Aeronautics (HAL), Mishra Dhatu Nigam (MIDHANI) and Bharat Dynamics (BDL) as its preferred picks among defence public sector undertakings (DPSUs). It also sees opportunities in private-sector companies Astra Microwave Products and Zen Technologies.

In a recent report, DAM Capital said the sector was moving beyond an order-driven expansion phase towards growth...