HDFC Defence Fund Adds Mazagon Dock, Increases Stake in Bharat Dynamics & More

HDFC Defence Fund reshuffled its portfolio in August 2025 with both new additions and key exits. The fund added Mazagon Dock Shipbuilders while increasing exposure in Bharat Dynamics and four other defence-related companies.

New Additions and Increased Stakes

The fund purchased 4.50 lakh shares of Mazagon Dock Shipbuilders worth ₹117.13 crore. It also increased its stake in Bharat Dynamics by acquiring 3.38 lakh shares, taking the total holding to 20.48 lakh shares in August from 17.10 lakh in July.

Other additions included:

• 5.98 lakh shares of Bharat Forge
• 2.15 lakh shares of Centum Electronics
• 22,449 shares of Data Patterns (India)
• 3,070 shares of Solar Industries

These additions highlight the fund’s strategy of strengthening its presence in core defence manufacturing and allied industries.

Reductions and Exits

The fund also trimmed its holdings in Cyient DLM, Techno Electric & Engineering Company, Avalon Technologies, and JNK India. Notably, it sold:

• 99,453 shares of Cyient DLM
• 48,869 shares of JNK India
• 42,200 shares of Avalon Technologies
• 13,220 shares of Techno Electric & Engineering Company

A complete exit was made from Interglobe Aviation with the sale of 2.65 lakh shares worth ₹156.62 crore.

Portfolio Overview

Despite these changes, the fund continued to hold 24 stocks in August, the same number as in July. Exposure in 14 stocks remained unchanged, including BEML, Bharat Electronics, Hindustan Aeronautics, L&T, MTAR Technologies, and Premier Explosives.

Sector-wise allocation in August was:

• Capital goods – 60.30%
• Chemicals – 16.58%
• Electricals – 7.24%
• Automobiles & ancillaries – 4.71%
• Infrastructure – 3.29%
• Shipbuilding – 1.79%

Among the top 10 holdings, Bharat Electronics led with 18.57% allocation, followed by Hindustan Aeronautics (14.93%) and Solar Industries (13.77%).

Performance Snapshot

Launched on June 2, 2023, the fund is benchmarked against the Nifty India Defence TRI and is managed by Rahul Baijal and Priya Ranjan. It currently holds 93.93% in equity, spread across large-cap (49.39%), mid-cap (9.21%), and small-cap (35.32%) stocks.

In terms of performance, the fund has delivered a 44.46% CAGR since inception, a 30.89% return in the last six months, and 5.92% over the past year. Comparatively, the benchmark gained 32.88% in six months and 11.93% in one year.

Also Read: Best Defence Sector Mutual Funds In September 2025 Based on AUM!

Conclusion

HDFC Defence Fund’s latest moves reflect a clear focus on strengthening its defence-centric portfolio while exiting non-core holdings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.