HDFC Defence Fund Raises Holdings in Mazagon Dock and Adds Eicher Motors in September

HDFC Defence Fund made significant portfolio changes in September, strengthening its position in key defence stocks while also adding Eicher Motors to its holdings. The fund also exited certain positions and streamlined its equity focus across market capitalisation segments.

HDFC Defence Fund Expands Stake in Defence Sector and Welcomes Eicher Motors

In September, HDFC Defence Fund raised its holding across several defence-focused stocks. Shares added include 32,50,000 of Bharat Forge, taking the total to 55,50,000 from 23,00,000 in August. Premier Explosives saw an addition of 9,39,000 shares, while Bharat Dynamics, Mazagon Dock, Astra Microwave Products, and Data Patterns also saw increased holdings of 5,02,000, 56,964, 56,168, and 14,743 shares, respectively. The fund introduced Eicher Motors into its portfolio with 1,25,000 shares valued at ₹88.03 crore.

Strategic Reductions and Complete Exit from L&T

The fund reduced exposure in 6 stocks: BEML, Solar Industries India, Techno Electric & Engineering Company, Dee Development Engineers, Avalon Technologies, and JNK India. Notably, Techno Electric witnessed a reduction of 4,60,000 shares, while Avalon Technologies and JNK India saw a drop of 1,62,000 and 19,083 shares, respectively. A complete exit from Larsen & Toubro was also made, with 61,599 shares sold in September.

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Portfolio Composition and Asset Allocation as of September 30, 2025

HDFC Defence Fund maintained 24 stocks in its portfolio with no change in count from August. Assets under management (AUM) increased to ₹7,024 crore, up from ₹6,532 crore in the previous month. The portfolio consisted of 49% large-cap, 15.78% mid-cap, 33.76% small-cap, and 1.46% classified as others. The equity allocation was at 98.53%.

Performance Overview Since Inception

Since its inception, the fund has delivered a return of 46.04% as of October 8, 2025. The 6-month return stands at 29.10%, while the 1-year performance shows a 14.75% gain. Among the top 10 holdings, Bharat Electronics holds the highest weightage at 18.88%, followed by Hindustan Aeronautics at 15.21%.

Conclusion

HDFC Defence Fund’s moves in September indicate confidence in India’s defence sector and efficient repositioning through the inclusion of strategic industrial stocks like Eicher Motors. With increased AUM and solid returns, the fund remains focused on capitalising emerging defence opportunities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.

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