Ion Jauregui – Analyst at ActivTrades
The Indra Group (AIR.MC) has become the major player in the Spanish defense sector by securing the entirety of the new €4.7 billion loans that the Ministry of Industry and Tourism will allocate to ten Special Modernization Programs (PEM). These funds, granted at zero interest and without guarantees, will be repaid in line with Defense payments and distributed over several years, some until 2031. The package is part of Spain’s commitment to the United States to reach 2% of GDP in defense and strengthens Indra as the main technological driver of the sector.
In addition to the company chaired by Ángel Escribano, other beneficiaries will include Escribano Mechanical & Engineering, participating in at least three projects, as well as Telefónica, GMV, Epicom, and Cipherbit. The projects cover everything from telecommunications and cybersecurity systems to ammunition vehicles, command and control systems, ground combat, and missile defense, according to the Industrial and Technological Plan for Security and Defense. In total, these initiatives will mobilize €13 billion and generate more than 23,000 direct jobs and 60,000 indirect jobs.
This deployment comes in a context marked by international tensions and the need to meet military spending commitments, especially in projects such as the 8x8 armored vehicles, which have faced delays and technical issues in recent months.
The Spanish defense sector closed 2024 with record highs: consolidated revenues of €16.153 billion, a year-on-year growth of 16.2%, although it remains concentrated in major companies such as Airbus, Navantia, and Indra. The direct allocation of the credits reinforces Indra’s position as a central hub for technological modernization of the Armed Forces.
Technical Analysis: Indra (Ticker AT:IDR.es)
Indra’s stock has maintained bullish momentum in recent months, driven by defense contract announcements, reaching session highs last Friday:
Key Supports: €38.64 and the point of control (POC) area around €34.92, levels where it could stabilize in the event of corrections.
Resistances: Around the highs at €41.34, a level that could trigger a free upward move.
Indicators: RSI at 60.29%, positive MACD, volume decreasing since the beginning of the month. The moving average crossover on September 23 has kept the range wide, supporting the price above the 50-day moving average.
The ActivTrades Europe Market Pulse indicator signals a Risk Neutral/Mixed market, indicating general stability in the European market.
Conclusion:
Indra consolidates its position as the benchmark of the Spanish defense sector, playing a leading role in strategic state-funded programs. The company combines institutional backing, technological growth, and stock market appeal, although program execution and technical delays will be key factors to monitor in the coming years.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
The Indra Group (AIR.MC) has become the major player in the Spanish defense sector by securing the entirety of the new €4.7 billion loans that the Ministry of Industry and Tourism will allocate to ten Special Modernization Programs (PEM). These funds, granted at zero interest and without guarantees, will be repaid in line with Defense payments and distributed over several years, some until 2031. The package is part of Spain’s commitment to the United States to reach 2% of GDP in defense and strengthens Indra as the main technological driver of the sector.
In addition to the company chaired by Ángel Escribano, other beneficiaries will include Escribano Mechanical & Engineering, participating in at least three projects, as well as Telefónica, GMV, Epicom, and Cipherbit. The projects cover everything from telecommunications and cybersecurity systems to ammunition vehicles, command and control systems, ground combat, and missile defense, according to the Industrial and Technological Plan for Security and Defense. In total, these initiatives will mobilize €13 billion and generate more than 23,000 direct jobs and 60,000 indirect jobs.
This deployment comes in a context marked by international tensions and the need to meet military spending commitments, especially in projects such as the 8x8 armored vehicles, which have faced delays and technical issues in recent months.
The Spanish defense sector closed 2024 with record highs: consolidated revenues of €16.153 billion, a year-on-year growth of 16.2%, although it remains concentrated in major companies such as Airbus, Navantia, and Indra. The direct allocation of the credits reinforces Indra’s position as a central hub for technological modernization of the Armed Forces.
Technical Analysis: Indra (Ticker AT:IDR.es)
Indra’s stock has maintained bullish momentum in recent months, driven by defense contract announcements, reaching session highs last Friday:
Key Supports: €38.64 and the point of control (POC) area around €34.92, levels where it could stabilize in the event of corrections.
Resistances: Around the highs at €41.34, a level that could trigger a free upward move.
Indicators: RSI at 60.29%, positive MACD, volume decreasing since the beginning of the month. The moving average crossover on September 23 has kept the range wide, supporting the price above the 50-day moving average.
The ActivTrades Europe Market Pulse indicator signals a Risk Neutral/Mixed market, indicating general stability in the European market.
Conclusion:
Indra consolidates its position as the benchmark of the Spanish defense sector, playing a leading role in strategic state-funded programs. The company combines institutional backing, technological growth, and stock market appeal, although program execution and technical delays will be key factors to monitor in the coming years.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.