Dassault Aviation v/s AVIC Chengdu: Which stock is faring better?
What's the story
The recent military tension between India and Pakistan, especially post India's Operation Sindoor, has led to a spike in investor interest in shares of France's Dassault Aviation. On the contrary, shares of China's AVIC Chengdu Aircraft have declined. On May 7, the Indian Air Force (IAF) used Rafale jets to strike terrorist camps in Pakistani territory, utilizing SCALP and HAMMER missiles. The Rafale fighter jets are produced by Dassault Aviation.
Market reaction
Stock performance amid geopolitical tensions
In light of the recent military escalation, Dassault Aviation's share price has surged over 3% in the past four sessions. This increase is due to boosted investor sentiment after Prime Minister Narendra Modi visited Adampur Air Base and lauded the successful execution of Operation Sindoor. Meanwhile, AVIC Chengdu shares fell over 10% during the same period amid geopolitical tensions and rising uncertainty over Chinese defense stocks after PM Modi's remarks.
Annual returns
Year-to-date performance and defense deals
In 2025, Dassault Aviation shares have returned an impressive 57%, fueled by strong investor confidence and rising exports of Rafale jets. Dr. Ravi Singh from Religare Broking Ltd observed that India and France recently finalized a major defense deal for 26 naval variants of the Rafale fighter. Meanwhile, AVIC Chengdu has also delivered high returns post its listing, with over 30% gains from its listing rate. However, in recent days, the stock has been volatile.
Analyst insights
Technical analysis favors Dassault Aviation
From a technical standpoint, analysts have observed that Dassault Aviation shares show a clear relative strength against AVIC Chengdu. Anshul Jain of Lakshmishree Investment and Securities said while Chengdu share price continues to consolidate, Dassault stock is already displaying strong momentum. He said a breakout above €316 will likely serve as a catalyst, pushing the stock toward the €375 level.