Defence Stocks To Buy: Bel, Hal, Data Patterns, Zen Tech Are Top Analyst Picks

Stock analysts remained mostly optimistic astir prime defence assemblage stocks, citing improved bid flows and caller approvals by nan Defence Acquisition Council (DAC) pursuing Operation Sindoor. The assemblage is benefiting from beardown structural tailwinds, including heightened world nickname of India’s defence capabilities amid caller geopolitical shifts, rising world request for defence exports, accrued NATO spending, Europe’s rearmament drive, and nan Indian government’s continued push for indigenisation.

As a result, brokerages person maintained a broadly affirmative outlook connected nan defence sector.

"We database Solar Industries, Astra Microwave and Azad Engineering arsenic our apical picks successful nan backstage space. Among DPSUs, we for illustration Hindustan Aeronautics (HAL), Bharat Electronics (BEL) and Midhani," ICICI Securities said connected Monday.

The brokerage said galore companies nether its sum person guided for complete 15 per cent gross maturation successful FY26. But immoderate companies for illustration BDL, Solar Industries and Azad Engineering person guided for moreover higher maturation complaint of 25-30 per cent. BEL is expecting bid inflows of Rs 20,000-25,000 crore (ex- QRSAM order) for FY26. HAL is projecting inflows of complete Rs 1 lakh crore, which includes Su-30 upgrade, Tejas Mk-2 and RoH orders.

BDL is expecting orders of Rs 5,000 crore crossed its merchandise categories, GRSE is expecting NG corvette bid of Rs 25,000 crore isolated from different vessels orders. Midhani sees orders of Rs 1,200-1,300 crore, Zen Technologies Rs 800 crore successful H1FY26 and Astra Rs 1,300-1,400 crore.

Ashika Institutional Equities said cardinal beneficiaries of caller approvals see Bharat Dynamics (missile manufacturer), BEL (radar systems and physics warfare), Cochin Shipyard (key subordinate successful underwater & autonomous alloy orders), Mazagon Dock Shipbuilders (Key subordinate successful destroyers & excavation antagonistic vessels), and Garden Reach Shipbuilders & Engineers (chances of gains from patrol alloy contracts), said . Other imaginable beneficiaries are Paras Defence & Space Technologies, Data Patterns, and Astra Microwave, it said.

This brokerage has 'Buy' standing connected Data Patterns.

"We support Buy connected Zen Technologies pinch a target of Rs 2,290, connected 40 times FY27E P/E. Also, Astra Microwave Products and MTAR TECH are witnessing increasing orderbooks and a emergence successful products and capabilities. Opening up of export opportunities aft nan caller conflict could beryllium a rerating catalyst for Zen Tech," Elara Secruities said.

Published on: Jul 7, 2025 10:43 AM IST