Are Defence Stocks Poised For A Strong Rally? Key Picks To Watch For 2026 Growth

Sharad Avasthi, Head of Research (PCG) at SMIFS, shared his outlook on defense sector stocks, particularly BEL, BDL, HAL, and BEML. He noted that while the long-term potential of defense stocks remains strong, driven by India’s growing role as a defense exporter, stocks like BEL and BDL may now be fairly valued. Avasthi prefers HAL for its strong competitive advantage and higher growth potential, even at expensive valuations, with a 3-5 year view. He also highlighted BEML as a top pick, with a target of ₹2500-2600, citing its unique mix of defense, construction, and mining equipment.