Defence Stocks: HAL, BEL, Mazagon Dock Among Top PSU Picks; What’s Driving The Bull Case?

Defence stocks remain in focus as strong government support, rising order books and improving execution could drive growth across the sector. Dharmesh Kant, Head of Equity Research, Chola Securities, highlights Hindustan Aeronautics, Bharat Electronics and Mazagon Dock as preferred PSU defence picks. HAL could benefit from new aircraft and helicopter programmes, while BEL’s radar and defence electronics business remains well placed. Mazagon Dock is being closely watched for a potential ThyssenKrupp joint venture, which could unlock a significant submarine opportunity. With the listed defence sector carrying strong book-to-bill ratios, improving deliveries and order execution could support earnings growth going forward.