BDL, Solar Industries, BEL, HAL stocks among DAM Capital's top defence picks; multi-decade growth likely
The brokerage said over the next five years, the defence sector will offer opportunities worth Rs 15 lakh crore.
- May 1, 2026,
- Updated May 1, 2026 2:18 PM IST
The Modi government's 'Make in India' push in the defence sector has received thumbs up from brokerage DAM Capital. Initiating coverage on the sector, the brokerage said it is set to see a multi-decade growth. From being import-dependent, the sector has now turned self-reliant and export-focused backed by strong policy support and high budgetary allocation.
The brokerage said over the next five years, the defence sector will offer opportunities worth Rs 15 lakh crore. The escalating geopolitical tension will also act as a key catalyst for the sector’s long-term growth.
According to a Livemint report, five firms, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Mazagon Dock Shipbuilders, and Larsen & Toubro's Precision Engineering & Systems division, are projected to record exports over Rs 172,000 crore in the next five fiscals.
As per defence ministry data, defence exports had hit Rs 138,424 crore in FY26. "With the government targeting Rs 3 trillion in defence production and Rs 50,000 crore in defence exports by financial year 2029, the sector offers significant visibility on scale, growth, and export potential, reinforcing the long-term investment case for India’s defence ecosystem,” DAM Capital said in a note.
While initiating coverage DAM Capital said its top picks in the sector are Astra Microwave Products (buy for a target price of Rs 1,300), Bharat Dynamics (target Rs 1,540), Bharat Electronics (target Rs 530), Hindustan Aeronautics ( target Rs 6,300), Mishra Dhatu Nigam (target Rs 430), Solar Industries (price target Rs 17,060) and Zen Technologies (target Rs 1,990).
The brokerage has maintained a 'Neutral' stance on Garden Reach Shipbuilders & Engineers (target Rs 2,660) and Mazagon Dock Shipbuilders (target Rs 2,770).
The Modi government's 'Make in India' push in the defence sector has received thumbs up from brokerage DAM Capital. Initiating coverage on the sector, the brokerage said it is set to see a multi-decade growth. From being import-dependent, the sector has now turned self-reliant and export-focused backed by strong policy support and high budgetary allocation.
The brokerage said over the next five years, the defence sector will offer opportunities worth Rs 15 lakh crore. The escalating geopolitical tension will also act as a key catalyst for the sector’s long-term growth.
According to a Livemint report, five firms, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Mazagon Dock Shipbuilders, and Larsen & Toubro's Precision Engineering & Systems division, are projected to record exports over Rs 172,000 crore in the next five fiscals.
As per defence ministry data, defence exports had hit Rs 138,424 crore in FY26. "With the government targeting Rs 3 trillion in defence production and Rs 50,000 crore in defence exports by financial year 2029, the sector offers significant visibility on scale, growth, and export potential, reinforcing the long-term investment case for India’s defence ecosystem,” DAM Capital said in a note.
While initiating coverage DAM Capital said its top picks in the sector are Astra Microwave Products (buy for a target price of Rs 1,300), Bharat Dynamics (target Rs 1,540), Bharat Electronics (target Rs 530), Hindustan Aeronautics ( target Rs 6,300), Mishra Dhatu Nigam (target Rs 430), Solar Industries (price target Rs 17,060) and Zen Technologies (target Rs 1,990).
The brokerage has maintained a 'Neutral' stance on Garden Reach Shipbuilders & Engineers (target Rs 2,660) and Mazagon Dock Shipbuilders (target Rs 2,770).