BEL, BDL, HAL, DCX Systems, Data Patterns, Zen Tech, other defence stocks: Buy, sell or hold?
Meanwhile, DCX Systems is tagged with a 'Sell' rating from Choice, carrying a target price of Rs 150.
- Jun 5, 2026,
- Updated Jun 5, 2026 12:31 PM IST
Following the Q4FY26 corporate earnings season, brokerage firm Choice Institutional Equities released a sectoral review. Despite temporary top-line stagnation across multiple defense players due to program delivery cycles, Choice maintained a ‘Positive’ sector outlook.
According to Choice, the aggregate Q4FY26 revenue of its defence coverage universe came in at Rs 26,672.8 crore, which was flat on a year-on-year basis (-0.8%) and missed consensus estimates 3.1%.
The domestic brokerage firm noted that it was concentrated in companies like Bharat Dynamics Ltd (BDL), DCX Systems Ltd, and Zen Technologies Ltd due to the variability in programme delivery timing. However, aggregate EBITDA beat estimates by approx 1%, with cumulative PAT growing 2.5% YoY.
Defence stocks target prices
Brokerage firm Choice has issued 'Buy' ratings for the select heavyweights. For Hindustan Aeronautics Ltd (HAL), Choice has maintained a 'Buy' rating with a target price of Rs 5,050. Bharat Electronics Ltd (BEL) tagged a 'Buy' rating with a target price of Rs 500.
BDL is also rated a 'Buy' with a target price of Rs 1,500. Completing the buy list, Zen Technologies is rated a 'Buy' with a target price of Rs 1,850.
While Data Patterns Ltd has been assigned an 'Add' rating with a target price of Rs 4,060. Centum Electronics alse secured an 'Add' rating with a target price of Rs 3,300. Apollo Micro Systems Ltd is similarly positioned with an 'Add' rating and a target price of Rs 365.
In contrast, Astra Microwave Products Ltd has been handed a 'Reduce' rating with a target price of Rs 1,300. Azad Engineering Ltd received a 'Reduce' rating with a target price of Rs 1,900. Meanwhile, DCX Systems is tagged with a 'Sell' rating from Choice, carrying a target price of Rs 150.
Following the Q4FY26 corporate earnings season, brokerage firm Choice Institutional Equities released a sectoral review. Despite temporary top-line stagnation across multiple defense players due to program delivery cycles, Choice maintained a ‘Positive’ sector outlook.
According to Choice, the aggregate Q4FY26 revenue of its defence coverage universe came in at Rs 26,672.8 crore, which was flat on a year-on-year basis (-0.8%) and missed consensus estimates 3.1%.
The domestic brokerage firm noted that it was concentrated in companies like Bharat Dynamics Ltd (BDL), DCX Systems Ltd, and Zen Technologies Ltd due to the variability in programme delivery timing. However, aggregate EBITDA beat estimates by approx 1%, with cumulative PAT growing 2.5% YoY.
Defence stocks target prices
Brokerage firm Choice has issued 'Buy' ratings for the select heavyweights. For Hindustan Aeronautics Ltd (HAL), Choice has maintained a 'Buy' rating with a target price of Rs 5,050. Bharat Electronics Ltd (BEL) tagged a 'Buy' rating with a target price of Rs 500.
BDL is also rated a 'Buy' with a target price of Rs 1,500. Completing the buy list, Zen Technologies is rated a 'Buy' with a target price of Rs 1,850.
While Data Patterns Ltd has been assigned an 'Add' rating with a target price of Rs 4,060. Centum Electronics alse secured an 'Add' rating with a target price of Rs 3,300. Apollo Micro Systems Ltd is similarly positioned with an 'Add' rating and a target price of Rs 365.
In contrast, Astra Microwave Products Ltd has been handed a 'Reduce' rating with a target price of Rs 1,300. Azad Engineering Ltd received a 'Reduce' rating with a target price of Rs 1,900. Meanwhile, DCX Systems is tagged with a 'Sell' rating from Choice, carrying a target price of Rs 150.