BEL, HAL, BDL, Mazagon Dock: Target prices, defence stocks to buy after Rs 52,000 cr DAC approvals
Antique identified BDL, BEL and Solar Industries as potential beneficiaries. It maintained its 'Buy' on defence stocks namely Mazagon Dock Shipbuilders, HAL, BEL, BDL, Zen Tech Ltd, Solar Industries and PTC Industries.
- Jul 6, 2026,
- Updated Jul 6, 2026 8:40 AM IST
Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL) and Solar Industries India Ltd are expected to be key beneficiaries of the Defence Acquisition Council (DAC)'s approval of capital equipment procurement proposals worth Rs 52,000 crore.
Analysts said the focus of fresh approvals is on air defence (Akash Tarang, VSHORAD, and MRSAMs) against unmanned vehicles; precision strike capability (Kamikaze drones) and superior aerial surveillance (HAPS). Key approvals included the acquisition of Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System, Man Portable Anti-Tank Guided Missile (MPATGM) Systems, and MR-SAM, they noted.
Following the approval, Antique Stock Broking identified BDL, BEL and Solar Industries as potential beneficiaries. The brokerage maintained its 'Buy' ratings on defence stocks namely Mazagon Dock Shipbuilders, Hindustan Aeronautics Ltd (HAL), BEL, BDL, Zen Technologies Ltd, Solar Industries and PTC Industries. Motilal Oswal Financial Services (MOFSL) has BEL as top defence stock pick post the DAC approval. This brokerage maintained its 'Buy' on BEL, HAL, Astra Microwave and 'Neutral' on BDL and Zen Technologies.
Antique said BDL is well-positioned to benefit from acquisition of Man Portable Anti-Tank Guided Missile (MPATGM) Systems since it is the primary manufacturer of ATGMs. These systems are required in sizeable numbers annually for training purposes, it noted. MR-SAMs can be another opportunity for BDL as a lead integrator; the company is already executing a MRSAM order worth Rs 2960 crore, Antique noted.
"With project approvals worth Rs 12.5 lakh crore in FY24-26, we believe defence companies have strong growth opportunities in the foreseeable timeframe," Antique said.
Among defence stocks, it suggested target of Rs 1,558 for BEL, Rs 2,245 for BEML, Rs 532 for BEL, Rs 1,693 for Cochin Shipyard, Rs 3,141 for GRSE, Rs 5,706 for HAL, Rs 3,275 for Mazagon Dock and Rs 18,633 for Solar Industries. The brokerage finds PTC Industries and Zen Tech worth Rs 24,415 and Rs 1,700, respectively.
MOFSL said the AoN approvals, coupled with those granted over the last two years, would increase the overall addressable market for domestic players and enhance order inflow visibility. The domestic brokerage said BEL expects to receive Rs 30,000 crore QRSAM order over the next few weeks. Subsequent orders related to QRSAM will be awarded thereafter. These include BDL for missiles, Astra Microwave Products for TR modules and EW subsystems, and Apollo Microsystem for on-board computers and navigation systems, etc.
"The INR900b P75I submarine deal is in the final stages of negotiation, with contract signing expected by Sep’26. The submarines will be constructed by Mazagon Dock in partnership with ThyssenKrupp. BEL anticipates the electronics portion to account for 25-30 per cent of the total project cost and expects to cater to 50-60 per cent of it," MOFSL said.
Besides, the domestic brokerage noted that price negotiation for next-generation corvette orders has been completed, and the project is on the cusp of receiving final approvals from CCS.
MOFSL said BEL trades at 43.5 times on FY27 earnings, as it suggested a target price of Rs 510 on the stock. This brokerage suggested a target of Rs 5,500 on the stock. MOFSL is 'Neutral' on BDL with a target of Rs 1,250, based on the 42x two-year forward earnings.
MOFSL has 'Buy' on Astra Microwave with a target of Rs 1,715. It finds ZEN Tech worth Rs 1,600.
Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL) and Solar Industries India Ltd are expected to be key beneficiaries of the Defence Acquisition Council (DAC)'s approval of capital equipment procurement proposals worth Rs 52,000 crore.
Analysts said the focus of fresh approvals is on air defence (Akash Tarang, VSHORAD, and MRSAMs) against unmanned vehicles; precision strike capability (Kamikaze drones) and superior aerial surveillance (HAPS). Key approvals included the acquisition of Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System, Man Portable Anti-Tank Guided Missile (MPATGM) Systems, and MR-SAM, they noted.
Following the approval, Antique Stock Broking identified BDL, BEL and Solar Industries as potential beneficiaries. The brokerage maintained its 'Buy' ratings on defence stocks namely Mazagon Dock Shipbuilders, Hindustan Aeronautics Ltd (HAL), BEL, BDL, Zen Technologies Ltd, Solar Industries and PTC Industries. Motilal Oswal Financial Services (MOFSL) has BEL as top defence stock pick post the DAC approval. This brokerage maintained its 'Buy' on BEL, HAL, Astra Microwave and 'Neutral' on BDL and Zen Technologies.
Antique said BDL is well-positioned to benefit from acquisition of Man Portable Anti-Tank Guided Missile (MPATGM) Systems since it is the primary manufacturer of ATGMs. These systems are required in sizeable numbers annually for training purposes, it noted. MR-SAMs can be another opportunity for BDL as a lead integrator; the company is already executing a MRSAM order worth Rs 2960 crore, Antique noted.
"With project approvals worth Rs 12.5 lakh crore in FY24-26, we believe defence companies have strong growth opportunities in the foreseeable timeframe," Antique said.
Among defence stocks, it suggested target of Rs 1,558 for BEL, Rs 2,245 for BEML, Rs 532 for BEL, Rs 1,693 for Cochin Shipyard, Rs 3,141 for GRSE, Rs 5,706 for HAL, Rs 3,275 for Mazagon Dock and Rs 18,633 for Solar Industries. The brokerage finds PTC Industries and Zen Tech worth Rs 24,415 and Rs 1,700, respectively.
MOFSL said the AoN approvals, coupled with those granted over the last two years, would increase the overall addressable market for domestic players and enhance order inflow visibility. The domestic brokerage said BEL expects to receive Rs 30,000 crore QRSAM order over the next few weeks. Subsequent orders related to QRSAM will be awarded thereafter. These include BDL for missiles, Astra Microwave Products for TR modules and EW subsystems, and Apollo Microsystem for on-board computers and navigation systems, etc.
"The INR900b P75I submarine deal is in the final stages of negotiation, with contract signing expected by Sep’26. The submarines will be constructed by Mazagon Dock in partnership with ThyssenKrupp. BEL anticipates the electronics portion to account for 25-30 per cent of the total project cost and expects to cater to 50-60 per cent of it," MOFSL said.
Besides, the domestic brokerage noted that price negotiation for next-generation corvette orders has been completed, and the project is on the cusp of receiving final approvals from CCS.
MOFSL said BEL trades at 43.5 times on FY27 earnings, as it suggested a target price of Rs 510 on the stock. This brokerage suggested a target of Rs 5,500 on the stock. MOFSL is 'Neutral' on BDL with a target of Rs 1,250, based on the 42x two-year forward earnings.
MOFSL has 'Buy' on Astra Microwave with a target of Rs 1,715. It finds ZEN Tech worth Rs 1,600.