BEL, HAL, BDL, PTC Industries, Midhani, Astra Microwave: Share price targets for defence stocks

 Defence stocks: ICICI Securities has maintained its structurally positive stance on the Indian defence sector, saying air-defence and navy-related segments may perform relatively better going ahead. The domestic brokerage said government policies remained firmly supportive, evidenced by the Ministry of Defence's Rs 3 lakh crore capital outlay target by 2029. 

This support implies a sustained double-digit compounded annually in defence capex, ICICI Securities said as it picked Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), Astra Microwave and Solar Industries Ltd as its top picks from the defence sector. Overall, the brokerage has 'Buy' on five defence stocks including HAL, Mishra Dhatu Nigam Limited (MIDHANI), Astra Microwave, PTC Industries and Solar Industries. It has 'Add' rating on stocks such as Azad Engineering, Bharat Dynamics Ltd (BDL), BEL and Zen Technologies. ICICI Securities recommended 'Sell' on Dynamatic Technologies. Here are share price targets for 10 defence stocks:-  

ICICI Securities said the recent Defence Procurement Manual 2025, acquisition timelines are expected to be significantly compressed. 

"Given that DAC approvals were at all-time high in FY26, we expect the order awarding momentum to pick up in FY27/28, especially in aerospace, missiles, electronic warfare and drone defence/offence side as the fabric of warfare has changed completely in the past couple of years. Navy may receive the long-awaited Rs 70,000 crore submarine orders soon. The geopolitical backdrop continues to provide a structural tailwind, as the conflict in the Middle East has reinforced defence budget urgency across GCCs," ICICI Securities said. 

The domestic brokearge said Indian OEMs with established export track records or MoUs are likely to benefit disproportionality, especially in the areas of missiles, drones, aerospace, defence electronics and radars. 

Among the recent sectoral updates, the Ministry of Finance has approved P-75I (Stealth Submarine) programme, now only CSS approvals are remaining for official contracting. Besides, India has signed BrahMos deal with Vietnam and BEL received a cumulative order worth Rs 2,100 crore for various systems and sub-systems. 

Also, MDSL delivered 6th and the final stealth frigate of P-17A programme; GRSE has launched 1st NG-OPV out of 11 ordered; and  Zen Tech has emerged as the lowest bidder in the remote-controlled weapon stations project of AVNL.