BHEL, HAL, Astra Microwave, Zen Technologies: Defence stocks in focus; price targets and more
MOSL listed BHEL, Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Astra Microwave and Zen Technologies as its major picks post the DAC's approval.
- Mar 30, 2026,
- Updated Mar 30, 2026 11:24 AM IST
Shares of defence firms are in focus today after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, gave its nod to various proposals worth an estimated cost of about Rs 2.38 lakh crore. This includes S-400 long range surface-to-air missile system and overhaul of Su-30 aero engine aggregates.
The continuous DAC approvals for enhancing defence capabilities has brought defence stocks in focus today.
Post this, Brokerage Motilal Oswal said it maintains positive stance on the defence sector and termed Bharat Electronics as its top pick.
MOSL listed BHEL, Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Astra Microwave and Zen Technologies as its major picks post the DAC's approval.
Here's a look at the price targets and rationale behind the positive stance for these defence stocks.
BHEL The PSU stock is currently trading at 41.5x/35.4x on FY27E/FY28E EPS. MOSL maintained its estimates and reiterated BUY rating on the stock with an unchanged price target of Rs 520, based on the 45 times two-year forward earnings.
Hindustan Aeronautics The defence stock is currently trading at 23.5x/19.0x on FY27E/FY28E EPS. The brokearge maintained its estimates and reiterated BUY rating on the stock with an unchanged TP of Rs 5,500, based on the average of DCF and 30x two-year forward earnings.
"We would reassess our estimates once we have more clarity on Tejas deliveries," said MOSL.
Bharat Dynamics Limited
Shares of Bharat Dynamics are trading at 36.2x/25.4x on FY27E/FY28E EPS. The brokerage maintained its estimates and reiterated BUY rating on the stock with an unchanged price target of Rs 1,800, based on the 42 times two-year forward earnings.
Astra Microwave (AMPL)
The defence stock is currently trading at 37.1x/29.1x on FY27E/FY28E EPS. "We maintain our estimates and reiterate our BUY rating on the stock with an unchanged TP of Rs 1,150, based on the 38x two-year forward earnings," said MOSL.
Zen Technologies
Zen Technologies shares currently trade at 36.7x/28.1x on FY27E/FY28E EPS. The brokerage maintained its estimates and reiterated its Neutral rating on the stock with an unchanged TP of Rs 1,400, based on the 30x two-year forward earnings. We would reassess.
"We would reassess our estimates once we have more clarity on order inflow and subsidiary performance sustainability," said Zen Technologies.
Shares of defence firms are in focus today after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, gave its nod to various proposals worth an estimated cost of about Rs 2.38 lakh crore. This includes S-400 long range surface-to-air missile system and overhaul of Su-30 aero engine aggregates.
The continuous DAC approvals for enhancing defence capabilities has brought defence stocks in focus today.
Post this, Brokerage Motilal Oswal said it maintains positive stance on the defence sector and termed Bharat Electronics as its top pick.
MOSL listed BHEL, Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Astra Microwave and Zen Technologies as its major picks post the DAC's approval.
Here's a look at the price targets and rationale behind the positive stance for these defence stocks.
BHEL The PSU stock is currently trading at 41.5x/35.4x on FY27E/FY28E EPS. MOSL maintained its estimates and reiterated BUY rating on the stock with an unchanged price target of Rs 520, based on the 45 times two-year forward earnings.
Hindustan Aeronautics The defence stock is currently trading at 23.5x/19.0x on FY27E/FY28E EPS. The brokearge maintained its estimates and reiterated BUY rating on the stock with an unchanged TP of Rs 5,500, based on the average of DCF and 30x two-year forward earnings.
"We would reassess our estimates once we have more clarity on Tejas deliveries," said MOSL.
Bharat Dynamics Limited
Shares of Bharat Dynamics are trading at 36.2x/25.4x on FY27E/FY28E EPS. The brokerage maintained its estimates and reiterated BUY rating on the stock with an unchanged price target of Rs 1,800, based on the 42 times two-year forward earnings.
Astra Microwave (AMPL)
The defence stock is currently trading at 37.1x/29.1x on FY27E/FY28E EPS. "We maintain our estimates and reiterate our BUY rating on the stock with an unchanged TP of Rs 1,150, based on the 38x two-year forward earnings," said MOSL.
Zen Technologies
Zen Technologies shares currently trade at 36.7x/28.1x on FY27E/FY28E EPS. The brokerage maintained its estimates and reiterated its Neutral rating on the stock with an unchanged TP of Rs 1,400, based on the 30x two-year forward earnings. We would reassess.
"We would reassess our estimates once we have more clarity on order inflow and subsidiary performance sustainability," said Zen Technologies.