Defence stocks to buy: Brokerage firms go bullish on this multibagger for strong gains
Bharat Electronics has emerged as a Father's Day stock pick, backed by strong order inflows, resilient margins, bullish technical charts and positive brokerage views.
- Jun 21, 2026,
- Updated Jun 21, 2026 1:05 PM IST
Domestic brokerage firm Choice Broking Research has a picked state-run defence major Bharat Electronics Ltd (BEL) as its pick for Father's day 2026. Not only Choice Broking, but analysts from other brokerage also, both technical and fundamental, continue to remain positive on the counter.
BEL continues to exhibit a strong bullish structure on the weekly chart. It has been consolidating near its higher levels after a strong upmove and is showing signs of renewed buying interest. The trend remains positive, supported by a sustained higher-high, higher-low formation, indicating strength in the medium to long-term outlook, said Choice Broking.
"It continues to trade comfortably above its key 20, 50 and 200 Week EMAs, reflecting strong trend strength and healthy accumulation. The rising EMA structure suggests that the broader uptrend remains intact, while recent price action indicates buyers are actively defending lower levels. Strong support is placed at Rs 398, which is expected to act as a key demand area," it said.
A decisive breach below this support zone may weaken the bullish structure and indicate further downside pressure. Momentum indicators remain constructive, with RSI near the midpoint and showing signs of recovery, signalling improving momentum. Investors may consider accumulating BEL on declines up to Rs 421 for targets of Rs 470-491 over the coming months, Choice added.
Shares of Bharat Electronics settled at Rs 427.15 on Friday, down one-third a per cent, commanding a market capitalization of Rs 3.15 lakh crore. The stock is down 10 per cent from its 52-week high at Rs 473.25, hit on March 06, 2026. The stock is up only 5 per cent in the last one year, while it has soared more than 775 per cent in the last five year period.
Bharat Electronics has confirmed a decisive consolidation breakout above the Rs 418 zone, signalling a resumption of the broader uptrend. Prior to the breakout, the stock found strong support in the Rs 400-410 region, coinciding with both the 200 EMA and a key horizontal support level, indicating robust demand at lower levels, said Vishnu Kant Upadhyay, AVP of Research at Master Capital Services.
"The breakout was accompanied by a sharp surge in volumes, highlighting strong accumulation and market participation. The stock continues to maintain a favourable higher high higher low structure, while RSI at 57 reflects improving momentum and supports the potential for further upside," he added, suggesting a target price of Rs 470 with a stop loss of Rs 402.
BEL reported a net profit of Rs 2,203.16 crore, up 4.67 per cent on a yearly (YoY) basis, while operational revenue rose 11.59 per cent YoY to Rs 10,177.17 crore for the quarter ended on March 31, 2026. Ebitda for the quarter came in at Rs 2,982 crore, up 5.9 per cent YoY with margins standing at 29.2 per cent. It announced a dividend of Rs 0.55 per share with an order book of 73,882 crore.
BEL’s strong execution trajectory continues, supported by a healthy order book and robust FY27 inflow guidance, led by QRSAM, NGC, P-75I, and EW programs. Opportunities in AMCA, UAVs, and exports further enhance growth visibility, said Geojit Investments in its report released in May 2026.
"Margins remain resilient, driven by improved product mix, high indigenization (80–85 per cent), and a greater share of technology-intensive programs. We retain a positive outlook on BEL’s earnings visibility and competitive positioning. We value BEL at 46 times FY28E EPS, with a 'buy' rating and target price of Rs 504," it added.
Domestic brokerage firm Choice Broking Research has a picked state-run defence major Bharat Electronics Ltd (BEL) as its pick for Father's day 2026. Not only Choice Broking, but analysts from other brokerage also, both technical and fundamental, continue to remain positive on the counter.
BEL continues to exhibit a strong bullish structure on the weekly chart. It has been consolidating near its higher levels after a strong upmove and is showing signs of renewed buying interest. The trend remains positive, supported by a sustained higher-high, higher-low formation, indicating strength in the medium to long-term outlook, said Choice Broking.
"It continues to trade comfortably above its key 20, 50 and 200 Week EMAs, reflecting strong trend strength and healthy accumulation. The rising EMA structure suggests that the broader uptrend remains intact, while recent price action indicates buyers are actively defending lower levels. Strong support is placed at Rs 398, which is expected to act as a key demand area," it said.
A decisive breach below this support zone may weaken the bullish structure and indicate further downside pressure. Momentum indicators remain constructive, with RSI near the midpoint and showing signs of recovery, signalling improving momentum. Investors may consider accumulating BEL on declines up to Rs 421 for targets of Rs 470-491 over the coming months, Choice added.
Shares of Bharat Electronics settled at Rs 427.15 on Friday, down one-third a per cent, commanding a market capitalization of Rs 3.15 lakh crore. The stock is down 10 per cent from its 52-week high at Rs 473.25, hit on March 06, 2026. The stock is up only 5 per cent in the last one year, while it has soared more than 775 per cent in the last five year period.
Bharat Electronics has confirmed a decisive consolidation breakout above the Rs 418 zone, signalling a resumption of the broader uptrend. Prior to the breakout, the stock found strong support in the Rs 400-410 region, coinciding with both the 200 EMA and a key horizontal support level, indicating robust demand at lower levels, said Vishnu Kant Upadhyay, AVP of Research at Master Capital Services.
"The breakout was accompanied by a sharp surge in volumes, highlighting strong accumulation and market participation. The stock continues to maintain a favourable higher high higher low structure, while RSI at 57 reflects improving momentum and supports the potential for further upside," he added, suggesting a target price of Rs 470 with a stop loss of Rs 402.
BEL reported a net profit of Rs 2,203.16 crore, up 4.67 per cent on a yearly (YoY) basis, while operational revenue rose 11.59 per cent YoY to Rs 10,177.17 crore for the quarter ended on March 31, 2026. Ebitda for the quarter came in at Rs 2,982 crore, up 5.9 per cent YoY with margins standing at 29.2 per cent. It announced a dividend of Rs 0.55 per share with an order book of 73,882 crore.
BEL’s strong execution trajectory continues, supported by a healthy order book and robust FY27 inflow guidance, led by QRSAM, NGC, P-75I, and EW programs. Opportunities in AMCA, UAVs, and exports further enhance growth visibility, said Geojit Investments in its report released in May 2026.
"Margins remain resilient, driven by improved product mix, high indigenization (80–85 per cent), and a greater share of technology-intensive programs. We retain a positive outlook on BEL’s earnings visibility and competitive positioning. We value BEL at 46 times FY28E EPS, with a 'buy' rating and target price of Rs 504," it added.