GRSE, Mazagon Dock, Cochin Shipyard, HAL, BEL, BDL: Why defence stocks rallied today; target prices
Garden Reach Shipbuilders & Engineers Ltd (GRSE) zoomed 19.75 per cent to Rs 2,360. This stock also gained as the company said it recorded the highest annual turnover in its history for FY26.
- Apr 1, 2026,
- Updated Apr 1, 2026 4:44 PM IST
Defence stocks, especially the shipping names, hogged limelight on Wednesday, rising up to 20 per cent, as host of brokerages cited growth opportunities in the defence sector following the recent Acceptance of Necessity (AoN) by Defence Acquisition Council (DAC) on Rs 2.38 lakh crore worth capital acquisitions.
With project approvals worth Rs 6.7 lakh crore in FY26, Antique Stock Broking on Wednesday said defence companies have strong growth opportunities in the foreseeable timeframe. It maintained 'Buy' rating on Mazagon Dock Shipbuilders Ltd, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Zen Technologies Ltd, Solar Industries, and PTC Industries.
Defence stocks rally up to 20% Among shipping names, Garden Reach Shipbuilders & Engineers Ltd (GRSE) zoomed 19.75 per cent to Rs 2,360. This stock also gained as the company said it recorded the highest annual turnover in its history for FY26, amounting to Rs 6,400 crore compared with Rs 5,076 crore in FY25.
Mazagon Dock shares soared 12.26 per cent to Rs 2,317.25. Cochin Shipyard Ltd settled the day at Rs 1,338.80, up 12.12 per cent. BEL advanced 4.54 per cent to Rs 418.80. HAL climbed 5.29 per cent to Rs 3,670.75. BDL surged 9.84 per cent to Rs 1,204.85.
Defence stock price targets For Bharat Dynamics Ltd, Antique suggested a target of Rs 1,729. The brokerage suggested a target of Rs 2,246 on BEML, a target of Rs 532 on Bharat Electronics Ltd and a target of Rs 1,353 on Cochin Shipyard (Hold). Antique valued GRSE at Rs 3,026. Hindustan Aeronautics Ltd at Rs 5,841, Mazagon Dock at Rs 3,407, Zen Tech at Rs 1,800 and SOIL at Rs 16,600.
On shipping sector, Ashika Institutional Equities in a fresh note said India’s warship building sector is entering a structural multi-decade upcycle, driven by a strong naval modernisation pipeline, indigenisation push and a targeted expansion towards 200-plus ship fleet. This, it said, creates robust order visibility, with a large pipeline spanning surface combatants, submarines and next-generation platforms, alongside a 15–20-year replacement cycle for ageing assets.
"Against this backdrop, Mazagon Dock Shipbuilders Ltd, Garden Reach Shipbuilders & Engineers Limited and Cochin Shipyard Ltd are well positioned to capitalise on this opportunity, each leveraging distinct competitive strengths," the domestic brokerage said.
Ashika suggested 'Buy' on Mazagon Dock and GRSE with targets of Rs 2,935 and Rs 2,730, suggesting up to 42 per cent upsides. It did not rate Cochin Shipyard.
B&K Securities gave a 'Buy' rating to HAL, with an unchanged target price of Rs 5,467, based on 34 times December 2027 earnings. For BEL, it suggested an unchanged target price of Rs 513, based on 45 times December 2027 earnings. BDL, which is assigned Hold is given a target of Rs 1,278, based on 42 times December 2027 earnings.
Key beneficiaries of AoN said Kotak Institutional Equities, there are three to four orders in which Bharat Electronics Ltd (BEL) will be a key participant, with a few orders potentially for the likes of Hindustan Aeronautics Ltd (HAL), Larsen & Toubro Ltd (L&T) and Garden Reach Shipbuilders & Engineers Ltd (GRSE).
"With this approval, YTD FY2026 AoN clearances have surged to Rs 9.3 lakh crore, nearly four times of last year (Rs 2.5 lakh crore), highlighting a clear push to modernise India’s military infrastructure. However, order finalization of major programs such as P-75I submarine (MDL), next-generation corvette (GRSE) and QRSAM (BEL & BDL) seemed to be potentially pushed out to FY2027," Kotak said.
B&K Securities earlier said the AoN tranche has reinforced three clear themes: deeper air defence layering, accelerated unmanned and ISR capabilities, and sustained localisation via Buy & Make - all of which continue to underpin a multi-year opportunity for the domestic defence ecosystem. This broking firm suggested 'Buy' on Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) and 'Hold' on Bharat Dynamics Ltd (BDL).
Defence stocks, especially the shipping names, hogged limelight on Wednesday, rising up to 20 per cent, as host of brokerages cited growth opportunities in the defence sector following the recent Acceptance of Necessity (AoN) by Defence Acquisition Council (DAC) on Rs 2.38 lakh crore worth capital acquisitions.
With project approvals worth Rs 6.7 lakh crore in FY26, Antique Stock Broking on Wednesday said defence companies have strong growth opportunities in the foreseeable timeframe. It maintained 'Buy' rating on Mazagon Dock Shipbuilders Ltd, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Zen Technologies Ltd, Solar Industries, and PTC Industries.
Defence stocks rally up to 20% Among shipping names, Garden Reach Shipbuilders & Engineers Ltd (GRSE) zoomed 19.75 per cent to Rs 2,360. This stock also gained as the company said it recorded the highest annual turnover in its history for FY26, amounting to Rs 6,400 crore compared with Rs 5,076 crore in FY25.
Mazagon Dock shares soared 12.26 per cent to Rs 2,317.25. Cochin Shipyard Ltd settled the day at Rs 1,338.80, up 12.12 per cent. BEL advanced 4.54 per cent to Rs 418.80. HAL climbed 5.29 per cent to Rs 3,670.75. BDL surged 9.84 per cent to Rs 1,204.85.
Defence stock price targets For Bharat Dynamics Ltd, Antique suggested a target of Rs 1,729. The brokerage suggested a target of Rs 2,246 on BEML, a target of Rs 532 on Bharat Electronics Ltd and a target of Rs 1,353 on Cochin Shipyard (Hold). Antique valued GRSE at Rs 3,026. Hindustan Aeronautics Ltd at Rs 5,841, Mazagon Dock at Rs 3,407, Zen Tech at Rs 1,800 and SOIL at Rs 16,600.
On shipping sector, Ashika Institutional Equities in a fresh note said India’s warship building sector is entering a structural multi-decade upcycle, driven by a strong naval modernisation pipeline, indigenisation push and a targeted expansion towards 200-plus ship fleet. This, it said, creates robust order visibility, with a large pipeline spanning surface combatants, submarines and next-generation platforms, alongside a 15–20-year replacement cycle for ageing assets.
"Against this backdrop, Mazagon Dock Shipbuilders Ltd, Garden Reach Shipbuilders & Engineers Limited and Cochin Shipyard Ltd are well positioned to capitalise on this opportunity, each leveraging distinct competitive strengths," the domestic brokerage said.
Ashika suggested 'Buy' on Mazagon Dock and GRSE with targets of Rs 2,935 and Rs 2,730, suggesting up to 42 per cent upsides. It did not rate Cochin Shipyard.
B&K Securities gave a 'Buy' rating to HAL, with an unchanged target price of Rs 5,467, based on 34 times December 2027 earnings. For BEL, it suggested an unchanged target price of Rs 513, based on 45 times December 2027 earnings. BDL, which is assigned Hold is given a target of Rs 1,278, based on 42 times December 2027 earnings.
Key beneficiaries of AoN said Kotak Institutional Equities, there are three to four orders in which Bharat Electronics Ltd (BEL) will be a key participant, with a few orders potentially for the likes of Hindustan Aeronautics Ltd (HAL), Larsen & Toubro Ltd (L&T) and Garden Reach Shipbuilders & Engineers Ltd (GRSE).
"With this approval, YTD FY2026 AoN clearances have surged to Rs 9.3 lakh crore, nearly four times of last year (Rs 2.5 lakh crore), highlighting a clear push to modernise India’s military infrastructure. However, order finalization of major programs such as P-75I submarine (MDL), next-generation corvette (GRSE) and QRSAM (BEL & BDL) seemed to be potentially pushed out to FY2027," Kotak said.
B&K Securities earlier said the AoN tranche has reinforced three clear themes: deeper air defence layering, accelerated unmanned and ISR capabilities, and sustained localisation via Buy & Make - all of which continue to underpin a multi-year opportunity for the domestic defence ecosystem. This broking firm suggested 'Buy' on Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) and 'Hold' on Bharat Dynamics Ltd (BDL).