Defence Stocks: HAL, BEL, BDL, Mazagon Dock — What’s The Long-Term Outlook?

India’s defence sector could be entering a multi-year growth phase, supported by rising procurement orders, greater indigenisation and stronger defence exports. Avinash Gorakshakar believes companies such as HAL, Bharat Electronics, Bharat Dynamics, Cochin Shipyard, Mazagon Dock and Garden Reach Shipbuilders could benefit from healthy order books and fresh orders over the next two to three years. However, after significant stock price gains, investors may face short-term volatility. A staggered investment approach could help investors build exposure to the sector instead of entering all at once. The long-term defence growth story remains strong, supported by the government’s push for local production.