Defence Stocks Still Have Steam? BEL, Solar Industries Among Top Picks

India’s defence sector continues to be one of the most structurally strong long-term themes, supported by aggressive government spending, indigenization, and strong execution visibility. According to market expert Ashish Chaturmohta, the defence rally is far from over, provided investors stay selective. Companies with solid order books, strong execution, and stable margins are likely to lead the next leg of growth. He highlights Bharat Electronics (BEL) as a standout name, driven by a robust order pipeline, strong operating cash flows, and consistently healthy margins. Solar Industries, which derives nearly 20% of revenues from defence and is expected to grow further, also looks attractive after recent corrections. With improving working capital cycles and favourable risk–reward, defence remains a compelling multi-year opportunity - but stock selection is key.