Manufacturing is emerging as a key investment theme for 2026, aligned with India’s ambition to become a global manufacturing hub under the “Make in India, Make for the World” vision. The focus is on companies positioned to benefit from global brands shifting production to India. Dixon Technologies, a leader in the electronics manufacturing services (EMS) space, stands out despite recent price corrections. Strong management, growing outsourcing demand from global brands and improving quarterly performance support its outlook. The second pick is Hindustan Aeronautics Limited (HAL), a PSU defence major that could gain from rising defence manufacturing and potential joint ventures, including discussions around aircraft production in India. Together, Dixon and HAL offer exposure to India’s manufacturing push - from consumer electronics to defence - making them compelling long-term bets for 2026.
Domestic brokerage firms including Anand Rathi Share & Stock Brokers and Motilal Oswal Financial Services (MOFSL) continue to remain positive on select defence counters.
B&K Securities this week initiated coverage on Hindustan Aeronautics with a 'Buy' and a target price of Rs 5,610. India’s defence-aerospace landscape is at an inflection point, it said.
An analyst from YES Securities said that Mazagon Dock is showing bearish signals on the weekly timeframe, indicating a downtrend and the stock is currently positioned for a breakdown.
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.
MOFSL retained 'Buy' ratings on Bharat Electronics (BEL), Bharat Dynamics (BDL) and Hindustan Aeronautics (HAL), while keeping a 'Neutral' stance on Zen Technologies Ltd.
In January this year, HAL unveiled a full-scale prototype of the U-CAV, marking significant progress for the programme.
Shares of Hindustan Aeronautics cracked nearly 9 per cent at the opening tick on Monday after a Tejas fighter jet crashed during a performance during the Dubai Air Show 2025 on Friday.
HAL shares target price: Brokerage firms continued to remain positive on Hindustan Aeronautics shares and see up to 33 per cent upside in the state-run defence major.
The company’s consolidated net profit rose 10.5 per cent year-on-year (YoY) to Rs 1,669.05 crore in Q2FY26, compared with Rs 1,510.49 crore in the corresponding quarter last year.
Stocks including Tata Motors, Groww, Tata Steel, BSE, Tata Power, Fortis Healthcare, RVNL, Awfis Space, and more will be in the spotlight on Wednesday, November 12.





