HAL, BDL, Mazagon Dock, Astra Microwave, Data Patterns: HSBC shares target prices for defence stocks

HSBC has initiated coverage on a host of defence stocks including Data Patterns India Ltd, Mazagon Dock Shipbuilders Ltd, Hindustan Aeronautics Ltd (HAL), Astra Microwave and Bharat Dynamics Ltd (BDL). The initiation of coverage comes in the backdrop of a 17.7 per cent surge in the Nifty India Defence index compared with 11.15 per cent drop in the Nifty during the same period. Multi-year defence spending cycle offers a strong earnings visibility, led by domestic procurement and rising exports, analysts said.

The foreign brokerage initiated 'Buy' on HAL with a target of Rs 6,350, suggesting 35 per cent potential upside. On Wednesday, the scrip was trading 0.15 per cent lower at Rs 4,688 apiece.

BDL has been rated 'Hold' with a target of Rs 1,370, hinting at 21 per cent potential upside. This stock was trading flat at Rs 1,135.90 apice on BSE.

Mazagon Dock Shipbuilders Ltd was quoting 0.56 per cent lower at Rs 2,223.50. This stock has been rated 'Reduce' by HSBC with a target of Rs 1,860, reflecting 17 per cent downside potential. This stock was down 0.63 per cent at Rs 2,222.

Astra Microwave has been rated 'Hold' with a target of Rs 1,800, suggesting 13 per cent upside. Data Patterns' target of Rs 4,860 hinted at 11 per cent potential upside. This stock was trading 2.43 per cent higher at Rs 1,632.60 on Wednesday.

HAL, meanwhile has been rated 'Buy' with a target of Rs 6,350, suggesting 35 per cent upside potential.