HAL, BEL, BDL, PTC Ind, Zen, Azad, Astra Microwave: 4 defence stocks to buy from this list

While there was no ordering activity from Ministry of Defence (MoD) in August 2025, DAC approved Acceptance of Necessity (AoN) with 10 procurement proposal worth Rs 67,000 crore while Cabinet Committee on Security (CCS) cleared acquisition of 97 Tejas Mk1A and six Netra Mk2 aircraft from HAL for Rs 62,000 crore. 
ICICI Securities in its latest defence sector report said most of the companies under its coverage have robust potential order inflow: Astra Microwave (Rs 1,300 crore), Bharat Electronics (Rs 27,000 crore, excluding QRSAM); Hindustan Aeronautics Ltd or HAL (over Rs 1 lakh crore, which includes Su-30 upgrade, Tejas Mk-2 and RoH orders).

Besides it sees potential orders for Bharat Dynamics (BDL) to the tune of Rs 5,000 crore across its product categories, Zen Technologies (Rs 800 crore in H1FY26), Mishra Dhatu Nigam Ltd or MIDHANI (Rs 1,200 crore).
Among PSU defence stocks, ICICI Securities has 'Buy' rating on HAL with a target price of Rs 5,800. It likes Astra Microwave (targte price: Rs 1,190), Azad Engineering (targte price: Rs 1,882) and Solar Industries (target price: Rs 17,200) among private players.

Overall, ICICI Securities has 'Buy' rating on six defence stocks, 'Add' rating on two (BDL and BEL), 'Hold' rating on Zen Technologies and 'Reduce' rating on Dynamatic Technologies.

Among August developments, Astra Microwave received an order worth Rs 135 crore for the upgrade of ground-based radar. PTC Industries received an order worth Rs 110 crore from BrahMos. Garden Reach (GRSE) delivered and dispatched two frigates, under P17A, to Indian Navy. HAL has received certification for third LCA production line. Mazagon Dock Shipbuilders (MDSL) received clearance for construction of new floating dry dock.

Also, Astra Microwave and BEL have been selected as development partners for Virupaksa radar.

"We prefer HAL (TP: Rs  5,800; BUY) among PSUs and Astra Microwave, Azad Engineering and Solar Industries among private players in defence," ICICI Securities said.