HAL, Bharat Electronics, Data Patterns: Top stock picks amid rise in defence capex 

Shares of defence sector firms such as Hindustan Aeronautics Ltd (HAL), Bharat Electronics (BEL) and Data Patterns are in focus today after Jefferies termed these stocks as its top industrial picks. Jefferies assigned a price target of Rs 6,800 to the HAL stock, an upside of 42% from the current level. HAL has visibility of 16% EPS CAGR over FY26-30E on order book execution.

The defence stock has already gained 36% from 52 week low of Rs 3479.20 reached on March 30, 2026. It has risen 20% in six months and climbed 140% in three years.

Bharat Electronics (BEL) shares, according to Jefferies are set to hit the Rs 490 mark in a year, amounting to a 19% upside. Bharat Electronics shares have gained 194% in three years and risen 538% in five years. The stock is trading below the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day simple moving averages.

Data Patterns stock has received a price target of Rs 5545 from Jefferies. The brokerage fixed an upside of 23% for the stock from the previous close. Data Patterns shares have gained 71% in 2026 and risen 80.49% in five years. It has gained 110% from the 52 week low of Rs 2131 reached on January 27, 2026.

Jefferies said defence capex rose 35% in July 2026. Defence capex is up 41% YoY YTD on a strong base of 73% YoY growth in FY26 till July 2025. This is tracking well ahead of 18% YoY FY27 BE growth. 26% of FY27 budgeted estimates has been achieved in 2026.