Updated Mar 10, 2026 14:28 IST
Defense Stocks: The tension in the Middle East has once again brought the stocks of India’s defense sector on the radar of investors…
highlights
- The increasing tension in the Middle East has once again brought defense stocks into the limelight.
- Amidst this tension, the brokerage has placed bets on BEH, HAL, BDL and Astra Microwave.
- Motilal Oswal has expressed the possibility of upside of 14% to 38% in these shares.
Motilal Oswal believes that the Indian government is continuously emphasizing on increasing self-reliance in defense manufacturing, which is creating a big opportunity for domestic companies. In such a situation, good upside can still be seen in some selected defense stocks.
How is the outlook of the defense sector?
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According to the brokerage, demand for the defense sector is likely to remain strong due to increasing military expenditure and changing geopolitical equations around the world. India is also rapidly upgrading its military capabilities. Due to the Government’s Make in India policy, increasing defense budget and export orders, the order book of domestic companies is continuously strengthening. This is the reason why investors remain interested in this sector.
Motilal Oswal’s opinion on Bharat Electronics
Motilal Oswal maintains a positive stance on Bharat Electronics (BEL). According to the brokerage, the company is continuously receiving new orders and the order flow is expected to remain strong in the coming times also. The current price of the share is around Rs 458, while the brokerage has given a target price of Rs 520 for it. According to this, a potential upside of up to 14% can be seen in it. Today in the stock market this share is trading at the level of Rs 462 with a rise of about 1%.
Motilal Oswal’s opinion on HAL
The highest expectation of brokerage in the defense sector is linked to Hindustan Aeronautics Ltd (HAL). HAL is a major manufacturer of fighter aircraft, helicopters and engines for the Indian Air Force. The brokerage believes that large defense contracts and long order book will support the company’s growth in the times to come.
The current share price of HAL is around Rs 3,989, while the brokerage has given a target of Rs 5,500 for it. That means there seems to be a potential upside of up to 38%. This defense stock is also trading today at the level of Rs 4003 with a rise of about 0.33 percent.
Motilal Oswal’s opinion on Bharat Dynamics
Brokerage is also quite positive on missile and defense system manufacturing company Bharat Dynamics (BDL). The company is likely to get big missile projects and export orders in the coming time. The current share price of BDL is around Rs 1,336 and the brokerage has set a target price of Rs 1,800 for it. According to this, about 35% upside potential is being considered in the stock. A rise of about 3 percent was seen in BDL shares today.
Motilal Oswal’s opinion on Astra Microwave
Radar and electronic systems maker Astra Microwave has also been included in the list of favorite defense stocks by the brokerage. The current price of the company is around Rs 1,008 and the brokerage has given a target of Rs 1,150 for it. This means that there can be a potential upside of up to 14% in this stock. Astra Microwave also gained 3% more in the stock market today.
Motilal Oswal’s opinion on Zen Technologies
However, the brokerage has currently adopted a cautious stance on Zen Technologies. The current share price of the company is around Rs 1,443, while the brokerage has kept its target at Rs 1,400. This means that there is not much upside visible from the current levels, hence the brokerage has given a neutral rating on this stock.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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