Motilal Oswal thinks several Indian defence companies could see big gains after the government approved huge spending plans worth about ₹79,000 crore.
Big spending boost for defence
The Defence Acquisition Council cleared projects that raise the fiscal‑year‑2026 approvals to around ₹3.3 trillion, almost double the usual annual defence budget. These projects cover missiles, aircraft, naval ships, surveillance gear and more.
Stocks Motilal Oswal is bullish on
- Bharat Electronics (BEL) – Target ₹500 (current ₹393) – ~27% upside
- Hindustan Aeronautics (HAL) – Target ₹5,800 (current ₹4,377) – ~33% upside
- Bharat Dynamics (BDL) – Target ₹2,000 (current ₹1,473) – ~36% upside
- Astra Microwave Products (AMPL) – Target ₹1,100 (current ₹979) – ~12% upside
What the targets mean for investors
The broker believes the approved projects will reduce risk for future orders, helping both public and private defence firms over the next two to four years. If the companies deliver, the price targets suggest notable returns.
Other note
Motilal Oswal stays neutral on Zen Technologies, giving it a modest 1% upside target.
Disclaimer
These views are the analyst’s own and not a guarantee of future performance. Do your own research before making any investment decisions.