HAL, Bharat Dynamics, BEML, to BEL: India’s domestic defence sector is well positioned to deliver sustained growth in coming years, supported by policy support, increased private sector participation and rising export capabilities. Defence players like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), BEML Limited are poised to benefit from India’s defence ecosystem, according to Emkay Global research.
Top defence stock to buy
India’s defence production is likely to reach a record ₹1.8 trillion and exports surged to ₹380 billion in the financial year 2025-26. The target for the year 2026 is ₹3 trillion worth of production and ₹500 billion worth of exports.
Hindustan Aeronautics share price target
Emkay Global Financial Services gave a ‘Buy; rating to HAL with a target price of ₹5,950 per share. The brokerage indicates a 23% upside in its share price valuation. The company is likely to see improvement in operational performance with execution of the LCA Tejas MKIA order. The business should help in delivering earnings CAGR of 13% over FY26-29E.
“We initiate coverage on the stock on the back of strong long-term earnings visibility, coupled with a robust >20% return ratio profile, benign valuation, and the stock trading at 32x its 1HFY29E EPS. HAL is our top pick in the sector,” stated the brokerage in its report.
HAL share price was trading 0.73% higher at ₹4,828 per share on BSE with a market capitalisation of ₹3,22,887.91 crore at 2 pm on Wednesday.
Bharat Electronics share price target
Emkay gave a target price of ₹500 per share to the stock, indicating an upside of 26%. Bharat Electronics consistent execution track, strong focus on research and development to boost indigenisation, have strengthened prospects of the company.
Additionally, a pipeline of large-ticket programs provide confidence that it can continue delivering mid-teen earnings growth in coming years.
Bharat Electronics share price was up 0.16% at ₹397.95 per share on BSE at 2 pm.
Bharat Dynamics share price target
The brokerage gave an ‘Add’ rating to the stock with a target price of ₹1,350 per share on BSE. However, increasing competition and higher R&D expenditure are expected to put pressure on margins in the near-term, as per the report.
Bharat Dynamics stock was trading 0.63% lower at ₹1163.85 per share on BSE at 2 pm with an MCap of ₹42,662.38 crore.
BEML share price target
BEML offers a rare exposure to three structurally distinct growth vectors. Emkay gave a ‘Buy’ rating for a stock with a target price of ₹2,600 per share, indicating a 24% upside in its valuation.
The company has an order book of ₹217 billion and a near-term revenue visibility through to FY29. “A ₹217 bn order book anchors near-term revenue visibility through to FY29, while a pipeline of opportunities across MRVC AC EMUs, aluminium push-pull trainsets, and six live metro tenders provides long-term revenue visibility,” stated the brokerage in its report.
BEML share price was trading 0.52% higher at ₹2103.30 per share on BSE with an MCap of ₹17,518.18 crore at 2:11 pm.
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