Mumbai, 25 February 2026: The defence sector in India is currently a hot topic. Thanks to ‘Make in India’, government purchases and growing export opportunities, PSU stocks like BEL (Bharat Electronics Ltd), BDL (Bharat Dynamics Ltd) and HAL (Hindustan Aeronautics Ltd) as well as private companies are on investors’ radar. Choice Broking shared a positive note on this sector on 24 February 2026. They analysed 10 defence stocks and gave ‘Buy’, ‘Add’ and ‘Reduce’ ratings. The top 3 picks are BEL, BDL and Data Patterns.
Choice Broking’s rating and target prices on 9 defensive stocks (as of 24 February 2026)
1. Bharat Electronics Ltd (BEL) – Buy
Target price: ₹550
Reason: strong order book, leadership in LCA Tejas and EW programmes, 70-75% indigenisation and role as system integrator. 35x valuation on FY28 EPS.
2. Bharat Dynamics Ltd (BDL) – Buy
Target price: ₹1,965
Reason: Strong missile demand, order book of 8x FY25 revenue, pipeline of ₹20,000 crore. Steady execution expected in FY27-28.
3. Data Patterns (India) Ltd – Buy
Target price: ₹3,600
Reason: IP-led strategy, record order book of ₹1,867 crore, margin protection and long-cycle scale.
4. Apollo Micro Systems – Buy
5. Azad Engineering – Buy
6. Centum Electronics – Buy
7. Zen Technologies Ltd – Buy
8. Astra Microwave Products Ltd – Add
9. DCX Systems – Reduce
Top 3 picks (Choice Broking): BEL, BDL, and Data Patterns – these have the best long-term earning visibility, order book, and margin stability.
Today’s NSE and BSE updates (25 February 2026, between 10-11 AM)
Nifty India Defence Index: up 0.81% at 8,084.20 (Open: 8,051.75, High: 8,095.70). Positive sentiment in the sector continues.
Sensex: up 500-600 points, Nifty above 25,600.
Why defence company stocks are attractive?
- A 8-10% increase in defence CAPEX is expected in the government budget.
- Order book strong (BEL ₹75,000+ crore, HAL ₹1,00,000+ crore).
- Indigenisation and export growth (Africa, Middle East).
- Q3 Results: Stable margins in PSU companies, improvement in operating leverage in private companies.
Disclaimer:
This report is analytical. Consider the market risks. Conduct your own research or consult an advisor before making decisions. Target prices are based on FY28 EPS and may vary with market fluctuations.
