Zen Technologies, Apollo Micro Systems, Paras Defence, Astra Microwave Products Ltd, Bharat Electronics Ltd and Data Patterns (India) Ltd led the defence pack rally in Monday’s trade, even as the broader stock market remained spooked amid concerns over a likely Iranian retaliation to US strikes, which could include choking of Straits of Hormuz. The stocks gained amid intensifying Iran-Israel war and as NATO members agreed to a increase in their defence spending target to 5 per cent of gross domestic product.
Defence companies in India are expected to benefit as the EU defence original equipment manufacturers (OEM) turn to public and private defence firms to procure components and subsystems. Potential beneficiaries include Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, Data Patterns, Zen Technologies, Paras Defence, Solar Industries, Azad Engineering and Dynamatic Technologies, Elara Securities said in a March note.
Zen Technologies climbed 4.99 per cent to Rs 1,995.25. This stock was also up as the company board approved the acquisition of a majority stake in TISA Aerospace Private Limited, an emerging defence technology company specialising in indigenously developed loitering munitions and unmanned aerial vehicles (UAVs).
Paras Defence and Space Technologies Ltd advanced 4.41 per cent to Rs 1,723. Bharat Electronics Ltd rose 2.44 per cent to Rs 418.00 and was among the only four Sensex gainers for the day.
Anlaysts said the government spending on ‘Make in India’ defence products are on a rise.
“India’s defence landscape is poised for transformative growth, underpinned by a record Rs 6.81 lakh crore allocation in 2025‑26—13 per cent of total central expenditure—and a decade‑long compound annual spending increase of 9 per cent. A decisive 13 per cent boost in capital outlay further marks the government’s commitment to cutting‑edge modernization, funding advanced arms, naval vessels, aircraft, R&D, and critical border infrastructure,” InCred Equities said today.
“This dual thrust of robust budgeting and elevated capital investment not only secures operational readiness but also catalyzes indigenous innovation and strategic self‑reliance, charting a clear trajectory towards technological transformation and sustained sectoral growth,” the brokerage added.
Data Patterns (India) Ltd added 1.94 per cent to Rs 3,020.10. Hindustan Aeronautics Ltd rose 1.02 per cent to Rs 5,022.55. Apollo Micro Systems climbed 3.63 per cent to hit a high of Rs 1,146.75.
Mazagon Dock Shipbuilders Ltd gained 1.94 per cent to Rs 3,321.70, Cochin Shipyard 1.35 per cent to Rs 2,210.55, and Garden Reach Shipbuilders & Engineers Ltd 2.19 per cent to Rs 3,359. Bharat Forge Ltd added 1.03 per cent to Rs 1290.60 and BEML was up 0.64 per cent at Rs 4,656.65.
“I would choose only two stocks from the defence sector—Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL). These are must-haves in every investor’s portfolio,” Murthy said during a conversation with Business Today on Monday.
“I’m a buyer in HAL and BEL. HAL should definitely be part of one’s portfolio, as I expect it to reach Rs 8,000–10,000 within the next year. Similarly, BEL has the potential to climb to Rs 500–600 in the same timeframe,” he said.
He also commented on Mazagon Dock Shipbuilders Ltd and Garden Reach Shipbuilders & Engineers Ltd, noting, “These stocks are currently richly valued, pricing in 2–3 years of future earnings, which raises concerns. While both are fundamentally strong companies, their high valuations make them less attractive at the moment. Unless you’re investing with a five-year horizon, I would avoid these two shipbuilders for now,” the market expert added.
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