3 Defence PSU Stocks to Buy: Analysts pick HAL, BEL & Bharat Dynamics for up to 57% potential upside, details inside
The Indian defence sector has been on an upward trend, and defence public sector undertakings (PSUs) are some of the buzzwords in the market. With the government’s initiatives to increase indigenization and self-reliance in the defence sector, defence PSUs have been benefiting from this trend. In this article, we will discuss three defence PSUs that analysts recommend buying, which have promising growth prospects and could deliver significant returns to investors. HAL, BEL and Bharat Dynamics are the stocks that we will be covering in this article.
HAL share price target
The first stock is Hindustan Aeronautics Ltd (HAL). The brokerage firm Elara Capital has given a ‘buy’ rating for HAL with a target price of Rs 5,160. This is a significant upside of 57% from its current price of Rs 3,283.9. HAL is a leading defence aerospace company in India, and with its strong order book and emerging opportunities, it is well-poised to deliver strong growth.
BEL share price target
The next stock is Bharat Electronics Ltd (BEL). Elara Capital has also recommended buying BEL with a target price of Rs 370. This is an upside of 44% from its current price of Rs 256.4. BEL is a leading defence electronics company in India, and with its strong track record and growing order book, it is a stock that has good potential.
Bharat Dynamics share price target
The third stock is Bharat Dynamics. Elara Capital has also given a ‘buy’ rating for Bharat Dynamics with a target price of Rs 1,360. This is an upside of 33% from its current price of Rs 1,023.9. Bharat Dynamics is a leading defence engineering company in India, and with its strong track record and growing order book, it has good potential for growth.
What does brokerage say?
According to Elara Capital, the target for the defence sector is to achieve a domestic defence production target of Rs 1.6 lakh crore and defence exports of Rs 30,000 crore by FY26. This is a significant milestone for the sector, and with the government’s initiatives to increase indigenization and self-reliance, the sector is expected to grow significantly. The brokerage believes that HAL, BEL, and Bharat Dynamics are well-positioned to benefit from this growth.
India plans to buy 5th generation fighter jet
India is in the process of buying 5th generation fighter jets, such as the Lockheed Martin F-35 and the Sukhoi Su-57. This is a significant development for the defence sector, and with India’s growing military ambitions, the sector is expected to grow significantly. This development is likely to benefit HOL, BEL, and Bharat Dynamics, which are all involved in the defence manufacturing sector.
In conclusion, HAL, BEL, and Bharat Dynamics are three defence PSUs that analysts recommend buying, with promising growth prospects and potential returns of up to 57%. With the government’s initiatives to increase indigenization and self-reliance in the defence sector, these stocks are well-positioned to benefit from this growth. 3 Defence PSU Stocks to Buy: Analysts pick HAL, BEL & Bharat Dynamics for up to 57% potential upside, details inside
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