The analyst has “buy” ratings for the four stocks except Zen Tech, for which it has a “neutral” recommendation.
Motilal Oswal’s note comes after the Defence Acquisition Council’s meeting on Monday, where it approved proposals worth ₹79,000 crore in the winter session, taking the approvals to ₹33 lakh crore, nearly double the capital outlay on defence of ₹1.8 lakh crore.
The approvals span across a wide spectrum of capabilities, including munitions, missiles, air defence systems, surveillance and communication equipment, training systems and naval support platforms, reflecting a balanced modernisation push across all three services, Motilal Oswal said.
While the acceptance of necessity (AoN) approvals do not immediately translate into order inflows, the breadth and scale of the approvals materially de-risk order inflows for key defence PSUs and select private players over the next two to four years, it added.
Key Beneficiaries
Motilal Oswal said the Defence Acquisition Council’s approval of projects worth ₹79,000 crore is likely to benefit both, leading defence public sector undertakings (PSUs) and select private players.
Here’s a look at the projections made by the brokerage:
| Stock | Rating | Price Target | Upside |
| BEL | Buy | ₹500 | 27% |
| HAL | Buy | ₹5,800 | 32.6% |
| BDL | Buy | ₹1,478 | 35.3% |
| Astra Micro | Buy | ₹1,100 | 12.2% |
| Zen Tech | Neutral | ₹1,400 | 0.4% |
Motilal Oswal said BEL is well-positioned to capture orders for radar systems, drone detection, HF SDR communications equipment, GBMES, and electronics portion of other systems.
HAL could see orders tied to HALE RPAS, Astra Mk-II missile integration, and full missile simulator production/support for platforms like Tejas.
Bharat Dynamics is positioned to gain from guided rocket ammunition, missile system production and other munitions and missiles that fall under its manufacturing scope, while procurement of BP tugs and allied marine support vessels opens opportunities for shipyards such as Mazagon Dock Shipbuilders, Cochin Shipyard, Garden Reach Shipbuildersit said.
Private players, including Astra Microwave, Zen Tech, L&T, Tata Advanced Systemscould see increased participation for components and in some cases, fully-integrated products such as full mission simulators and SPICE-1,000, it added.
The five stocks ended the previous session mixed, with BEL declining 1.2% while Zen Tech ending with gains of 1.4%.
Also Read: Shriram Finance shares in focus as CARE upgrades debt rating to AAA after MUFG deal
