Motilal Oswal has reiterated a 'Buy' rating on BEL stock with an unchanged target price of ₹510, based on the 45x two-year forward earnings.
At 12:24 PM on Wednesday, the Nifty India Defence index was the top gainer among thematic indices up 2.8 per cent as against a 0.3 per cent rise in the Nifty 50.
At 11:29 AM on Friday, the BSE India Defence index was the top gainer among thematic indices up 1 per cent as compared to 0.11 per cent rise in the BSE Sensex.
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The Nifty India Defence index hit an intra-day high of 9,093.20, up 1.3 per cent on the NSE in intra-day deals, and was inching towards its 52-week high of 9,159.55 touched on June 24, 2025.
Among defence public-sector undertakings (DPSUs), DAM Capital said that it prefers Hindustan Aeronautics and Bharat Electronics.
Thus far in the month of April, Nifty India Defence index has outperformed the market by surging 8 per cent, as against 3 per cent gain in Nifty 50.
Among the defence stocks, Paras Defence, Bharat Dynamics, Apollo Micro Systems, BEML, Midhani, Bharat Electronics and Astra Microwave gained between 8% and 10% in Wednesday's intra-day trade.
The Indian equity market was trading sharply higher, driven by hopes of de-escalation in the war between US-Israel and Iran
A key growth driver for the defence sector remains the robust pipeline of Acceptance of Necessity (AoN) approvals, which typically convert into orders over the next two to three years
Motilal Oswal Wealth Management Research Desk has recommended buying the following stocks: ICICI Prudential AMC, Apollo Hospitals, Bharat Dynamics, Siemens Energy, Jain Resource Recycling, and TBO Tek
Cochin Shipyard, GRSE, BDL, BEML, Paras Defence, Mazagon Dock Shipbuilders and Unimech Aerospace have plunged between 40% and 51% from their respective 52-week highs.
Shares of midcap and smallcap companies came under pressure on Monday as Rising tensions between the US-Israel and Iran have raised concerns about potential disruptions to global oil supply
Tensions in West Asia is expected to support sustained demand for defence equipment such as missiles, air-defence systems, surveillance technologies, and electronic warfare solutions, believes MOFSL
Motilal Oswal Financial Services has a 'Buy' rating on Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, and Astra Microwave Products
The recent up move in Nifty Defence reflects renewed buying after a long phase of consolidation, says Om Mehra, technical analyst at SAMCO Securities. The analyst is bullish on BEL, BDL and GRSE.
The brokerage in its note highlighted that the global defence sector has entered a structurally elevated growth phase, driven by persistent geopolitical conflicts
In the past one month, the Nifty India Defence index has rallied 11 per cent, as against 4 per cent fall in the Nifty 50.
At 09:22 AM on Monday, the Nifty Defence index rose 1.1 per cent, as compared to 1 per cent decline in the Nifty 50 amid rising US-Iran tensions.