Written by Rising geopolitical tensions between India and Pakistan have already triggered a sharp rally in Indian defence stocks, with several companies seeing double-digit gains in recent trading sessions. As the situation escalates, these stocks are expected to remain in focus due to anticipated increases in government defence spending and strong order pipelines.
Top 5 Defence Shares to Watch
Hindustan Aeronautics Limited (HAL)
HAL is consistently highlighted as a top pick by analysts due to its robust order book (₹180 billion, expected to grow further) and strong revenue growth potential (30–40% possible in coming years).
The stock has recently gained over 4% amid rising tensions.
Mazagon Dock Shipbuilders Ltd (MDL)
MDL is a key naval shipbuilder, and its shares have surged nearly 9% in recent sessions.
The company is expected to benefit from increased naval procurement and modernization.
Bharat Electronics Limited (BEL)
BEL is a leading electronics and systems provider for India’s defence forces, offering stable growth and strong fundamentals.
The stock has climbed over 4% recently, with analysts expecting further upside.
Paras Defence and Space Technologies
Paras Defence has shown the highest short-term gains, jumping 20% in a single day, making it a momentum favorite among investors.
The company is involved in advanced defence and space technologies, which are in high demand during conflict periods.
Bharat Dynamics Limited (BDL)
BDL specializes in missile and weapon systems, and its shares have gained over 5% recently.
With a swelling order pipeline and government focus on indigenization, BDL is well-positioned for further growth.
Honourable Mentions
Data Patterns (India) Ltd: Noted for its 14%+ surge and strong order book in electronics and avionics.
Garden Reach Shipbuilders & Engineers (GRSE): Saw a 12%+ rally, benefiting from naval modernization.
Summary Table
Company Name Recent Surge Key Strengths
Hindustan Aeronautics Limited (HAL) 4–5% Large order book, strong execution
Mazagon Dock Shipbuilders (MDL) ~9% Naval shipbuilding, robust orders
Bharat Electronics Limited (BEL) 4%+ Defence electronics, stable growth
Paras Defence & Space Tech 20% Advanced tech, high momentum
Bharat Dynamics Limited (BDL) 5%+ Missiles, strong government orders
Key Takeaways
Defence stocks are surging on expectations of higher government spending and urgent procurement in light of escalating conflict.
HAL, MDL, BEL, Paras Defence, and BDL are the top five shares to watch, given their strong fundamentals, recent performance, and strategic importance to India’s defence sector.
Investors should monitor these stocks closely as further developments in the India-Pakistan situation could drive additional gains and volatility.