Will BDL, HAL & other defence stocks deliver rocketing returns? Here’s why this brokerage remains bullish
India’s defence sector is gaining momentum on the back of rising defence spending, localisation, strong order pipelines and growing exports. Bajaj Broking remains bullish on Bharat Dynamics and Hindustan Aeronautics, citing improving execution, robust order books and long-term military modernisation as key growth drivers.
India’s defence sector is poised for significant growth, according to Bajaj Broking's latest research report. The defense budget has skyrocketed from Rs 2.53 trillion in FY14 to Rs 6.81 trillion in FY26, underscoring the government's commitment to military modernization and national security. This surge in capital expenditure, coupled with a strong domestic order pipeline and robust exports, has created a multi-year opportunity for various defense-related stocks.
Bajaj Broking highlights Bharat Dynamics and Hindustan Aeronautics (HAL) as key players in the sector, both of which have shown strong revenue growth and promising order backlogs. While Bajaj Broking remains cautious about execution challenges and geopolitical risks, the brokerage remains bullish on the long-term prospects of India’s defense sector, recommending a gradual accumulation of these stocks.
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