India’s defence sector is heating up as the government pushes for faster deals and more exports. Antique Stock Broking just named its top picks, including Hindustan Aeronautics, Bharat Electronics, Mazagon Dock Shipbuilders, Zen Technologies, and PTC Industries, with fresh target prices that show strong growth ahead.
This comes right after a key conference where top officials talked about making India a global defence leader by 2047. With big orders on the way and easing supply issues, these stocks could see major gains in 2025 and beyond.
Why Defence Stocks Are Booming Now
India’s armed forces need new gear fast due to old equipment and tensions with neighbors. The government plans to spend big on modern tools, aiming for self-reliance in defence production.
Experts say orders worth over two lakh crore rupees could flow in by 2030. This includes planes, ships, and tech for the army, navy, and air force. Recent events like border clashes have sped up these plans, making defence a hot area for investors.
The push for exports is also key. Indian firms are selling to countries in Africa and Southeast Asia, boosting company earnings. Plus, new rules approved in September 2025 make buying and testing gear quicker for private players.
Antique’s Top Picks and Their Strengths
Antique Stock Broking shared these choices at their recent conference. They see big potential in firms tied to air, sea, and electronic warfare.
Hindustan Aeronautics stands out as the main player in aircraft. Bharat Electronics leads in electronics like missile systems. Mazagon Dock builds ships, while Zen Technologies focuses on training tech, and PTC Industries makes key parts.
These companies have strong order books. For example, total pending work across the sector tops several lakh crores, ensuring steady income for years.
Here is a quick look at their current market standings:
| Company | Current Price (Approx Rs) | Key Strength |
|---|---|---|
| Hindustan Aeronautics | 4,500 | Aircraft production monopoly |
| Bharat Electronics | 300 | Electronics and missile tech |
| Mazagon Dock Shipbuilders | 4,000 | Warship building |
| Zen Technologies | 1,500 | Simulation and training |
| PTC Industries | 12,000 | Precision components |
These figures are based on recent trading data as of mid-October 2025.
Target Prices and Growth Drivers
Antique gave a buy rating to Hindustan Aeronautics with a target of 6,360 rupees. They value it at 40 times earnings for the first half of fiscal 2027. This comes from expected orders for over 300 aircraft, like the Tejas models, over the next decade.
Bharat Electronics could hit targets above 400 rupees, driven by orders over 57,000 crore rupees in fiscal 2026. Their work on quick reaction missiles and electronic warfare fits the army’s needs.
For Mazagon Dock, targets sit around 5,000 rupees, thanks to shipbuilding deals. Zen Technologies might reach 2,000 rupees with its simulation tech, and PTC Industries could climb to 15,000 rupees on parts supply.
Growth comes from easing engine shortages and new tech transfers. A deal with a US firm for engines gives India better local production, cutting import costs.
Challenges and Risks Ahead
Not everything is smooth. Supply chain delays from global events have hit production in the past. For instance, engine shortages slowed aircraft delivery last year.
High stock prices mean some firms trade at 40 to 80 times earnings, which could drop if orders slow. Geopolitical shifts, like peace talks, might cut spending too.
Still, analysts stay positive. They point to steady government support and rising exports as buffers against risks.
Investors should watch quarterly results. Soft margins in the second quarter of 2025 for some firms, like Hindustan Aeronautics and Bharat Electronics, came from higher costs, but order inflows should fix that soon.
What This Means for Investors
These targets suggest upside of 20 to 50 percent from current levels. With India’s defence budget growing, these stocks fit long-term portfolios.
Compare this to past years. In 2024, defence stocks jumped over 30 percent on similar news. Now, with new policies, 2025 could be even better.
Key factors to track:
- New contracts from the Ministry of Defence.
- Export deals to new markets.
- Earnings reports in the coming months.
If you are thinking about investing, check your risk level. These stocks can swing with global events.
Future Outlook for India’s Defence Sector
By 2047, India wants to match top global makers. Revised rules coming in December 2025 will help.
Firms like these are building champions in key areas. For example, joint ventures for engines and helicopters show tech progress.
Overall, the sector looks set for growth. Rising order books, like Hindustan Aeronautics at 1.84 lakh crore rupees, promise strong returns.
What do you think about these defence stocks? Share your views in the comments and pass this article to fellow investors for more insights.
