Archive · 17 Dec 2025
Anand Rathi Picks Defence Stocks with High Upside
Anand Rathi Research has recommended two defence sector stocks, Hindustan Aeronautics (HAL) and Solar Industries, for investment.
They believe HAL's stock could go up by 37.66% because they expect to deliver 5 Tejas Mk-1A jets in the financial year 2026.
Solar Industries could see a 46.5% increase because they signed a deal to develop a new type of drone called a Loitering Munition UAV.
This drone can be used for attacking, deep strikes, and intelligence, surveillance, and reconnaissance (ISR) roles.
The brokerage has set target prices for both stocks, with HAL at Rs 5,950 and Solar Industries at Rs 17,859.
However, there are some delays in delivering another type of aircraft, the HTT-40, due to engine procurement issues.
Anand Rathi Research recommends buying Hindustan Aeronautics (HAL) and Solar Industries stocks.
HAL's stock is expected to rise by 37.66% due to deliveries of 5 Tejas Mk-1A jets in FY26.
Solar Industries' stock could increase by 46.5% over the next 12 months due to a new agreement to develop a 150 kg Loitering Munition UAV.
HAL's deliveries of HTT-40 Basic Trainer Aircraft are delayed due to engine procurement issues.
The new LM-UAV will be capable of attack, deep-strike, and ISR roles, expanding Solar Industries' product portfolio.
- Who
- Anand Rathi Research
- What
- Identified defence sector stocks with high upside potential
- When
- Recent fortnightly defence intelligence report
- Where
- India
- Why
- Based on expected deliveries and new agreements in the defence sector
- HAL Target Price
- Rs 5,950
- HAL Upside Potential
- 37.66%
- Solar Industries Target Price
- Rs 17,859
- Solar Industries Upside Potential
- 46.5%
- Tejas Mk-1A Deliveries Expected
- 5 in FY26
- LM-UAV Weight Class
- 150 kg
- LM-UAV Capabilities
- Attack, deep-strike, ISR roles
