Archive · 24 Sep 2026
Emkay Favors HAL as Defence Stocks Target 26% Upside
Emkay Global studied four Indian defence companies to see which might grow.
It chose Hindustan Aeronautics, or HAL, as its favourite.
Emkay gave HAL a Buy rating and a target price of ₹5,950.
Bharat Electronics, or BEL, received a ₹500 target and could have the highest estimated upside at 26%.
BEML received a Buy rating because its large order book could support sales through FY29.
Bharat Dynamics received a more cautious Add rating with a ₹1,350 target.
The brokerage expects India’s defence production and exports to keep growing.
However, these are estimates, not guarantees, and competition and costs could affect results.
Emkay Global named HAL, BEL, BEML and Bharat Dynamics as preferred Indian defence stocks.
HAL is Emkay’s top pick with a Buy rating, ₹5,950 target and projected 23% upside.
BEL received a Buy rating and ₹500 target, implying potential upside of up to 26%.
BEML received a Buy rating and ₹2,600 target, supported by a ₹217 billion order book through FY29.
Bharat Dynamics received an Add rating and ₹1,350 target, but competition and higher R&D costs may pressure margins.
- Who
- Emkay Global Financial Services assessed Hindustan Aeronautics, Bharat Electronics, BEML and Bharat Dynamics.
- What
- The brokerage issued ratings, target prices and growth views for four Indian defence companies.
- When
- The projections cover FY26 through FY29; the articles also cite a longer-term production and export target for 2029.
- Where
- The companies operate in India and their cited share prices were reported on the Bombay Stock Exchange.
- Why
- Emkay expects policy support, private-sector participation, rising exports, defence orders and increased electronics content to support sector growth.
Growth Case
Risk Case
Indian defence expansion
Growth Case
Emkay expects sustained sector growth from policy support, greater private participation, rising export capabilities and increasing domestic defence production.
Risk Case
The production, export and share-price figures are forecasts from a brokerage and may not be achieved.
Stock selection
Growth Case
HAL is Emkay’s top pick, while BEL and BEML are supported by earnings visibility, order pipelines and business opportunities.
Risk Case
Actual performance may be affected by execution, valuation, costs and changing order conditions.
Bharat Dynamics outlook
Growth Case
Bharat Dynamics could benefit from the expanding defence ecosystem and received an Add rating with a ₹1,350 target.
Risk Case
Increasing competition, higher research and development spending, premium valuation and a mixed execution record could pressure margins and limit gains.
- Defence production cited
- ₹1.8 trillion in FY26
- Defence exports cited
- ₹380 billion, also described as ₹38,000 crore, in FY26
- Long-term sector target
- ₹3 trillion production and ₹50,000 crore exports by 2029; one article instead labels the target year as 2026
- HAL view
- Buy rating; ₹5,950 target; approximately 23% potential upside
- BEL view
- Buy rating; ₹500 target; approximately 26% potential upside
- BEML view
- Buy rating; ₹2,600 target; approximately 24% potential upside
- Bharat Dynamics view
- Add rating; ₹1,350 target; approximately 13% potential upside
- BEML order book
- ₹217 billion, with near-term revenue visibility through FY29
