Archive · 15 Jan 2026
Nuvama Recommends Defence Stocks for Investment
Nuvama, a brokerage firm, has suggested investing in certain defence stocks like Bharat Electronics Ltd (BEL), Solar Industries India Ltd (SOIL), and Data Patterns (India) Ltd.
They prefer these companies because they can execute projects quickly and have good profit margins.
Nuvama believes the defence sector is moving from just getting orders to actually delivering them.
They think BEL is the best choice because it has a strong record of completing projects and maintaining steady profits.
SOIL and Data Patterns are also good for long-term growth.
The firm has set target prices for these stocks and others like HAL and BDL, which they think might face longer project timelines and lower profits.
Overall, they advise investing in companies that can deliver projects on time without financial stress.
Nuvama recommends BEL, SOIL, and Data Patterns as top defence stock picks.
BEL is preferred for its robust execution and steady margins.
SOIL and Data Patterns offer compelling multi-year growth potential.
HAL and BDL face longer execution cycles and potential earnings downgrades.
Defence backlogs are at 3–5 times sales, with FY26 budgeted capex at Rs 1.8 lakh crore.
- Who
- Nuvama, a domestic brokerage
- What
- Recommended defence stocks for investment
- When
- During a transition phase in the defence sector
- Where
- India
- Why
- Due to strong execution capabilities, higher localisation, and disciplined working capital management
- BEL Target Price
- Rs 520
- SOIL Target Price
- Rs 18,000
- BDL Target Price
- Rs 2,020
- HAL Target Price
- Rs 5,800
- Data Patterns Target Price
- Rs 3,570
- Zen Technologies Target Price
- Rs 1,400
- Defence Backlogs
- 3–5 times sales
- FY26 Budgeted Capex
- Rs 1.8 lakh crore
