Defence stocks to buy: BDL, HAL, among defence stock picks after DAC approves ₹54,000 crore acquisition proposals

Defence stocks including Bharat Dynamics share price and BEML shares rallied up to 5% after the government approved the capital acquisition of a slew of military hardware worth more than ₹54,000 crore. Bharat Dynamics shares jumped as much as 5.63% to ₹1,317.00 apiece, while BEML stock price rallied 4.83% to ₹2,877.70.

The Defence Acquisition Council (DAC) on Thursday accorded Acceptance of Necessity (AoNs) to eight capital acquisition proposals amounting to over ₹54,000 crore, including airborne early-warning and control-aircraft systems, torpedoes and engines for T-90 tanks.

These include procurement of AoN for 1350 HP engine to upgrade the present 1000 HP engine for T-30 tanks to enhance battlefield mobility, especially in high-altitude areas; AoN for Varunastra torpedoes, indigenously developed by the Naval Science & Technological Laboratory for the Indian Navy; AoN for Airborne Early Warning & Control (AEW&C) aircraft systems to alter spectrum of warfare and thereby increasing the combat potential of every other weapon system.

DAC also approved the guidelines for reducing the timelines at various stages of the capital acquisition process to make it “faster, more effective and efficient”, according to the defence ministry.

For YTDFY25, DAC has accorded AoN to proposals worth approximately ₹2.2 lakh crore under various categories of capital procurement, which promotes domestic manufacturing as per DAP-2020.

“The total share of domestic procurement has seen a phenomenal improvement from 54% in FY19 to 75% in recent years and is expected to improve further. This provides a tremendous opportunity for Indian defence manufacturers like PTC Industries, Mazagon Dock Shipbuilders, Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, and other defence players,” said Antique Stock Broking.

Here are the defence stock picks by Antique Stock Broking:

Defence stocks to buy

PTC Industries | Buy | Target Price of ₹19,639

Bharat Electronics | Buy | Target Price: ₹376

Bharat Dynamics | Buy | Target Price: ₹1,351

Hindustan Aeronautics | Buy | Target Price: ₹4,887

Mazagon Dock Shipbuilders | Buy | Target Price: ₹2,757

Garden Reach Shipbuilders & Engineers | Buy | Target Price: ₹1,783

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.