HAL, BEL, BDL, Paras Defence On Analysts' Radar As Defence Stocks Rally For Second Day

Defence stocks are gaining ground for the second consecutive session. Hindustan Aeronautics (HAL), Bharat Electronics (BEL) and Bharat Dynamics (BDL) witnessed 3% gains, while Paras Defence clocked in 8% gains on Tuesday. 

India's defense sector is experiencing substantial expansion due to increasing geopolitical instability and significant governmental investment in military modernisation. 

A recent $7.4 billion agreement with France for 26 Rafale fighter aircraft underscores India's dedication to strengthening its defense capabilities and decreasing dependence on foreign suppliers.

SEBI-registered analysts have shared potential beneficiaries in this defence sector on Stocktwits.

According to Adarsh Nimborkar, major listed entities in the defense sector, including HAL, BEL, BDL, Cochin Shipyard, and L&T, are well-positioned for expansion. Additionally, Nimborkar suggests that conglomerates like Tata stand to gain significantly, albeit indirectly.

On HAL, Adarsh set the target at ₹4,700 with support at ₹4,360

For BEL, he sees a target of ₹335 with support at ₹293 

And for BDL, he pegs the price target at ₹1,660 with nearest support at ₹1,420

From an investment perspective, Manish Kushwaha maintains a bullish stance on HAL, recommending a buy range between ₹4,540 and ₹4,550. He sets a target price of ₹5,200, while suggesting a stop loss at ₹4,100 to manage downside risk. 

This positive outlook is supported by the company’s strong fundamentals, expanding global presence, and pivotal role in India’s defence manufacturing ecosystem.

Meanwhile, analyst Krishna Pathak observed that Paras Defence and Space Technologies had been in a persistent downtrend, characterized by a series of lower highs and lower lows. However, the stock recently reversed direction after finding strong support at ₹810. 

Krishna noted that the Relative Strength Index (RSI) is hovering near 70, positioned between the mid- and upper bands, indicating robust buying momentum and strong buyer interest.

HAL stock and BEL shares gained 8% year-to-date (YTD), while BDL shares saw 37% gains and Paras Defence shares gained 24% YTD. 

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