GRSE, Data Patterns On Analyst Radar As Defense Stocks Rally To New Highs

Defense stocks were once again in the spotlight with the Nifty India Defence Index surging 4.1% in afternoon trade. All 18 stocks on the index climbed higher, with only Cyient DLM trading below 1%.

Several companies saw sharp intra-day trade gains. MTAR Technologies was the top gainer, rising 11.55%. BEML (+8.05%), Garden Reach Shipbuilders & Engineers (+8%), Astra Microwave Products (+6.3%), and Bharat Dynamics (+5.8%) rounded off the top five gainers on the index.

Defense bigwigs Hindustan Aeronautics (HAL) and Bharat Electronics (BEL) were up over 3%, while Paras Defence and Space Technologies and Apollo Micro Systems climbed 5% and 7.1%, respectively.

Defense stocks have been on fire this year, with the Nifty India Defence Index gaining over 23% year-to-date.

Last month, the Ministry of Defence said that the annual defense production reached a record high of ₹1,50,590 crore in FY 2024-25, marking an 18% jump from the previous year’s ₹1.27 lakh crore and a 90% surge from FY 2019-20’s ₹79,071 crore. Exports also increased to a record ₹23,622 crore in FY 2024-25, up 12.04% from ₹21,083 crore in the previous fiscal.

Latest Developments

Apollo Micro Systems’ shares rose after Apollo Strategic Technologies signed an MoU with US-based Dynamic Engineering and Design. The deal covers technology transfer, co-development, and potential licensed production of rocket motors for BM-21 Grad ER and non-ER rockets.

Paras Defence received a ₹26.6 crore order from Opto Electronics Factory, a unit of the Defence Ministry.

MTAR was up for a third straight session, gaining 23% during the period. Earlier this week, the company bagged an order worth Rs 386 crore from Bloom Energy Corporation.

On Thursday, HAL said that it received a third GE 404 engine from General Electric (GE) Aerospace for Light Combat Aircraft (LCA) Mk1A.

On Thursday, Mazagon Dock Shipbuilders commenced negotiations with the Indian Navy for the Submarine Project P75 (I).

Bullish Bets On Defense Stocks

SEBI-registered analysts have shared some bullish calls on select defense names on Stocktwits. Both Data Patterns and GRSE were among the top trending stocks on the platform at the time of writing. 

GRSE’s stock faces resistance at ₹2,560–2,565, and a close above this level could trigger a rally toward ₹2,700–2,800. Support lies at the ₹2,320–2,330 zone, said SEBI-registered analyst Financial Sarthis.

Meanwhile, Wealth Guru recommends buying Data Patterns at current levels of ₹2,719.10 with targets of ₹2,755, ₹2,800, and ₹3,000. The analyst also recommended a stop loss at ₹2,670.

The stock is on the verge of a breakout from a rectangle amid strong bullish momentum in the defense sector, the analyst added.

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