Following the recent India-Pakistan conflict, investor interest in India’s defense sector has surged, driven by heightened geopolitical tensions and a renewed focus on self-reliance in defense manufacturing. Several defense stocks have shown significant performance and are poised for potential growth. Here are the top 10 defense stock
Hindustan Aeronautics Ltd (HAL)
- Overview: HAL is India’s flagship aerospace and defense manufacturer. It designs, develops and produces military aircraft, helicopters, engines and avionics, serving the Air Force, Navy and other forces.
- Defense Operations: HAL builds fighter jets (Tejas LCA), transport/helicopter platforms (e.g. Sukhoi/Choppers), engines and avionics. Its order book is enormous (~₹94,100 cr as of FY2024) underpinning programs like the Tejas Mk1A, AMCA, and indigenously developed Light Combat Helicopter (LCH)
- Recent News/Contracts: In March 2025 the MoD signed contracts with HAL for 156 indigenously‑built LCH “Prachand” helicopters (66 for IAF, 90 for Army) – a major boost to India’s defense self-reliance. HAL also reported strong earnings (e.g. record profits in FY25) on the back of high-volume deliveries.
- Stock Performance: HAL stock jumped sharply after the May 2025 India-Pakistan clashes. For example, HAL shares rallied about +10% since the May 7 “Operation Sindoor” strikes. On May 7 itself, HAL spiked ~2% intraday. The broader defense rally has driven HAL toward its 52-week highs.
- Analyst View: HAL’s gigantic order pipeline has analysts bullish. Nuvama Research notes HAL’s order book (₹94,100 cr) and pipeline (₹4.4 lakh cr) support a ~26% revenue CAGR through FY27. Most brokerage surveys rate HAL as a core “buy” owing to its monopoly in fighter/helicopter production and robust margins.
Mazagon Dock Shipbuilders Ltd (MDL)
Overview: MDL is one of India’s premier defense shipyards (est. 1934, Mumbai). It has built 802 vessels to date, including 28 naval warships and 7 submarines. MDL specializes in constructing and refitting warships, submarines and other marine platforms for the Navy and Coast Guard. Its portfolio ranges from destroyers and corvettes to offshore patrol vessels.
Defence Operations: MDL’s core work is building combat ships (frigates, destroyers) and submarines. For example, MDL has delivered many frontline naval vessels (e.g. Kolkata-class destroyers, Shishumar-class subs) and major commercial ships. It is also part of a joint venture with ThyssenKrupp (German) to build Advanced Technology Submarines for India.
Recent News/Contracts: MDL’s JV with ThyssenKrupp (the Mazagaon-Dock-Dornier JV) recently cleared trials to become the sole bidder for India’s next-gen submarine project (6 advanced diesel-electric subs, ~$5 billion/₹37,000 cr). This is a watershed potential order for MDL and aligns with “Make in India” for submarines.
Stock Performance: MDL shares have surged on the defense-led rally. In mid-May 2025, MDL jumped nearly 5% in a single session (to ₹3,230). Earlier, it climbed ~4.6% on May 7. Over the month of May, MDL reached new all-time highs as investors bet on accelerated naval procurement.
Analyst View: Shipbuilding analysts note India’s expanded naval budgets and MDL’s robust order book. With the submarine deal looming, MDL’s prospects are seen as very strong. While official analyst targets vary, most brokerages have “Buy” calls, reflecting the strategic nature of MDL’s projects and likely margin expansion as execution ramps up.
Bharat Dynamics Ltd (BDL)
Overview: BDL is a government-owned company (MoD) founded in 1970, focused on manufacturing guided missiles and torpedoes. It produces India’s primary surface-to-air missiles (Akash SAM, MRSAM, Astra ASAM, etc.), anti-tank missiles (ATGMs, Milan), and naval torpedoes. BDL is a pillar of India’s defense-indigenization.
Defense Operations: BDL’s four factories (Hyderabad, Kanchanbagh, Manavrikar, Bhanoor) make missile systems and their components. Major programs under way include the Akash Mk1A/SAM, Astra Mk-II long-range AAM, and next-gen MRSAM/LLQRM. As of FY25, BDL’s order book is ~₹22,800 cr (roughly 7× its annual revenue).
Recent News/Contracts: BDL regularly supplies missiles to the Army and Air Force. Notably, recent exports include sending Akash systems to foreign customers, and it is a key part of India’s anti-air and anti-tank force build-up. In May 2025, amid India-Pakistan tension, BDL’s technologies (e.g. Akash, Astra) were reported in action.
Stock Performance: BDL’s stock spiked on the conflict, reflecting expected order flow. It jumped about +3% on May 8, 2025 and continued climbing. By mid-May it reached all-time highs (≈₹1,820). Overall, BDL is up roughly 8–10% since late April, riding the wave of defense spending optimism.
Analyst View: Analysts see BDL as a big winner of policy tailwinds (push for local missiles). A Nuvama report highlights its high-growth outlook – projecting ~55% CAGR (rev & EPS) during FY25–2, given the order backlog and export potential. Brokerage consensus is strongly positive, often with double‐digit upside targets.
BEML Ltd (formerly Bharat Earth Movers)
Overview: BEML is a state-owned heavy equipment maker (HQ Bengaluru, est. 1964). It produces earthmoving and mining machinery, rail coaches, and defense ground vehicles. BEML is Asia’s second-largest earthmover manufacturer and a supplier to the armed forces.
Defense Operations: Under its Defense SBU, BEML makes military-grade systems: 8×8 and 12×12 high-mobility trucks (under license from Tata/DRDO) for missiles and tanks, pontoon bridge systems, armored recovery vehicles, tank transporters (50-ton trailers), and various support vehicles. It also makes heavy-duty bulldozers and rail wagons for military logistics.
Recent News/Contracts: BEML regularly wins MoD contracts. For example, it supplies Tatra trucks to the Army and bridge systems to Corps of Engineers. (In 2023, BEML received multiple contracts from Indian Army/DGBR for bridging and vehicle systems, though no single blockbuster order is public.)
Stock Performance: BEML’s stock has risen in line with the sector. In early May 2025, it recorded modest gains (roughly flat to +1–2%) as investors rotated into defense names. (On May 8, BEML was essentially flat as indices rose) Over the past 6–12 months, BEML has outperformed broader markets, reflecting the defense capex cycle.
Analyst View: Analysts note BEML’s strategically important product mix. Defense accounts for a significant portion of BEML’s revenue (roughly 30–40%), with the rest in mining and rail. Valuations remain attractive relative to peers. Brokerages typically rate BEML as a “Hold/Buy”, citing improved order flow (transporters/bridging) and the benefit of infrastructure spending spillovers.
Cochin Shipyard Ltd (CSL)
Overview: CSL (est. 1972, Kochi) is a major government-owned shipbuilder and repair yard in India. It builds and services the largest vessels in India – including the Indian Navy’s new aircraft carrier INS Vikrant – as well as offshore platforms and merchant ships. CSL is India’s only builder of aircraft carriers and large-capacity warships.
Defence Operations: CSL’s defence portfolio includes building and retrofitting warships (e.g. Vikrant class carriers, survey and patrol vessels) and providing upkeep for naval ships. Its facilities can handle aircraft carriers and large naval vessels. Recent products include the Vikrant (commissioned 2022) and amphibious vessels. CSL also constructs large platform jackets for offshore defence surveillance systems.
Recent News/Contracts: In 2023–24, CSL delivered INS Vikrant to the Navy, showcasing its fabrication capabilities. It continues to receive orders for patrol and auxiliary vessels (e.g. Fast Patrol Vessels for coast guard). (E.g. in 2024 CSL won orders for survey vessels from the Navy.)
Stock Performance: CSL’s shares have climbed on the heightened defense climate. On May 8, 2025, CSL jumped +1.4% intraday. The stock has appreciated ~20% year-to-date (as of May 2025), driven by its key role in indigenizing naval shipbuilding.
Analyst View: With India boosting naval outlays, CSL is highly regarded. Analysts note that CSL’s order book and free cash flows should grow as carrier and amphibious ship projects ramp up. Most brokerages have “Buy” recommendations, citing an improving margin profile (from higher defense content) and record backlog (CSL’s backlog was ~3× its FY24 revenue).
Bharat Forge Ltd (BFL)
Overview: Bharat Forge is a global leader in metal forging (founded 1961) with diversified business (automotive, industrial, defense, EV). It manufactures heavy-duty armored vehicle components, artillery gun systems, engine parts and more. Defense is ~70% of BFL’s business (including gun barrels, tank and missile vehicle components).
Defence Operations: BFL’s key defence products include the towed howitzer gun (ATAGS) system, ordnance barrels, and high-mobility vehicles. It forms the strategic partner in the ATAGS artillery project (with American partners and Tata) and supplies artillery and vehicle parts to the Army.
Recent News/Contracts: In Mar 2025, the MoD announced huge contracts (₹6,900 cr) for advanced artillery: BFL (with Tata’s TASL) won orders for 307 ATAGS 155mm/52 howitzers and allied equipment. This is one of India’s largest single defense procurements. BFL also regularly wins orders for guns and supplies to the armed forces.
Stock Performance: BFL’s stock was volatile on the news. On Mar 27, 2025 (day after the ATAGS deal was public), shares traded flat at ~₹1,183 (investors had largely priced in the news). In May, BFL benefited from the broad defense rally, though it did not spike as dramatically as smaller stocks. Over the last year, BFL has gained 30–40% in line with its peers.
Analyst View: Post-contract, analysts value BFL at higher multiples. Its Q4 FY25 results showed flat sales (₹3,853 cr) but net profit up 19.5% (₹282 cr). BFL’s order book (₹9,420 cr) and large new orders (₹6,959 cr in FY25) support forecasts. Most analysts have “Buy” or “Hold” ratings, with 1-yr targets often ~10–15% above current prices, reflecting strong demand for indigenous artillery and vehicles.
Solar Industries India Ltd
Overview: Solar Industries (est. 1981) started as an explosives maker and has become a major defense munitions supplier Headquartered in Nagpur, Solar manufactures specialty chemicals, rockets and warheads for military applications. It is now among the world’s largest producers of rocket/missile motors and ammunition.
Defense Operations: Solar has diversified into defense rocketry and precision munitions. Its defense order book reached ~₹13,400 cr (FY2024). Key products include rocket motors for surface-to-surface missiles (Pinaka rockets, etc.), warheads, torpedo systems and artillery ammunition. Solar’s export markets also include friendly foreign armed forces.
Recent News/Contracts: During the recent clashes, Solar’s rockets/warheads were reportedly used in strikes (per media reports). While no single contract stands out, its stock surged as investors anticipated more orders. (In late 2024 it sold an aircraft to the Air Force for range-finding, showing diversification.)
Stock Performance: Solar’s stock has zoomed in 2024–25. In May 2025, it hit new highs: on May 15 it surged to an all-time high of ~₹13,950. The stock is up over +50% year-to-date, reflecting robust defense demand. Commentary noted that Solar’s equipment “dealt a crushing blow” in the strikes, boosting sentiment.
Analyst View: Analysts highlight Solar’s exceptional growth: they project defense revenues growing ~32.4% CAGR and EPS ~45% CAGR through FY27. The defense segment is expected to rise from ~8% of sales in FY24 to ~29% by FY27. Brokerage reports generally have “Buy” ratings, citing Solar as a self-reliance play in rockets/ammo. (However, some caution that valuations are high after the run-up.)
Paras Defense & Space Technologies Ltd
Overview: Paras Defense is a Hyderabad-based defense technology firm (GOI holding ~57%) that makes high-precision opto-electronic and aerospace systems. Founded in 1972, it operates three verticals: defense optics (IR lenses, gyros, trackers), defense electronics (circuitry, navigation), and heavy engineering (payloads, launchers). Its clients include DRDO and the armed forces.
Defence Operations: Paras supplies components for missiles, radars and lasers. Its products include thermal imaging and surveillance systems, electronic countermeasure gear, and laser modules. It is one of India’s few firms with capabilities in high-power laser weapons and is involved in DRDO projects.
Recent News/Contracts: In Mar 2025 Paras won a ₹142.31 cr contract from DRDO’s CHESS lab to develop a high-powered anti-drone laser system. The company emphasized that it is the first Indian firm developing such a system. Paras also reported strong Q3 FY25 results (net profit ₹15.04 cr, +125% YoY) on rising order execution.
Stock Performance: Paras shares have surged dramatically amid the conflict. On Apr 28, 2025 they spiked ~+11.7% intraday. Since the May 7 strikes, Paras is up roughly +16%. (ET notes Paras among “drone-related” stocks gaining 30–50%) Over the past month Paras is up several-fold.
Analyst View: Paras’s strong recent earnings and govt backing have earned it a “Buy” consensus from many brokers. The stock’s run-up means some caution on valuation, but analysts note Paras’s unique tech portfolio (laser/optics) and expanding order book. (Motilal Oswal’s fund manager B. Shinde cited drone-system makers like Paras as major beneficiaries)
IdeaForge Technology Ltd:
- Overview: IdeaForge is an Indian drone (UAV) pioneer (founded 2007 by IIT Mumbai alumni). It is the market leader in domestic UAVs, with over 650,000 flights of its drones completed. Its products (e.g. SWITCH series) include surveillance drones for defense, police and civilian use. (Drone Industry Insights ranks it 3rd globally in dual-use UAV manufacturing as of Dec 2024).
- Defense Operations: IdeaForge designs and manufactures indigenously built VTOL and fixed-wing drones. Its flagship is the SWITCH VTOL drone, used by the Indian Army for reconnaissance. It supplies the Indian Army and paramilitary forces under global tenders. Notably, in 2022 IdeaForge secured a contract to deliver 200 VTOL drones to the Army (100 in 2022, 100 in 2023).
- Recent News/Contracts: Besides that, IdeaForge won several contracts (e.g. $20m deal for SWITCH drone delivery). In the recent conflict, the heavy use of drones drove investor interest in IdeaForge. Its successful tender wins over foreign rivals highlight its strategic role.
- Stock Performance: IdeaForge’s stock exploded after the conflict: since May 7, 2025 its share price climbed from ~₹362 to ~₹546 – about +50% gain. This makes it one of the fastest-rising defense stocks in 2025. (The ET notes IdeaForge among drone stocks up “30–50%” since the strikes)
- Analyst View: IdeaForge’s surge has drawn both enthusiasm and caution. The MD was quoted noting high P/E valuations after the rally. Many analysts remain positive on its long-term growth (given India’s UAV push) but advise monitoring profitability. (For example, ET cites an AMC manager warning “the outlook from a valuation perspective is not exciting … since drone stocks are trading in a high P/E range”). Nonetheless, IdeaForge is widely held by defense investors as a strategic UAV play.
