Cochin Shipyard, BEML to Mazagon Dock: Defence stocks rally after govt clears ₹79,000-cr proposals for Armed Forces

Defence stocks rallied in early trade on Friday after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved capital acquisition proposals worth ₹79,000 crore for the Armed Forces.

Shares of Bharat Dynamics, BEML, Cochin Shipyard, and Paras Defence and Space Technologies rose over 2% each, lifting the Nifty India Defence Index by more than 1%.

Other major gainers from the index included Garden Reach Shipbuilders & Engineers, Unimech Aerospace and Manufacturing, Mazagon Dock Shipbuilders, and Data Patterns (India), which gained between 1–2%.

The rally followed the government’s approval of several key procurement proposals, including the Nag Missile System (Tracked) Mk-II (NAMIS), Ground-Based Mobile ELINT System (GBMES), and High Mobility Vehicles (HMVs) equipped with material handling cranes for the Indian Army.

All these missile systems and defence vehicles will strengthen the Indian Army's capabilities, the ministry said.

Defence stocks to benefit

In FY26 so far, the DAC has accorded AoN for proposals worth approximately ₹2.5 lakh crore under various categories of capital procurement, surpassing the FY25 approvals of ₹2.2 lakh crore. The total share of domestic procurement has jumped to 92% in FY25 from 54% in FY19.

According to Antique Stock Broking, 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.

The brokerage firm maintains a ‘Buy’ rating on the following stocks:

PTC Industries | Buy | Target Price: ₹19,016

Bharat Electronics | Buy | Target Price: ₹454

Bharat Dynamics | Buy | Target Price: ₹1,951

Hindustan Aeronautics | Buy | Target Price: ₹6,356

BEML | Buy | Target Price: ₹4,921

Solar Industries India | Buy | Target Price: ₹16,600

Zen Technologies | Buy | Target Price: ₹1,866

Mazagon Dock Shipbuilders | Buy | Target Price: ₹3,856

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.