All defence stocks have declared their Q4 results for FY26. Accordingly, Choice Institutional Equities has declared its top picks. While the brokerage reduced its rating on stocks like Astra Microwave Products or Azad Engineering, it recommended ADD on a host of defence stocks such as Data Patterns, Apollo Micro Systems, and Centum.
However, three stocks were recommended as BUY, and two of them are zero-debt Maharatna PSUs namely Hindustan Aeronautics (HAL) and Bharat Electronics (BEL). HAL and BEL are India’s two largest defence and aerospace players. But among these two giants, one private defence company is also hot bet and that is Zen Technologies. The brokerage calls were after the Q4 results.
Defence Stocks To BUY
Hindustan Aeronautics (HAL) Share Price:
Over the medium term, analysts believe the setup remains favourable. With multiple production lines active and a strong order pipeline, incremental deliveries should support operating leverage. More importantly, every new platform inducted expands the future ROH funnel, which in their view is the key driver of long-term earnings visibility.
Overall, HAL is seen to evolve into a platform lifecycle play with improving revenue visibility, though near-term growth will remain dependent on execution and delivery timelines,” analysts said.
Following this, the analysts have recommended BUY on HAL for a target price of Rs 5,050.
Currently, HAL share price is at Rs 4,300.70 apiece, with a market cap of Rs 2,87,620.06 crore on BSE.
Bharat Electronics (BEL) Share Price:
Analysts conviction strengthens around BHE’s medium-term positioning, with a strong order pipeline across QRSAM (near-term), P-75(I), next-gen corvettes, EW systems and other large programmes, alongside a steady cadence of large-ticket opportunities every few years.
Also, the ongoing shift towards higher value-add (system-level participation, deeper indigenisation, new tech investments) should support margin sustainability rather than dilution. Beyond this, the key monitorable is execution conversion (timely ramp-up and higher content per platform), which should gradually improve revenue visibility and operating leverage.
As the mix shifts toward more complex, system-driven opportunities, they said, “we expect earnings quality to strengthen, reinforcing BHE’s positioning as a structural play on the defence electronics upcycle.”
Accordingly, analysts have recommended BUY for a target price of Rs 500. BEL share price is currently at Rs 410.90 apiece, with market cap of Rs 3,00,358.81 crore on BSE.
Zen Technologies Share Price:
Looking ahead, analysts said, “we continue to view ZEN as a structurally well-positioned player, in an emerging, scalable, high-priority segment globally. The expanding product suite and focus on indigenisation strengthen its competitive positioning.”
However, they also added that “revenue visibility remains closely linked to order inflows and execution cadence, which can bring periodic volatility.”
As such, while the medium- to long-term growth narrative remains intact, near-term performance is forecast to remain lumpy, making execution visibility the key monitorable.
That being said, analysts recommended BUY for a target of Rs 1,850. Currently, ZEN Tech shares stood at Rs 1666.10 apiece on BSE, with a market cap of Rs 15,043.28 crore.
Defence Stocks To ADD
Data Patterns Share Price:
Analysts are positive on Data Patterns and they believe the company sits in a relatively niche position – high control, limited competition and increasing platform-level relevance. If execution sustains and pipeline conversion improves, earnings could surprise on the upside, though near-term trajectory will still depend on order inflows and execution pace.
Hence, they recommended ADD for a target price of Rs 4,060. Currently, Data Patterns share price stood at Rs 4,038.60 apiece, with market cap of Rs 22,609.69 crore.
Apollo Micro Systems Share Price:
In the near term, Apollo Micro’s margin is likely to remain range-bound, as the integration of IDL, product mix changes and execution ramp-up continue to absorb operating leverage.
Also, its boarder strategy remains on track, with a gradual shift towards system-level and backward integration.
Thereby, Apollo Micro is recommended to ADD for a target price of Rs 365. At present, Apollo Micro share price stood at Rs 408.85 apiece, with market cap of Rs 14,607.90 crore.
Centum Electronics Share Price
At present, Centum shares are at Rs 3483.95 apiece, with market cap of Rs 5,141.97 crore on BSE. They have recommended ADD for a target price of Rs 3,300.
Analysts expect Centum to move up the value chain, from EMS (~10% margins) to BTS (~20%+ margins) while building proprietary defence/space IP and full-system capabilities. This creates a dual engine for steady annuity-like EMS, plus high-margin, long-cycle BTS programmes (radars, space
systems).
However, this transition comes with risks – dependence on anchor customers (especially in semicon), supply-chain tightness and potential customer overlap as it moves upstream.
Defence Stocks To Reduce
AZAD Engineering Share Price:
Choice’s analysts added, “the next phase is likely to be more about execution than expansion. With multiple plants already set up or ramping up, and inventory built ahead of demand, the key question now is conversion. From FY27 onwards, we expect a shift from investment phase to revenue and cash flow generation.”
However, in terms of valuation, they have factored a moderated near-term growth trajectory. Accordingly, they have downgraded their stance to REDUCE from BUY on AZAD with target price at Rs 1,900.
On BSE, Azad Engineering share price is at Rs 2011.25 apiece, with market cap of Rs 12,989 crore.
Astra Microwave Products:
Apart from Azad, these analysts have assigned REDUCE rating with target price at RS 1,300. Overall, these analysts believe near-term growth remains calibrated, but execution intensity and business quality are expected to improve meaningfully over FY27-28E.
Astra Microwave stock is at Rs 1400.95 apiece currently on BSE, with a market cap of Rs 13,301.32 crore.