Buy Defence Stocks: 6 Top-choice ICICI Securities in Air India, Bharat Electronics and Mishra Dhatu Nigam
In terms of order improvement and development, ICICI Securities lists the highest defensive picks; private and PSU on the list
Domestic brokerage ICICI Securities listed a large number of defense stocks in private and public spaces in its report dated July 7, which it likes based on a range of developments in June.
Before listing stocks, we will take you through the developments pointed out in the brokerage report:
HAL has been announced as a bidder for ISRO small satellite launcher. HAL has signed an agreement with France’s Safran aircraft engines to produce rotating parts of Leap engines.
The solar industry has successfully completed trials of its Rudrastra Hybrid vertical takeoff and landing drones.
Bel & Tata Electronics has signed a memorandum of understanding to promote India’s self-reliance in electronics and semiconductors.
Mazagon Dock Shipyard has gained control of the Colombo Shipyard in Sri Lanka through a $52 million deal.
MDSL and Hindustan Shipyard will finalize a memorandum of understanding to jointly build submarines, making it the country’s first ever twin-coast submarine production capacity.
Grse has partnered with Kongsberg Maritime in Norway to build advanced polar research vessels for India.
Grse cooperates with Berg Propulsion in Sweden for local manufacturing of equipment and systems related to marine propulsion.
Grse laid the fourth NG-OPV keel for the Indian Navy.
Zen Technologies has acquired a majority stake in Tisa Aerospace Pvt. Ltd. Zen Technologies has obtained an innovative patent for laser-based combat training.
PTC Industries has signed a memorandum of understanding with Safran aircraft engines to jointly explore the manufacturing of components and materials for military aircraft engines.
The Ministry of Defense has allocated INR 90 billion of Indian Army procurement for capacity building and refilling exhausted ammunition stocks through faster emergency procurement routes.
Indian troops have released RFI for procurement of 4,000 anti-tank mines for advanced attacks. The Indian Army has released a message requiring the purchase of 155mm precisely formulated ammunition for its howitzers.
The prospects of the national defense stock
There have been large-scale emergency procurement approvals, and recently, the Ministry of Defense has approved EP or emergency procurement of INR 20 billion for various platforms. In addition, the DAC has approved AON’s 10 proposals worth INR 105 billion. . Continuing, most companies under brokerage firms are guiding revenue growth of more than 15% in FY26. However, some companies like BDL, the solar industry and Azad Engineering have higher growth rates of about 25% to 30%.
For FY26, order inflows for companies under brokerage underwriting are expected to remain strong, with company guidance including: i) BEL – Expected OI (INR 20-25 billion MB/25 billion MB (QRSAM orders) (ii), ii) HAL – Expected > inr 1TRN OI, which includes Su-30 Upgrade, Tejas Mk-2 and Roh orh is iii by y Is IS IS IS IS IS IS IS IS IS IS IS IS III BD, Category, IV) Grse expects NG, among other vessel orders Corvette orders are INR 25 billion, v) Midhani expects OI to be INR 1.2-1.3 billion, VI) Zen expects H1fy26 and VII26 and VII) ASTRA to be INR 8 billion. ASTRA expects Oi of Inr 13-14bn Inr of Inr oi oi oi oi oi.
Brokerage’s first choice in the field of defense
The broker lists our preferred solar industry in private spaces, Astra Microwave and Azad Engineering. In Defense PSU, it prefers HAL, BEL and MIDHANI
