Defence stocks: According to the Indian defence and aerospace sector review by Choice Institutional Equities, which analysed the latest conference calls of eight key players such as Hindustan Aeronautics Ltd (HAL), ZEN Technologies Ltd, Bharat Electronics Ltd (BEL) and others, the brokerage maintained a positive sector view across the board.

HAL

The brokerage has a ‘Buy’ call on HAL with a target price of Rs 5,050. It noted that HAL with a record order book that expanded to Rs 254,538 crore at the end of FY26. Fresh order inflows for the year totalled Rs 97,028 crore. 

Choice highlighted the company's capex vision 2030, which maps out a planned investment of Rs 12,000 crore by 2030 to construct manufacturing infrastructure for projects like the LCA Mk2 and IMRH engines. 

BEL

BEL was also tagged with ‘Buy rating, along with a target price of Rs 500. The brokerage noted that it closed the fiscal year with an order book of Rs 73,882 crore. Choice noted that strategic indigenisation remains the primary lever for margin expansion, with indigenous content averaging 80-85% across platforms. 

The company is aggressively pursuing homegrown, cyber-safe data centre solutions with potential orders ranging from Rs 2,000 to Rs 10,000 crore, it said.

Zen Tech

The brokerage retained its ‘Buy’rating on the stock with a target price of Rs 1,850. The company is expanding its anti-drone and simulation capabilities, revealing its new Hyperstrike autonomous interceptor drone, it said.

Choice pointed out that recent geopolitical conflicts are accelerating military preparedness, acting as a industry tailwind for the firm's solutions. The company’s consolidated order book stood at Rs 1,336 crore.

Data Patterns (India) Ltd

Data Patterns has an 'Add' rating and a target price of Rs 4,060. Choice noted that "The management purposely accepted a dilutive contract to develop full system capabilities.”

Apollo Micro Systems Ltd

Apollo Micro was also tagged with an ‘Add’ rating and a target price of Rs 365.  The company has secured a lifetime DPIIT license covering a wide array of systems including UAVs, radars, torpedoes, and missiles, which paves the way for manufacturing the full weapon system, Choice noted.

Centum Electronics Ltd

Choice has assigned an ‘Add’ rating with a target price of Rs 3,300. The company's Build-to-Specification (BTS) segment, a structurally higher-margin business, delivered revenue growth of roughly 37% YoY in FY26, it said.

Azad Engineering Ltd

Meanwhile, Azad Engineering has a ‘Reduce’ call and a target price of Rs 1,900. Choice highlighted that Azad secured an 8-year, single-source contract for hot-section nozzle vane segments from Mitsubishi Heavy Industries. 

Astra Microwave Products Ltd

It also has a ‘Reduce’ call.  The broking has set a target price of Rs 1,300. Choice noted it is successfully evolving from a Tier-II component supplier to an integrated, IP-driven Tier-I systems manufacturer. The company's consolidated order book reached Rs 2,600 crore at the end of FY26.