HAL, BEL, Mazagon Dock Among Antique’s Top Defence Picks as Rs 16 Trillion Order Pipeline Strengthens Outlook

India’s defence sector is witnessing unprecedented growth, with a massive Rs 16 trillion procurement pipeline driving optimism among investors. Antique Stock Broking has identified Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Mazagon Dock Shipbuilders as top picks, citing their strong order inflows and expanding manufacturing capabilities.  

Sector Growth and Investment Potential  

- HAL, BEL, and Mazagon Dock are expected to benefit from India’s intensified focus on defence self-reliance and modernisation  
- The Defence Acquisition Council has approved procurements worth Rs 8.5 trillion over FY23–25, nearly matching approvals from the previous decade  
- HAL is set to receive over 300 new aircraft orders in the next 10–15 years, including Tejas Mk-1A, Mk-II, and AMCA fighter jets  
- BEL is positioned to capitalize on increased spending on missile systems, with a Rs 300 billion QRSAM order expected in FY26  
- Mazagon Dock is likely to secure fresh orders for three Scorpene-class submarines, potentially doubling its order book  

Strategic Expansion and Market Positioning  

HAL’s execution capacity is expected to improve significantly following the delivery of the first GE engine in FY26, with 12 more scheduled for the same year. BEL is planning an annual capex of Rs 7–8 billion over the next three to four years to support its growing order book. Mazagon Dock is set to benefit from India’s naval expansion, with strong prospects in the P75I and P17B frigate programs.  

Future Outlook  

With 75 percent of FY24–25’s capital budget earmarked for domestic procurement, India is reinforcing its commitment to defence manufacturing. The structural opportunity unfolding in the sector is expected to drive long-term growth, making HAL, BEL, and Mazagon Dock key players in India’s defence modernization efforts.  

Sources: Economic Times, MSN, NDTV Profit.