JPMorgan has initiated coverage on key players in India’s defense sector, reflecting optimism about the long-term structural growth prospects of the industry. The brokerage has given an Overweight rating to Bharat Electronics Ltd. (BEL) and Hindustan Aeronautics Ltd. (HAL) with target prices of ₹340 and ₹5,135, respectively, while assigning a Neutral rating to Mazagon Dock Shipbuilders with a target price of ₹4,248.
JPMorgan views BEL as its preferred pick, citing its leadership in defense production and its growing export potential. The defense sector is expected to witness significant growth, driven by rising government contracts, increased export opportunities, and a focus on indigenization under the Atmanirbhar Bharat initiative. Recent corrections in stock prices across the sector offer attractive entry points for investors seeking long-term gains.
