Following a comprehensive review of the Indian defence and aerospace sector, Choice Institutional Equities has reiterated its positive stance, updating target prices and ratings for several key players after their Q4 earnings calls. The brokerage firm analyzed eight major companies, including Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and ZEN Technologies Ltd, highlighting robust order books and strategic growth initiatives across the board.
Hindustan Aeronautics Ltd (HAL) Outlook
Choice has maintained a ‘Buy’ rating for HAL, setting a target price of Rs 5,050. The company concluded FY26 with a record order book valued at Rs 254,538 crore, bolstered by fresh order inflows of Rs 97,028 crore during the year. HAL's ambitious Vision 2030 includes a planned capital expenditure of Rs 12,000 crore to develop manufacturing infrastructure for critical projects such as the LCA Mk2 and IMRH engines.
Bharat Electronics Ltd (BEL) Analysis
BEL also received a ‘Buy’ rating from Choice, with a target price of Rs 500. The company's fiscal year concluded with a strong order book of Rs 73,882 crore. A primary driver for margin expansion is strategic indigenisation, with BEL achieving 80-85% indigenous content across its platforms. The company is actively pursuing opportunities in homegrown, cyber-safe data center solutions, anticipating potential orders ranging from Rs 2,000 crore to Rs 10,000 crore.
ZEN Technologies Ltd Projections
ZEN Technologies retains its ‘Buy’ rating and a target price of Rs 1,850. The firm is expanding its capabilities in anti-drone systems and simulation technology, recently unveiling its new Hyperstrike autonomous interceptor drone. Geopolitical conflicts are noted as a significant tailwind, accelerating military preparedness and driving demand for Zen Tech's specialized solutions. The company’s consolidated order book stands at Rs 1,336 crore.
Data Patterns (India) Ltd Rating
Data Patterns has been assigned an ‘Add’ rating, with Choice setting a target price of Rs 4,060. The brokerage highlighted management's strategic decision to undertake a dilutive contract aimed at developing comprehensive system capabilities.
Apollo Micro Systems Ltd Insights
Apollo Micro Systems received an ‘Add’ rating and a target price of Rs 365. The company recently secured a lifetime DPIIT license, enabling it to manufacture a wide array of systems, including UAVs, radars, torpedoes, and missiles, paving the way for full weapon system production.
Centum Electronics Ltd Review
Choice has given Centum Electronics an ‘Add’ rating and a target price of Rs 3,300. The company's Build-to-Specification (BTS) segment, known for its higher margins, reported impressive revenue growth of approximately 37% year-over-year in FY26.
Azad Engineering Ltd and Astra Microwave Products Ltd
For Azad Engineering Ltd, Choice issued a ‘Reduce’ call with a target price of Rs 1,900. This follows Azad securing an 8-year, single-source contract for hot-section nozzle vane segments from Mitsubishi Heavy Industries.
Astra Microwave Products Ltd also received a ‘Reduce’ call, with a target price of Rs 1,300. The brokerage noted Astra's successful transition 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 by the end of FY26.