Zen Tech, Paras Defence, BDL, GRSE, Cochin Shipyard, BEL, HAL shares jump up to 5% amid Iran-Israel tensions

Shares of defence makers including Zen Technologies, Paras Defence, Bharat Dynamics (BDL), Garden Reach (GRSE), Cochin Shipyard, Bharat Electronics (BEL) and Hindustan Aeronautics Ltd (HAL) climbed up to 5 per cent in Friday's trade amid flare up of Iran-Israel tensions. Israel is a key defence partner of India.
  
Shares of Zen Tech advanced nearly 5 per cent and was later trading at Rs 76 apiece. Paras Defence gained 2.92 per cent to Rs 46.20. Astra Micro, BDL and BEML added 2.68 per cent, 2.53 per cent and 2.34 per cent. Cochin Shipyard, DCX India, Midhani, HAL and BEL gained over 2 per cent each. GRSE, Data Patterns, MTAR Tech, Solar Industries and Dynamatic Technologies Ltd also gained.

Israel suggested that it had hit Iran’s nuclear facilities, ballistic missile production sites, and military leadership as part of the opening phase of what it described as a long-term campaign aimed at preventing Tehran from developing a nuclear weapon, according to Reuters.

Choice Broking in a note on Friday suggested a target price of Rs 5,570 on HAL, Rs 1,785 on BDL and Rs 420 on BEL. Among tier II defence players, it suggested a target price of Rs 1,050 on Astra Microwave, Rs 2,915 on Data Patterns, Rs 200 on Apollo Micro and Rs 1,865 on Azad Engineering. For DCX and Centum, this brokerage suggested targets of Rs 260 and Rs 2,050, respectively.   

Choice Broking said India's strategic focus is expanding into high-value areas like space surveillance, missiles, and electronic warfare, supported by Rs 22,500 crore-plus in CCS-approved projects and Rs 40,000-50,000 crore in emergency procurement.

"Defense exports hit a record Rs 23,600 crore in FY25, with strong traction in Europe amid rising budgets. Indian firms are scaling in next-gen domains like Al, drones, & cyber defense, enhancing long-term _growth visibility- Despite near-term execution risks, structural tailwinds-indigenization, policy push, & global demand remain intact," Choice Broking said.

Choice said this may act as a potential catalyst for increased defense spending. particularly in surveillance, drones, and tactical systems segments where listed Indian players are well-positioned. This aligns with the "Atmanirbhar Bharat" vision, strengthening the case for domestic defense manufacturing, it said.