Defence Stocks To Watch: HAL, Mazagon, BEL, BDL And Other Shares Are Soaring In 2025 — But Is It Right Time To Invest?

Defence Stocks To Watch: India’s defence sector has been on a strong upward trend in 2025, with the Nifty India Defence Index delivering one of the best performances among all sectoral indices. So far this calendar year, it has surged around 28.3% in just over six months.

In comparison, the broader Nifty 50 has gained a much lower 1.56% during the same period.

Over the last three months alone, the Defence Index has risen 61.67%, and in the past month, it’s up 27.22%. This sharp rally has drawn attention from retail and institutional investors alike, raising the big question: is it still the right time to invest in defence stocks?

Key Defence Stocks and Their Recent Rally

Many individual defence stocks have seen spectacular short-term gains. Garden Reach Shipbuilders & Engineers, for example, is currently trading around Rs 3,246.90 and has delivered a 77.22% return in just one month and an incredible 150.37% gain over the last three months.

Similarly, Cochin Shipyard has also been a standout performer, trading at Rs 2,392.60 and gaining 61.51% in a month and 85.49% over three months. Paras Defence and Space Technologies has rallied 21.73% in the past month and 83.16% in the last quarter.

Bharat Dynamics is up over 26.55% this month and 81.59% in the last three months, now trading at Rs 1,933.25.

Mazagon Dock Shipbuilders, another major player in the sector, has also posted gains of over 51% in the last quarter.

Bharat Electronics (BEL), one of the biggest defence companies, is currently trading at Rs 390.70, delivering 25.81% returns in a month and 43.22% in three months.

These stocks have clearly delivered massive outperformance compared to the broader market.

Also Read: Vedanta’s Anil Agarwal: From 9 Failed Businesses To Rs 35,000 Cr Empire

Should You Buy Defence Stocks?

According to Nilesh Jain, Head of Research at Centrum Broking, “Most defence stocks are looking extremely overbought. The risk-reward is not favorable at current levels, so chasing momentum is not advisable.” 

That said, the broader outlook for defence remains strong. Jain adds, “Stocks like GRSE, Mazagon Dock, HAL, and Cochin Shipyard still look fairly valued. If there's a meaningful decline, that can be a good opportunity to buy in multiple tranches.”

Jain suggests that investors wait for a meaningful correction before entering these stocks. He believes any significant dip could offer a better buying opportunity. For those who are already holding positions in these defence stocks, it may be sensible to stay invested and ride the momentum further.

But fresh investments should ideally be made in parts or tranches to manage the average buying cost more effectively and reduce risk.

Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.